Thursday, September 29, 2011

20110929 1054 Malaysia Corporate Related News.

PNB makes surprise offer for SP Setia
Permodalan Nasional Bhd (PNB) launched a takeover to acquire SP Setia shares at RM3.90 per share and 91 sen per warrant in a surprise move that caught the SP Setia board unawares and spread concern through its senior management. Meantime, the SP Setia board responded in an announcement that it was seeking competitive offers because it felt that PNB’s offer undervalued the company based on external valuations of SP Setia by investment analysts published before the receipt if the offer. PNB said that its offer was conditional upon getting control of over 50% of the voting shares and that it intended to keep SP Setia’s listing status. Even if acceptances reached over 90% of the offer shares, it would not compulsorily acquire the remaining shares but would seek options to keep the company listed. (StarBiz) Please see accompanying report.

Petronas ventures into international power market
Petroliam Nasional (Petronas) made its maiden foray into the international power market with the signing of an agreement to acquire a 30% stake in GMR Energy Singapore Pte Ltd (GMRE). The national oil company said its wholly-owned subsidiary Petronas International Corp signed the deal for the proposed acquisition with GMR Infrastructure (S) Pte Ltd and GMR Infrastructure Ltd, both are units of India’s GMR group. GMRE is developing a 800MW combined-cycle gas turbine power plant in Jurong Island, Singapore. To be fuelled by re-gasified liquefied natural gas, the power plant will be designed and constructed by a consortium consisting of Siemens and Samsung. (StarBiz)

Digistar subsidiary lands 2 IPTV projects
Digistar Corporation’s subsidiary Digistar Rauland MSC SB has secured two separate contracts to implement IPTV services at two hospitals in the Klang Valley. Digistar said on Wednesday, 28 Sept that the two projects were to build and maintain the IPTV system for a period of ten years from date of completion. The company said the projects were expected to be completed within three months, and would be financed via internally generated funds. However, Digistar did not disclose the value of the respective projects. (Financial Daily)

Puncak acquires remaining 60% interest in Global Offshore, KGL
Puncak Niaga has acquired the remaining 60% equity interest in Global Offshore Malaysia SB and KGL Ltd respectively for RM110.68m. In an announcement to Bursa, Puncak Niaga said it made the acquisition via its wholly owned subsidiary Puncak Oil and Gas SB (POG) which had in May acquired 40% interest in Global Offshore and KGL respectively for RM72.2m. According to Puncak, the acquisition in May included the call option agreement between Global Asia Pacific Industries SB (GAPI) and POG to allow POG to acquire 49% equity interest in Global Offshore from GAPI. (Financial Daily)

Parkson gets greenlight for SGX
Parkson Retail Asia Pte has received a conditional approval from the Singapore Exchange Securities Trading Ltd to list on the Singapore bourse. Parkson Holdings said on Wednesday, 28 Sept that Parkson Retail had received the conditional eligibility-to-list (ETL) letter from the SGX-ST in relation to the proposed listing. “The ETL is subject to amongst others, compliance with the SGX-ST’s listing requirements. The ETL granted by the SGX-ST is not an indication of the merits of the proposed listing, the Parkson Asia group, or the shares in Parkson Asia,” it said. (Financial Daily)

Axis REIT buys Penang industrial land for RM59m
Axis REIT Managers is acquiring two pieces of industrial land near Bukit Mertajam, Penang for RM59m from Apex Properties SB. It said on 28 Sept, the first plot of land was 54,775 sq. m with land tenure of 60 years leasehold expiring on 22 Oct 2052. The second piece of land was about 0.0823 ha with land tenure of 60 years leasehold expiring on 19 May 2068. Axis REIT said the property was within the Bukit Tengah Industrial Park. It added that it intended to use a debt facility of about RM59m from Axis-REIT’s existing credit lines. The proposed debt financing will increase Axis-REIT’s gearing ratio to 39% of audited total assets as at 31 Dec 2010, which is below the gearing limit of 50% prescribed by the REIT Guidelines. (Financial Daily)

BCorp auto arm listing plan rejected
The Securities Commission has rejected the proposed listing of Berjaya Corp (BCorp)’s 80%-owned subsidiary Bermaz Motor SB (via Berjaya Auto Bhd) on the Main Market of Bursa Malaysia. BCorp told Bursa Malaysia in a statement that the rejection was due to a deficit in net operating cashflows of Bermaz Motor. “BCorp’s board of directors will deliberate on the next course of action, including but not limited to the restructuring of the proposed Berjaya Auto Group.” Bermaz Motor has been the official distributor of Mazda vehicles in Malaysia since early 2008.
On another note, BCorp has completed its acquisition China-based potable water producer and supplier DSG Holdings Ltd (DSGHL) for a consideration of USD25.97m (RM77.91m). BCorp told Bursa Malaysia that DSGHL would effectively become its 85%-owned subsidiary. (StarBiz)

DiGi  has teamed up with MY Evolution to launch Malaysia's first machine-to-machine  (M2M) mobile virtual network operator (MVNO) service. "The M2M business is marketdriven where MY Evolution as an MVNO can complement DiGi's strategy by offering  industry solutions," said DiGi's head of strategy and business transformation, Christian  Thrane. MY Evolution will ride on DiGi's infrastructure to provide end-to-end M2M  communications services. (Bernama)

The Government is considering unbundling Tenaga National (TNB)'s bills to consumers to  reflect charges related to generation, distribution and transmission. Energy, Green  Technology and Water Ministry (KeTTHA) deputy secretary-general Badaruddin  Mahyuddin said MyPower Corp had been assigned to study the unbundling of consumer  bills. Asked if the unbundling of TNB's accounts was the first step to break TNB up,  Badaruddin said,  
• "Not breaking up TNB but to show the public the effective cost from the three divisions - generation, distribution and transmission - (and) to help them to understand the cost.  Ultimately, maybe, but we are not sure. We will wait for the study from MyPower" he  said. (Starbiz)    

Three ex-Miami mayors have raised concerns that  Genting's proposed Miami supercasino plan will "gobble up public lands",  according to the Miami News. Opposition is  slowly growing in some quarters to the plan, including concerns cited over Genting's  alleged ties to an alleged organized crime individual. (Casino City Times)  

Kuala Lumpur Kepong  sold RM300m (US$95m) of Islamic debt yesterday, a person  familiar with the matter said. The sukuk, that pay returns from assets that comply with the  religion’s ban on interest, were priced to yield 3.88%, said the person, who asked not to be  named because the details are private. The price was within its revised yield guidance of  3.85 - 3.90% and attracted demand that exceed supply by about three times, the person  said. (Bloomberg)  

A home-grown technology using radio frequency identification (RFID), which will be  deployed in Royal Malaysian Customs' checkpoints nationwide, is likely to be adopted by  neighbouring countries soon. Smartag Solutions, the provider of the RFID, has received  the thumbs-up from several international and local logistics players who had participated in  its trial run, where participants were able to achieve a 50% reduction on time taken for  customs, contributing to cost savings. (BT)    

RHB Capital has asked for another six months (until April 19 2012) for the implementation  of a renounceable rights issue to raise RM1.3bn for the bank. (BT)

Malaysia Airlines (MAS) has won the “Asia’s Leading Airline” and “Asia’s Leading Airline  Lounge” awards at the World Travel Awards (Asia & Australasia) Ceremony. (Star Biz)  

AirAsia has invested over US$1m (RM3.16m) in cutting-edge airline management system,, to improve its operational efficiency. The system would optimize AirAsia’s  aircraft and crew utilization, making it possible for the airline to further improve its on-time  performance and minimize costs. (Bernama)

Berjaya Corp  has completed its acquisition of China-based potable water producer and  supplier DSG Holdings (DSGHL) for a consideration of US$25.9m (RM77.9m). DSGHL  would effectively become its 85%-owned subsidiary. (Starbiz)  

SEG International (SEGi) has taken a 9.08% equity stake in ACE Market-listed Eduspec  Holdings, which is involved in the development and provision of e-learning products and  educational services. (Financial Daily)  

BMW Group Malaysia expects to post its  ninth straight year of record sales in 2012.  Managing director Geoffrey Briscoe has projected a conservative growth of 10% for 2012,  but nevertheless hopes to be able to repeat its record performance of some 25% in the  premium car market. "We expect production to go up next year.  
• From 2,900 units, we increased to 5,000 units. The expectation of a double-digit growth  in sales efforts will also see a double-digit increase in production," Briscoe said. Given  the robust performance in Malaysia, BMW has earmarked Malaysia as the one of the  key growth markets of the future. (BT)    

Kulim Malaysia has raised its takeover offer for shares it does not own in Sindora Bhd to  RM3.10 a share. Kulim had initially offered RM3 a share for almost 10.9m shares in  Sindora. The closing date for the offer is October 18 2011. (BT)

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