Thursday, October 20, 2011

20111020 1028 Malaysia Corporate Related News.

Tenaga Nasional Bhd may report next year a full-year loss for the first time  in more than a decade because of rising costs.  The company this month will  post a second, straight quarterly loss as its rising fuel bill is hurting margins,  CEO Che Khalib Mohamad Noh said.  Tenaga may have to borrow to fund operational expenses for the first  time as its cash holdings are dwindling, Che Khalib said. “We have to  incur an additional cost of RM400m every month to use the alternative  fuel. We are crying for help. If the situation isn’t resolved, Tenaga will  report a loss in 2012.”  The utility is set to market its 4.85bn Islamic bonds on Oct. 24 to  finance the expansion of a coal-fired power plant in Perak, north of  Kuala Lumpur, he added. (Bloomberg)

Prime Minister Datuk Seri Najib Razak and Indonesian President Susilo  Bambang Yudhoyono are expected to discuss the waiver of  crude palm oil  (CPO) taxes in both countries.  If both leaders were to agree to this proposal  during  their bilateral meeting in Lombok, Bali today, oil palm planters in  Malaysia and Indonesia, and some six million smallholders, will benefit from  higher palm oil prices.  Current high CPO taxes in Malaysia and Indonesia have caused refiners  to slash prices in order to compete, and this, in turn, has lowered the  CPO prices.  "The leaders will deliberate on the proposal to lift the high  CPO taxes on both sides. It is on the agenda," a reliable source said.  (BT)

Proton  has offered the storage facility at its  Tanjung Malim plant to  automakers in Thailand affected by the flooding there. “We are open for  negotiations anytime,” its group manag­ing director, Datuk Seri Syed Zainal  Abidin Syed Mohamed Tahir said. On Proton’s operations in Thailand, Syed  Zainal Abi-din said the company’s 34 sales outlets in the country were not badly  affected. (Bernama)

UMW Lubricant International, a wholly-owned unit of UMW Holdings,  expects its newly-unveiled Repsol range of lubricants to capture 3% market  share by end-2012. "With Repsol, we can now penetrate into the high-end and  specialised vehicles segments. This will complement our existing brands, which  are more focused on the medium- and entry- level segments," said Datuk Syed  Hisham Syed Wazir president and group CEO of UMW Holdings. The company  plans to produce Repsol lubricants in Malaysia by as early as first-half next year.  (BT)

Nasim, the exclusive distributor of the  Peugeot brand in Malaysia, has  launched the Peugeot 508, marking a new chapter for both Nasim and the  Peugeot brand in the premium executive segment. The 508, with an on-the-road  price of RM169,888 has been billed as one of the most highly-anticipated  launches of the year and has already received over 100 bookings prior to its  launching. (Malaysian Reserve)

Tightening rice supply in top exporter Thailand due to floods and defaults by  Vietnam as prices jump could prompt Indonesia, Africa and the Middle East to  delay imports until the market steadies, or seek cheaper options from India and  Pakistan. International traders and government officials meeting in Vietnam  this week will also assess the full impact of flooding on output in the top two  exporters, whether prices will escalate further, and the demand outlook for  typhoon-hit Philippines. Thai and Vietnamese rice rose after the Thai government began buying  paddy from farmers on October 7 at 15,000 baht (RM1,520) a tonne,  nearly double local prices in June, and export rates climbed further as  Thailand’s worst floods in 50 years inundated farms and mills. Thai  benchmark 100 per cent B grade white rice hit US$680 (RM2,120) a tonne, while Vietnam’s 5 per cent broken rice rose to US$590 a tonne,  the highest in more than three years.
“Vietnamese rice prices will be stable at the current level till the  year-end as stocks are low,” said Nguyen Trung Kien, deputy chairman  of the Vietnam Food Association.
Thai benchmark prices could be pushed to around US$850,  exporters said, but traders and analysts did not expect levels to soar  above US$800 immediately, as some exporters would offer rice from  their stocks at lower levels. (Reuters)

Malaysia is looking to buy up to 3m tonnes of  raw sugar over a three-year  period starting in 2012 to replenish stocks, dealers said. Up to nine trading  houses were invited to offer prices last week, but no deals were struck, said the  dealers. They added that Malaysia wanted to buy the sweetener at below market  price. The country consumes about 1.3m tonnes of sugar a year. (Reuters)

Newcomer  Nilamas Corp has secured all the requisite licenses from the  government to offer digital cable TV in the country and it is targeting the launch  of its offering in 2Q12. Nilamas will compete in the pay-TV space, which has  Astro and several IPTV providers including Telekom. Nilamas planned to offer entertainment and education programmes  with an interactive focus. The company was also in talks with numerous  content providers but added that it might find it difficult to secure  content already sold to competitors. As for its network, Nilamas would use fibre for its back-haul which will  be leased from fibre operators such as TM, Time dotcom, Tenaga,  Fiberail and Fibercom. (Star Biz)

Felda Holdings has shortlisted 15 investment banks to undertake the listing  exercise of Felda Global Ventures Holdings (FGVH). The final decision will  be made this week. It is believed that four investment banks, comprising two  local and two international banks would be required to handle the IPO, to be  launched around mid next year. (Bernama)

Kurnia Asia is still in talks with interest parties regarding a possible M&A  following news in the last few months that the company was looking at selling  its insurance arm. Chairman,  Datuk Dr Sharifuddin Wahab said whether  the parties are local or foreign, Kurnia is alright (for negotiations) as long as it  gets an attractive deal at the end. (Financial Daily)

The Asia retail arm of  Parkson Holdings is planning to raise up to S$200m  (RM492m) in a Singapore IPO. Parkson Retail Asia, a department-store  operator with operations in Malaysia, Vietnam and Indonesia is looking to sell  shares at an indicative price of S$0.935 to S$1.07 each.  HSBC has been appointed the sole global coordinator and issue  manager for the offering.  CIMB and HSBC are the joint bookrunners  and underwriters, while CLSA is the co-lead manager. (Reuters)

The government needs to consider implementing a "temporary termination" on  the development of  new shopping malls in high-growth areas, said the  Malaysian Association for Shopping and Highrise Complex Management (PPK).  Its president HC Chan said there is an oversupply of shopping malls in the country, particularly in Kuala Lumpur, Selangor, Penang, as about 75% of the  malls in Malaysia are located in these areas. (Bernama, Financial Daily)

YTL Corp spent RM26.75m on a share buyback exercise yesterday. The  diversified flagship of the YTL group acquired 18.04m shares at RM1.48 a share.  (Malaysian Reserve)

Sinaria Corporation has proposed to seek approval from its shareholders to  purchase up to 10% of its own paid-up share capital. (BMSB)

AT Systematization announced that its wholly-owned subsidiary,  Automation Technology Systematization Industries Limited (ATSI) located at  Pathumthani, Thailand, has temporarily shut down the operations of its  manufacturing facilities from Oct 13 due to the unexpected severe flood  condition in Thailand.  Presently, the premises of ATSI are not affected by flood but have been  forced to shut down as its workers were unable to turn up for work due  to the crippled transportation system. (BMSB)

Sozo Global Ltd is investing RM15m to set up a halal processing plant in  Malaysia, says CEO Shen HengBao. The company hopes to conclude land  acquisition by year-end and the plant construction will start in early 2012. Sozo  is still looking to identify a location that has access to ports and workforce, as  well as the assistance of the authorities, he told reporters at a media briefing  yesterday. It is likely that the plant would be located in Penang. Sozo has signed a  MOU with the Malaysian Halal Development Council. Shen said the  company is currently setting up its third plant in China, specifically for  halal products.(Bernama)

Wijaya Baru Global (WBG), which has clinched a deal to log and clear  80,000 hectare of land in Indonesia to make way for an oil palm plantation, will  seek partners for the cultivation venture. CEO Datuk Faizal Abdullah said the  company is in talk with Malaysian entities for a possible joint venture. (BT)

Hai-O Enterprise Bhd expects a better performance for the financial year  ending April 30, 2012, with the anticipation of better sales for its core products  in the health, beauty and fashion range. Managing Director Tan Kai Hee said  Hai-O was confident earnings would improve despite the multi-level-marketing  (MLM) industry being highly regulated by the government. The company would  focus on products that would give the company recurring sales over the  long-term and revamp its marketing programmes.  Tan also said the implementation of stricter new membership  guidelines in the MLM industry had resulted in less new members and  lower revenue and earnings. "We have also been revamping our  marketing programmes to emphasize on product knowledge," Tan said.  (Bernama)

Bonia unit buys Cheras properties for RM44.29m
Bonia Corporation is acquiring properties in Cheras for a total of RM44.29m to facilitate its future expansion plans and to reduce rental expenses. It said on Wednesday, 19 Oct that its wholly owned subsidiary Luxury Parade SB had entered into 15 sale and purchase agreements with Platinum Starhill SB to acquire freehold units in two blocks in Cheras. (Financial Daily)

Lynas in the dark over licence decision
Lynas Corp said yesterday it was not aware of any decision by the Malaysian authorities not to grant the company pre-operating and import licences of rare earth into the country. It told the Australian Securities Exchange that as far as it was concerned, the decision on the licences was not expected in some weeks. "As far as Lynas is aware, no decision has been made by the Malaysian authorities concerning the pre-operating licence and the importation of rare earth ores into Malaysia," it said in the filing. The International Trade and Industry Ministry and the Science, Technology and Innovation Ministry, in a joint statement on Monday, said Lynas had not been issued a licence nor given permission to ship rare earth ores into Malaysia. (BT)

Lynas is already producing rare earths concentrate at Mount Weld in Western  Australia but  the group’s refinery on the east coast of Malaysia “is  running a bit late”. Crucial to Lynas entering production is for the Malaysian  government to issue the Australian group with an operating licence. That  process has been bogged down by political opposition to the plant and local  community protests worried about possible radiation leaks. Lynas on  Wednesday said a decision had not been reached on the application. Shares in  the company fell 9.9 per cent to A$1.09 in Sydney.  The International Atomic Energy Agency this year conducted an  independent review into the plant. “They came out and said it was a safe  process and made some recommendations that Lynas has agreed to  comply with,” according to the executive chairman, Nick Curtis.  Assuming approval is granted in the coming months, Lynas could ship  first product in the second quarter of next year. (Financial Times)

Kencana expands Lumut yard
Kencana Petroleum is in talks to acquire more than 130 acres beside its fabrication yard, in Lumut Perak, sources said. It is understood that Kencana is close to sealing the deal, which could see the company substantially increase its yard space to enable it to take on larger jobs. It is still not clear which parties Kencana is in negotiations with, but among its neighbours is Lumut Maritime Terminal SB (LMT), whch is 50% plus one share controlled by the Perak government. (Financial Daily)

Harvest Court MD to buy Affin stake
Harvest Court Industries Bhd managing director Ng Swee Kiat has submitted a proposal to buy Affin Bank Bhd’s stake in the group at 20 sen per share. In a filing to Bursa Malaysia, the group said Ng, its second-largest shareholder, has proposed to buy Affin’s 31.4 million shares and 7.9 million warrants through a put option agreement. Currently, Affin is Harvest Court’s biggest shareholder with a 18.27% stake in the group. (StarBiz)

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