Tuesday, September 20, 2011

20110920 1039 Malaysia Corporate Related News.

BDRB to sell four assets for RM914m
Bandar Raya Development (BDRB) has decided to part with four investment properties, including its crown jewel BSC, a preliminary cash consideration of RM430m with net liabilities of RM484m to be assumed by the buyer, valuing the entire transaction at RM914m. BRDB CEO Datuk Jaganath said the board has decided to accept the recent offer from its major shareholder Ambang Sehati SB to acquire four properties. They are BSC and Menara BRDB in Bangsar, CapSquare Retail Centre in KL and Permas Jusco Mall in Johor Bahru. (Financial Daily) Please see accompanying report

BCorp to raise RM767m
Berjaya Corp (BCorp) has proposed a renounceable rights issue of up to RM767.5m nominal value of new irredeemable convertible unsecured loan stocks with up to 767.5 m warrants. BCorp told Bursa Malaysia yesterday that the issue would be on the basis of one RM1 nominal value loan stock and one warrant for every six BCorp shares. The coupon rate is 5% a year. The proposed rights issue is undertaken primarily to enable the group to raise funds to part repay bank borrowings while the proceeds of the warrants would be used for working capital of BCorp group. (StarBiz)

Kimlun gets RM51m contract from Nusajaya Lifestyle
Kimlun Corp‟s unit has accepted the letter of award for a RM51m contract from Nusajaya Lifestyle SB to build a retail mall and ancillary buildings in Medini Iskandar, Johor Bahru. It said on Monday the scope of works comprises building construction and ancillary works for the Mall, which is due to be completed by July 2012. “The contract is expected to contribute positively to the earnings and net assets of Kimlun Group for the financial years ending 2011 to 2012,” it said. (Financial Daily)

Sime Darby in the limelight again
Sime Darby and Eastern and Oriental (E&O) continue to make the news as both their share prices moved again in opposite directions on speculation that the former will launch a general offer (GO) for the latter's shares. Sime Darby declined by 30 sen, seeing about RM1.8bn of its market capitalization wiped out, while there was active trading in E&O shares, which ended the day 2 sen up. The SC, which is looking into whether Sime Darby would be required to conduct a GO for the rest of the shares in E&O after buying a 30% block in the latter (at a 60% premium to market), has yet to make a decision on the matter. Meanwhile, major shareholder and part seller of the 30% block of E&O shares, Tan Sri Wan Azmi Wan Hamzah, said that there was absolutely no agreement or understanding between himself and Sime Darby on how he would exercise his voting rights on the remaining E&O shares he owns.
In other news, Sime Darby Industrial SB (SDI), which has an order book of RM3bn, is in talks to buy Bucyrus International. SDI executive vice president Scott William told the media yesterday that the company was currently in talks with Caterpillar, the owner of Bucyrus International, for the acquisition of the distribution assets. He said Sime Darby might announce the deal by the end of the year, adding that the acquisition would enable Sime Darby to extend the range of its products to cover both surface and underground mining equipment. (StarBiz, Financial Daily)

Thai AirAsia puts off IPO to 1Q next year
The Thai unit of Malaysia's AirAsia Bhd has delayed an initial public offering (IPO) of its shares to 1Q2012 from 4Q, its financial adviser said yesterday. The delay is because it needs more time to restructure its organization and conduct due diligence. Earlier this year, Thai AirAsia said it planned to raise up to USD200m (RM622m) from the IPO in Bangkok in the fourth quarter and the proceeds would be used partly for cash reserves and to repay debt. (Financial Daily)

Malaysian Airline System Bhd : MASkargo looks into possibility of collaborating with AirAsia Cargo
MASkargo, the air cargo subsidiary of Malaysian Airline System Bhd (MAS), is looking into the possibility of collaborating with AirAsia Cargo soon to create better synergy between the two companies. Managing Director Shahari Sulaiman said the collaboration would bring a positive impact to the cargo industry in Malaysia, domestically and regionally, due to the current rapid economic growth in the region. Shahari said the new freighters would allow MASkargo greater flexibility to develop new trade lanes between Asia, Europe and Australia which may not be viable using a bigger capacity aircraft. The A330 freighters are forecasted to increase MASkargo’s freighter capacity in 2012 by about 25.0%. – Bernama

Will Tenaga Nasional be split up?
Speculation of splitting Tenaga Nasional Bhd (TNB) up has resurfaced as the utility company faces an additional RM3bil in costs from having to look for alternative sources of fuel for power generation due to a shortage in gas supply. However, TNB president and chief executive officer Datuk Seri Che Khalib Mohd Noh did not respond  to StarBiz query on the matter. Analysts said there were a number of obstacles that would make any break-up  of the company unlikely at the moment. They pointed out that fixed energy prices and power-purchase agreements signed with the independent power producers were among the main reasons why there would not be any imminent split-up. (Source: The Star)

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