Monday, September 12, 2011

20110912 1119 Malaysia Corporate Related News.

Sime: Open to GO for E&O. Sime Darby Bhd is open to increase its stake and make a general offer (GO) for Eastern & Oriental Bhd (E&O) shares at the right time, having recently purchased a 30% stake in the latter at RM2.30 per share, said its president and group CEO Datuk Mohd Bakke Salleh. (Source: The Star)

CIMB: Nazir reorganizes CIMB. CIMB Group Holdings Bhd has embarked on its biggest reorganization since a restructuring in 2005 gave birth to the second largest banking group in the country. After the exercise, CIMBs group management committee will be trimmed to 15 people from 21. Datuk Seri Nazir Razak will hold dual functions as group CEO and head of Malaysian consumer bank. Meanwhile, Datuk Charon Wardini Mokhzani will be designated as CEO of CIMB Investment Bank Bhd. (Source: The Edge Financial Weekly)

UEM Land: 5 biotech proposals. Malaysian Biotechnology Corp says five more foreign biotech companies are planning to invest millions of ringgit at BioXCell@Nusajaya. One of them is Indias Biotech giant, Biocon Ltd that will be setting up a RM500m plant in BioXCell. UEM Land holds 40% equity in Malaysian BioXCell with remaining 60% held by Biotech Corp. (Source: The Star)

O&G: Gas Malaysia guarantees dividends in first two years, IPO set at RM2.20/sh. Gas Malaysia Bhd will pay a guaranteed dividend of 100% and 75% in the first two years, respectively, after floating its shares on Bursa Malaysia in December this year. Separately, Gas Malaysia shares will be sold at an indicative offer price of RM2.20 a share to prospective investors. (Source: The Star, The Malaysian Reserve)

Construction: Works Ministry to discuss Bumi contracts with Prasarana. The Works Ministry will hold discussions with Syarikat Prasarana Negara Bhd to identify job scope and contracts worth RM8b to be distributed to Bumiputera contractors via the implementation of the Sg-Buloh-Kajang stretch of the Mass Rapid Transit (MRT) system. (Source: Bernama)

Volkswagen to assemble Passat, Polo in Pahang
Volkswagen AG, Europe’s largest car manufacturer, will assemble Passat and Polo models at DRB-HICOM Bhd’s plant in Pekan, Pahang. “The assembly of our Passat and Polo models in Pekan will make Volkswagen cars more price competitive and appealing to Malaysians,” said Volkswagen Group Malaysia managing director Ricky Tay. When asked on the sales performance of Volkswagen cars in Malaysia, Tay replied, “As at end-August we sold some 3,500 units.” “Last year, our car sales was 0.2% of the total industry volume. As at June 2011, it had risen to 1.4%,” he said. “Our long-term goal is to capture 10% of Malaysia’s car market.”(BT)

Utusan to develop its plot of land in KL
Utusan Melayu wholly-owned unit, Juasa Holdings SB, has gone into a joint-venture agreement with Insan Tiara SB, to develop an eight-storey building with sub-basement and two floors of car park on a plot of land in Kuala Lumpur. The proposed project will help it gain rental income from the property, the media house said in a filing to Bursa Malaysia last Friday. The construction costs will be fully borne by Insan Tiara. The market value of the property together with land alienated for the road reserve to be developed is estimated to be RM6.8m. (Malaysian Reserve)

MAHB puts off new rates on govt advice
Malaysia Airports Holdings Bhd (MAHB) has put on hold the proposed implementation of new rates for the international passenger service charge and also aircraft landing and parking charges. MAHB said on Friday, 9 Sept, it was advised by the Transport Ministry that the charges, which were to be implemented on 15 Sept, “be put on hold until further review by the government”. (Financial Daily)


Prime Minister Datuk Seri Najib Razak has called on telecom companies to rethink their move to impose a 6% service tax on all prepaid sales, calling the levy “difficult to accept” given rising cost of living.
• “The reaction and feedback from the public is that the move by telcos is... unpopular and difficult to accept."
• He also denied that the telcos have sought finance ministry approval as “the decision was made by the telcos themselves.”
• The 6% was announced yesterday in a joint statement by the telecommunication players, who insisted that it was not a new tax but had been absorbed by telcos since it was introduced in 1998. (The Malaysian Insider)

Perodua expects the  new Myvi 1.5 to contribute to about half of the monthly sales of 8,000 units of the Myvi model. The new Myvi 1.5 will be available at all 178 Perodua showroom nationwide from Sept 15, said Managing Director Datuk Aminar Rashid Salleh. "This new 1.5 Myvi is currently exclusive to the Malaysian market and is aimed at young and urban executives who want a car which is sporty and premium," he added. (Bernama, BT)

Petronas will soon unveil a strategic tie-up with a British sports-car maker as it ramps up its lubricants and other fluid business to become one of the world's top five players by 2016. Petronas has also approved a RM209m budget to set up a new R&D centre at its lubricant manufacturing facility in Italy. The centre is expected to be ready by 2015 and will be one of Europe's largest, if not the largest. (BT)

Volvo Malaysia has appointed Mansoor Ahmed as managing director,  taking over from Eric Leblanc. Prior to the appointment, Mansoor was vice-president of vehicle sales and marketing of Asia trucks operations, based in Beijing, China. Volvo said Mansoor has over 25 years' experience in the car industry. He joined Volvo Group in India in 1997. He had earlier worked with Tata Motors for 12 years. (Bernama)

MalaysianBiotechnologyCorp (BiotechCorp) says five more foreign biotechnology companies are planning to invest millions of ringgit at  BioXcell at Nusajaya. The development of facilities at BioXCell and the investments from companies will add up to RM10bn.
• BioXCell, a biotech park on 32.37ha in SiLC is being developed by Malaysian BioXCell of which  UEM Land holds 40% equity with the remaining 60% held by Biotech Corp. (Star Biz)

Laos, Thailand to boost Maybank’s regional foothold
Malayan Banking Bhd (Maybank), which launched its refreshed logo yesterday, is implementing plans to become a regional player with the latest expansion in Laos and Thailand. Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said Maybank has applied for a banking licence in Laos and hopes to open the first branch next year. The country's largest banking group already has two branches in Vietnam and a 20 per cent stake in An Binh Bank. "We plan to expand retail banking in Thailand, but we are already the number one brokerage there via Kim Eng (Holdings Ltd)," he told a news conference after the launch of Maybank's new logo by Prime Minister Datuk Seri Najib Razak yesterday. (Source: Business Times)

K-Euro sews up WCE deal, finally
K-Euro is close to signing a concession agreement with the government to build and operate the RM6b West Coast Expressway. The financial close for the highway is expected to be completed by next month. It is learnt that K-Euro, in which construction giant IJM Corp. has a 22.72% stake, has finally agreed on the alignment of the highway with the Perak and Selangor governments, which has cleared  the path for the dealing of the deal. (Source: The Edge)

Syabas seeks RM1.05b from Selangor government
Syarikat Air Selangor Sdn Bhd has filed a statement of claim for RM1.054 billion on the Selangor government as compensation under the terms of the concession agreement. PUNCAK NIAGA HOLDINGS BHD said on Friday, Sept 9 the compensation was due to it from Jan 1, 2009 to March 31, 2011 under the concession agreement dated Dec 15, 2004. The agreement was between Syabas, the Federal Government and the Selangor Government. It said Syabas was seeking a declaration that RM1.054 billion was due and owing from the Selangor government from January 2009 to March 2011. (Source: The Edge)

Rozali denies Puncak takeover
IMDB is looking into a partial privatisation of Indah Water Konsortium. Puncak Niaga Holdings Bhd executive chairman Tan Sri Rozali, however, denies that Puncak is also a takeover target. An online news portal reported that both IWK and Puncak Niaga would be taken by IMDB and that the takeover had received the blessings of the National Economic Advisory Council, which is chaired by Prime Minister Datuk Seri Najib Razak. (Source: The Edge)

Gas Malaysia gurantees dividends in first 2 years
Gas Malaysia Bhd will pay a guaranteed dividend of 100 per cent  and 75 per cent in the first two years, respectively, after floating its shares on Bursa Malaysia in December this year. MMC Corp Bhd group managing director, Datuk Hasni Harun said Gas Malaysia is on track for a listing as part of MMC's strategy of unlocking value and reducing debt. "The dividends are also to reward shareholders' loyalty over the years," Hasni told Business Times in an interview last Friday in conjunction with MMC's 100-year anniversary. (Source: Business Times)

Hunza to pay out RM10m for late delivery of condos
Hunza Properties Bhd will pay out RM10m compensation to about 100 buyers of units at its Gurney Paragon condominium due to late delivery. The project located in Gurney Drive in Penang has a gross development value (GDV) of RM480m and is part of the 4ha Gurney Paragon, a mixed development project comprising a shopping mall and the condominium. The 100 odd buyers had signed the sales and purchase agreements in stages from June 2007 when the project was launched. Completion was supposed to have been by June 2010. Datuk Khor Teng Tong, group executive chairman, said the completion was delayed due to reasons beyond Hunza’s control. A stop work order was issued by the Penang Island Municipal Council (MPPP) when an access road next to the project caved in. The certificate of occupation was finally obtained in June this year.
At a recent press briefing to announce Hunza’s results for FY11 ending June 30, Khor said more than 70% of the 220 units have been taken up, half by foreigners mostly from  Singapore, Hong Kong, hanghai and Indonesia. (The Edge Property)

Johore Tin wants in on fast-growing dairy industry
Tin can manufacturer Johore Tin Bhd (JTB) has witnessed the growth of its customers involved in dairy products, in particular the condensed milk segment. Last month (JTB) announced a proposed acquisition of its customer, Able Dairies Sdn Bhd, a company involved in the business of manufacturing and selling ofmk and dairy products, for RM31m (RM27m in cash and RM4m in JTB shares). (The Edge)

Tatt Giap unit to venture into steel fittings
Tatt Giap Group Bhd’s unit is acquiring a total of  5.1 ha of land in Seberang Perai, Penang for RM18.80m to expand its pipes production and also venture into stainless steel fittings. Its unit Superinox Pipe Industry Sdn. Bhd had signed an agreement to acquire two plots of land 2.01 ha and 3.09 ha with the office block and double storey factory buildings from GUH Electrical Appliances Sdn Bhd. The proposed acquisition is to cater for future expansion of stainless steel industrial pipes and venture into new business activity – manufacturing of stainless steel fittings. Tatt Giap said Superinox  would finance the acquisition from its own funds (10%) and bank borrowings (90%). (The Edge)

Indah Water Konsortium To Merge With Government Subsidiary Company
The government has decided to merge national sewerage company, Indah Water Konsortium, (IWK) with a government subsidiary company, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah. The decision was made recently by the National Economic Council. The move is an effort to strengthen both entities which is owned by the government. The biggest asset owned by IWK can be redeveloped and benefit the merged entity. IWK was expected to be privatised soon to a consortium led by strategic investment agency, 1MDB. (Bernama)

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