Wednesday, September 7, 2011

20110907 1002 Malaysia Corporate Related News.

Boustead clarifies bid for Esso, refinery plan
Boustead Holdings said it indeed had submitted a bid to acquire ExxonMobil Corp's stake in Esso Bhd, and that it had no plans to shut down the Port Dickson, Negeri Sembilan refinery or lay off any staff if it had won the bid. In a statement to the stock exchange yesterday, Boustead said the bid was made on the basis of business continuity and the refinery would be operating as per usual. Boustead was responding to news reports which had cropped up in relation to the sale of ExxonMobil Corp's downstream assets in Malaysia to Philippine-based conglomerate San Miguel Corp last month. Boustead said certain information disclosed by US-based ExxonMobil during a press conference was inaccurate. The company said it had submitted a fair and competitive offer to ExxonMobil Corp in July for the downstream assets, namely 65% in Esso Malaysia Bhd, 100% shareholding in ExxonMobil Malaysia SB and 100% shareholding in ExxonMobil Borneo SB. (BT)

HLBB rights issue at RM8.65 each
Hong Leong Bank (HLBB) has fixed the issue price for its proposed rights issue at RM8.65 per rights share. This represents a discount of 30.3% to the five-day volume weighted average market price of HLBB shares up to 5 Sept this year of RM12.41 and 26.6% to the theoretical ex-rights price of HLBB shares of RM11.78 (based on the 5-day VWAMP). HLBB said the rights issue will be carried out on a basis of 1-for-5 HLBB shares held. (Financial Daily)

SC scrutinising Sime’s purchase of E&O stake
The Securities Commission (SC) is “examining the circumstances of the transaction” involving Sime Darby buying a 30% stake in Eastern & Oriental (E&O), the regulator said in an email reply to questions from StarBiz. The SC also said that the premium paid by Sime Darby for the 30% in E&O “is one, among several factors, which the SC will take into consideration in deciding whether an acquirer has obtained control of a company, as provided by Para 6.2 of Practice Note 9 of the Takeover Code 2010”. Questions have been raised as to whether Sime Darby will be required by the SC to launch a mandatory general offer (MGO) for the remaining shares in E&O. (StarBiz)

Alam Maritim inks charter agreement
Alam Maritim Resources Bhd's subsidiary, Alam Maritim SB, has signed a Charter Party Agreement with ExxonMobil Exploration and Production Malaysia Inc (EMEPMI) for the provision of an accommodation vessel and an Anchor Handling Tug. The Contract is for a primary period of three years with an extension option exercisable by EMEPMI for another two years. "The Contract is for a value of up to RM220.83m (if EMEPMI engages the vessel and tug for the full duration - inclusive of optional period)," Alam Maritim said in a filing to Bursa Malaysia. The Contract is expected to positively contribute to the earnings and net assets of Alam Maritim for the financial year ending 31 Dec 2011 and beyond. (Bernama)

Taliworks gets RM339m dam contract
Taliworks Corp has secured a RM339m sub-contract from China International Water and Electric Corp SB (CWEM) to undertake the Mengkuang Dam expansion project in Penang. In a filing with Bursa Malaysia yesterday, it said the sub-contract involved earthworks for the construction of the dam, draw-off tunnel and others over 60 months. The completion is scheduled for 31 July 2016. The Mengkuang Dam expansion, a Federal Government project, was earlier awarded to CWEM by the Energy, Green Technology and Water Ministry. (StarBiz)

RHB Cap delays application to buy Bank Mestika
RHB Capital (RHB Cap) has put on hold its application to acquire Indonesia's PT Bank Mestika Dharma pending a review by Indonesia's central bank to impose a limit on single-party ownership in commercial banks there. “It is too early for us to comment further at this stage as there is no clarity on the outcome of the new ruling. “We continue to closely monitor the developments,” RHB Cap told StarBiz. RHB Cap's decision to put on hold its proposed buy of Bank Mestika comes amid Bank Indonesia's plans to limit single-party ownership in commercial banks to not more than 50%. However, this is still at the assessment stage. RHB Cap had earlier stated its intention to buy 80% in Bank Mestika for RM1.16bil. (StarBiz)

RHB Bank looks for new chief by year-end
RHB Bank is on the lookout for a new managing director (MD) now that Renzo Viegas, its principal officer that was to have been the MD, intends to take time off from the country's fifth largest banking group. Sources said a potential candidate is likely to be finalised soon, possibly in the next two to three weeks, and will likely be appointed before the year-end if the central bank had no objections to the candidate. "They'll look for a Malaysian, and it'll most probably be from outside the group," one of them said. RHB Bank, in a press statement, said it had withdrawn an earlier application to Bank Negara Malaysia to appoint Viegas as managing director following his intention to take time off for personal matters next year. He will however continue to be the principal officer of the bank, pending the appointment of the new chief executive officer/ managing director. (StarBiz)

US based company seeks US$80m damages from MAS
US-based GIRO-Warranty House International, Inc. is seeking US$80 million (RM238.4 million) in damages from MALAYSIAN AIRLINE SYSTEM BHD (MAS). MAS said on Tuesday, Sept 6 it was served with a complaint in the US District Court for the Northern District of Oklahoma on Aug 22. “GIRO – Warranty House International, Inc. alleges breach of contract and fraudulent misrepresentation and seeks damages of up to US$80 million,” it said. MAS said it was reviewing the complaint with the assistance of external counsel. (Source: The Edge)

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