Wednesday, September 21, 2011

20110921 1011 Malaysia Corporate Related News.

MAHB, Nagamas in JV for China airports services
Malaysia Airports Holdings and Nagamas International have, via their respective wholly-owned subsidiaries, entered into a JV for the joint provision of airport operation, management and technical consultancy services for the Yongzhou Lingling Airport and other airports in China. The subsidiaries, Malaysia Airports Consultancy Services SB and Nagamas Enterprise (HK), will contribute 60% and 40% of the working capital for the JV company respectively. (Malaysian Reserve)

Petronas calls for tender in Mozambique
Petroliam Nasional is calling for tenders to select a company to conduct a study to find a suitable drilling site in tis concession in the Rovuma Basin, off the coast of Cabo Delgado province in northern Mozambique. Petronas Carigali SB, the corporation‟s exploration and production subsidiary, has gathered and processed 2D seismic data covering an area of 7,000 sq km and these need to be interpreted to locate the best spot to drill for oil and gas. (Malaysian Reserve)

Uzma bags seismic data contract from Carigali
Uzma‟s wholly-owned unit, Uzma Engineering SB, has secured a contract from Petronas Carigali SB for the provision of marine 2D and 3D seismic data services. The contract is effective from 18 Aug for a period of three years, with an extension option of two years. The value of the contract was not revealed. (Malaysian Reserve)

CIMB’s Thai unit expects loans to meet target
CIMB Thai Bank expects lending to expand 20% in 2011, meeting its forecast. CEO Subhak Siwaraksa said that Thai companies have very strong demand for new loans to fund their expansion; the increased lending in the second-half will help offset lower-than-expected growth in the first eight months when loans expanded approximately 15%.(Malaysian Reserve)

EFB subscribes to RM7m shares in CMTP
Evergreen Fibreboard (EFB) has entered into a share subscription agreement with Craft Master Timber Products SB (CMTP), to subscribe to 7m ordinary shares of RM1 each, equivalent to 51% of capital in CMTP. EFB is of the opinion that there is a demand for finger-jointing and solid furniture parts, which will help strengthen and consolidate its objective of becoming one of the most comprehensive wood based producers in this region. (Malaysian Reserve)

Alam Maritim bags RM22m contract
Alam Maritim Resources bagged its second contract for September with a RM22.1m contract for the provision of a straight vessel to a local oil and gas firm. The company said the contract is expected to positively contribute to earnings and net assets of Alam Maritim for FY11 and beyond. (Financial Daily)

Bandar Raya Developments Bhd : Asset sale may face shareholder hurdle
Bandar Raya Developments Bhd (BRDB) may have a tough time convincing minority shareholders to approve a major asset sale as the offer was below book value and it is not using the bulk of the proceeds to replenish land. On Monday, BRDB agreed to accept a RM914.0mil offer from major shareholder Ambang Sehati Sdn Bhd to buy four properties from the group. The assets have a book value of RM942.0mil. Ambang Sehati is buying CapSquare Retail Centre, Permas Jusco Mall and all of BR Property Holdings Sdn Bhd, which owns Bangsar Shopping Centre (BSC) and Menara BRDB. Ambang Sehati, which owns 18.8% of BRDB, is controlled by Datuk Mohamed Moiz Jabir Mohamed Ali Moiz, who is chairman of the property firm. It proposes to pay a preliminary cash payment of RM430.0mil and assume RM484.0mil in liabilities related to BSC and Menara BRDB. Following the proposed disposal, BRDB plans to distribute RM390.0mil from the assets sale to shareholders via a net cash dividend of 80 sen apiece, and use RM302.0mil to pare down debt.
– Business Times

MISC Bhd : Moody’s downgrades MISC on weak outlook
Moody’s Investors Service has downgraded the issuer and senior unsecured ratings of MISC Bhd, the world’s single largest owner-operator of liquefied natural gas tankers, to Baa1 from A3 with a negative outlook, affecting about US$700.0mil of debt. According to Moody’s, the prolonged weakness in MISC’s credit metrics, operating losses in its liner, chemical and petroleum segments, and large capital expenditure plans amidst a difficult operating environment, had triggered the review for downgrade initiated on June 27. The downgrade encompasses the change in MISC’s stand-alone rating to Ba1 from Baa3 while maintaining a three-notch uplift based on strong parental support from Petroliam Nasional Bhd with A1/stable ratings. – StarBiz

Malaysian Resources Corp Bhd : Ahmad Zaki leaves MRCB
Malaysian Resources Corp Bhd (MRCB) executive director Datuk Ahmad Zaki Zahid will resign from his post in the property company effective Oct 15. According to a filing with Bursa Malaysia yesterday, Ahmad Zaki was appointed an independent director of MRCB on Jan 12, 2005 and subsequently re-designated as an executive director on May 4, 2009. In late 2009, there was talk that Ahmad Zaki would replace MRCB group MD Shahril Ridza Ridzuan at the helm of the company. At the time, the latter was tipped to become chief investment officer of the Employees Provident Fund (EPF). However, after Shahril Ridza had left MRCB to join EPF – he is now the fund’s deputy CEO (investment) – Datuk Mohamed Razeek Hussain became MRCB’s CEO. – StarBiz

Automotive Sector Industry outlook remains positive
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said despite growing concerns about the global economy, the outlook of the domestic auto industry still “looks positive”. She said the supply chain issues after the tsunami and earthquake in Japan have been resolved and that orders have strengthened. In view of the economic uncertainties, she notes that MAA has trimmed the forecast on total industry volume (TIV) for the second half of the year. The forecasted growth will move slightly downward in 2H from 618,000 units to 608,000. – The Edge

In the last two years,  Xingquan International Sports Holdings Ltd has re-modelled itself  to become an outdoor casual wear company. It has taken on the Gertop brandname and  now competes directly in  the China market with American labels like Jeep and Camel.  "Last year, we have the point-of-sales makeover expenses as part of our Gertop brand upgrade initiative. Expansion of sales network and other distribution expenses amounted to  over RMB150m," say Chairman Wu Qingquan.  He said the company plans to focus on  growing its business in China.  
• "We hope to increase another 200 to 250 stores each year, for the next two years,  subject to fund availability."  It plans to expand into five new provinces; namely Shaanxi,  Gansu, Qing Hai, Ningxia and Guizhou. Its Gertop stores are typically located in popular  shopping areas within first-, second- and third-tier cities in China.(BT)

Speculation of an impending rights issue by Eastern & Oriental has been put to rest by  the company. “E&O is not planning a rights issue,” Eric Chan, deputy MD of E&O, said in  an email reply. Talk of a rights issue surfaced recently after Sime Darby Bhd had emerged  as the single largest shareholder of E&O after buying a 30% block in the latter from three  major shareholders. It was speculated that the rights issue was to fund the land  reclamation works for E&O's Seri Tanjung Pinang project in Penang. If a rights issue were  to have been called, there would have been the likelihood of Sime Darby taking up more  than its entitlement. This, in turn, could lead to the plantation giant crossing over the 33%  shareholding mark, thus triggering a mandatory general offer (MGO) for the rest of the  E&O shares. However, now that E&O has denied that it is proposing a rights issue in the  near future, Sime Darby's stake in E&O is likely to remain status quo. (Starbiz)  

There are more big government-controlled assets that may be floated on the stock market  it seems. At the recent Forbes Global CEO Conference in Kuala Lumpur, Deputy Prime  Minister Tan Sri Muhyiddin Yassin said there would be several big initial public offering (IPOs) in Malaysia in the coming years. One government asset that had been slated for an  IPO but never materialised is Felda Holdings. (Starbiz)  

Malaysia's biggest independent power producer (IPP), Malakoff, may build another power  plant in Johor to meet future power demands of the state. A source said the plant will be  located in Johor to supply power to existing industries, but priority may be given to the  upcoming petrochemical complex to be built by Petroliam Nasional Bhd (Petronas). "Part  of the power plant will supply to existing oil and gas activities, help meet Petronas'  expansion of its petrochemicals business and further spur the growth of Malaysia's oil and  gas downstream sector," the source said.  (BT)    

Tenaga Nasional  bought 105,000 tonnes of October-delivery fuel oil  and is expected to  continue purchasing steady volumes until next year, industry sources said. This is the  firm's largest import in a single month since it started buying large quantities of fuel oil in  the second quarter, due to natural gas shortages that have resulted in the country's power  sector receiving a third less of its allocation from Petronas. (Reuters)  

MTD Capital, which made its maiden venture into the Indonesian port business in 2008,  aims to recoup its US$42m (RM132m) investment in five years, says CEO Datuk Azmil  Khalili Khalid. He said the new port business holds enormous potential for the group due to  Indonesia's position as the world's number one producer of coal and palm oil. MTD, which  opened its port for business yesterday, was offered by the Indonesian government to  upgrade the port, now called PT Cigading International Bulk Terminal, in 1995.  (BT)

The Malaysian Franchise Association (MFA)  expects the number of local franchise  companies establishing their business overseas to grow 10%. A main committee member  of the MFA, Abdul Rahman Mohamed said 10% was the minimum target, with 39  companies currently operating in 51 countries. "The food and beverages sector and  education business will have the most potential in  expanding its business overseas," he  said after a media briefing on the upcoming Malaysian Franchise Awards 2011, here  yesterday. To date, businesses such as Nelson Franchise (M) Sdn Bhd and Daily Fresh  Food Sdn Bhd have expanded to 17 nations.On the other hand, Indonesia and China host  the most Malaysian franchise companies at 18 and 14, respectively. (Bernama)  

San Miguel Corp may invest up to US$1.2bn to upgrade and expand the oil refinery and  retail station network it acquired from Exxon Mobil in Malaysia last month. "The estimate,  although it's still a very preliminary one, is something between US$800m to US1bn to  upgrade the Malaysian refinery," said Eric Recto, president of San Miguel's Philippine oil  refining arm Petron Corp. "The network expansion project could be another US$200m."
• "We see the potential in Malaysia and we have to develop that potential the way we saw  the potential in Petron," Recto said, adding there were no plans to merge the group's  Philippine and Malaysian oil businesses. “We are a smaller player (in Malaysia) but we  intend to be a strong, secondary player in that market. We think we will continue to grow  from a consumption standpoint". (Reuters)  

AirAsia Bhd said its Thai unit's initial public offering is on track to take place in the fourth  quarter. "AirAsia Group would like to state and confirm that the newsflow is incorrect and  that the IPO is still scheduled for 4Q11 listing,"  a spokesperson for the airline said in a  statement. (Reuters)  

AirAsia Bhd has entered into a joint venture with  Tune Money Sdn Bhd (TMSB) in  relation to the launch of a customer loyalty programme and pre-paid card services under  the brand 'BIG'. Under the JV, the new company will own, launch, market and operate the  Loyalty Programme and AirAsia will issue loyalty points, which shall be sold to the jointventure company at RM0.01 per point. "The loyalty points shall be managed and  distributed by the joint-venture company to AirAsia customers and third-party  merchants."The loyalty points are to be collected and used to redeem AirAsia flights by the  company's customers and third-party merchants," AirAsia said. (BT)

Asdion Bhd has signed a contract with Synergy Technology & Engineering (Shanghai) Co  Ltd for the Shanghai Hua Min Sofitel Hotel project worth approximately  RM3.1m.  The  contact was signed by its subsidiary, Asdion Exim (Shanghai) Co ltd. Asdion said the  contract, for the supply and commissioning of a hotel room control system, is slated to be  completed by the first quarter of next year. The company said, "The project is expected to  contribute positively to the earnings and net assets of the group for the financial year  ending March 31, 2012." (BMSB, BT)

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