Friday, December 9, 2011

20111209 1013 Malaysia Corporate Related News.

Bumi Armada, AirAsia replace Gamuda, MISC in KLCI
Bumi Armada and AirAsia will replace Gamuda and MISC in the FTSE Bursa Malaysia KLCI after the FTSE Group’s semi-annual review yesterday. PLUS Expressway will be removed from the index after its delisting, to be replaced by UEM Land Holdings on 13 Dec, the FTSE Group said in its press release. (Malaysian Reserve)

General Motors to revive partnership talks with Proton
General Motors has begun talks with Proton Holdings to form a manufacturing venture in the South-East Asian country, according to two people familiar with the matter. The discussions will revive negotiations that were scrapped in 2007, said the people, who asked not to be identified because the talks are confidential. The talks are preliminary and may not lead to an agreement, they said. (Malaysian Reserve)

Axiata: Celcom gets Aussie partner
Broadcast Australia will ink a deal on Monday to be Celcom Axiata Bhd's technical partner ahead of a bid for the much awaited RM2bn digital terrestrial television broadcasting (DTTB) project. This comes as a surprise to many in the industry as Telekom Malaysia (TM) was known to have been in talks with Broadcast Australia for a long time for a similar tie-up. The agreement between Celcom and Broadcast Australia, which operates an infrastructure network for broadcasters and telecommunications providers in Australia, is exclusive. (StarBiz) Please see accompanying report

DRB-HICOM, SAAB seal strategic partnership in defence, aerospace
DRB-HICOM and SAAB AB yesterday signed an industrial cooperation teaming agreement to forge collaboration in a bid to supply Airborne Early Warning and Control System for the Royal Malaysian Air Force. The former said through this programme, the integration of Saab’s Eyerie Radar and the incorporation of the “Eye in the Sky” will provide a significant data link to the Royal Malaysian Navy and Malaysian Maritime Enforcement Agency. (Malaysian Reserve)

Kencana unit lands RM1bn fabrication contract from Bechtel
Kencana Petroleum’s unit, Kencana HL SB, has secured a RM1bn contract from Bechtel International Inc for the fabrication and assembly of a liquefied natural gas (LNG) processing facility in Australia. Kencana said on Thursday that the contract scope included fabrication, assembly, testing and loading of process equipment modules for Wheatstone Project LNG Plant Facility located at Ashburton North, Western Australia. (Financial Daily)

Hektar REIT to purchase Kedah malls for Rm181m
Hektar Real Estate Investment Trust is buying two malls in Sungai Petani and Kulim, Kedah, for RM181m. The Central Square in Sungai Petani and Landmark Central in Kulim are leading malls in their respective areas. Both malls are strategically located in prime spots, have a good tenant mix and ample room for growth and expansion, it added. Central Square currently has a high occupancy rate of 96%, while Landmark Central in Kulim, being a relatively newcomer, has 77%, it claimed. (BT)

Bumi Armada's subsidiary, Armada TGT Ltd, has signed 7-year loan  agreements worth US$341.1m (RM1.08bn) with seven banks to finance the  deployment of its FPSO vessel Armada TGT 1 in Vietnam. The banks are Sumitomo Mitsui as the coordinating bank, mandated lead arranger, facility  agent, security agent and account bank. The other mandated lead arrangers are  CIMB,  ING Bank N.V,  Maybank,  OCBC,  RHB and  Bank of  Tokyo-Mitsubishi. Armada TGT 1, now operating in Block 16-1 of the Te Giac  Trang field for the Hoang Long Joint Operating Company, achieved first oil on  22 Aug. (Star)

CIMB Group Holdings Bhd is not looking to buy Thailand's Phatra Securities,  sources said, culling rumours of its purported interest. One of the sources said  the banking group had indeed eyed Phatra, one of Thailand's top three brokers,  some time ago but then decided to go with the smaller Sicco Securities. "It was too expensive," the source added. CIMB in Sep announced plans  to buy 70% of Sicco for about 767.9m baht in a bid to have a stronger  share of the Thai securities market. (BT)

Sime Darby's 2012 earnings and beyond is not expected to be adversely  impacted by the economic uncertainties in the West because of  palm oil's  position as a main food item.  Sime Darby derives up to 70% of its income from plantations. Sime  Darby chairman Tun Musa Hitam said the economic woes in the United  States and Europe were not expected to be much of a problem to the  conglomerate as long as crude palm oil prices continued to be firm,  supported by demand from developing economies.  "You cannot go wrong when you are producing food. Furthermore, the  emerging economies of China and India and the Southeast Asian region  will cushion the economic slowdown in the West," Musa added. (BT)

DRB-Hicom has denied any knowledge of a bid for Proton Holdings and of  plans to sell a stake in Proton to Volkswagen AG. Meanwhile, Bloomberg  reported that Volkswagen had no plan at the moment to expand operations in  Malaysia beyond a partnership with DRB-Hicom. (Starbiz)

Tan Sri Tony Fernandes has denied he will resign as  AirAsia boss soon,  pointing out that he had only told reporters the airline must prepare for new  leadership. “Not resigning from AirAsia. All I said is next 10 years we must  prepare for new leadership and my time is coming up soon. First a CEO for  Malaysia and I focus on group functions as group CEO. Good leadership is to  prepare for succession. Not going anytime soon though,” he said. (Malaysian  Insider)

Gamuda said the closing of the tender for the Klang Valley mass rapid transit  (MRT) underground works may be extended from early January 2012. Its  managing director Datuk Lin Yun Ling said to his knowledge the only local  entity bidding for the underground contract is MMC-Gamuda while the rest are  foreigners.  "It will take another three to four months for technical evaluation, and  MRT Co will do it (announce the winning bid," he said. He also has "no  clue" what are the profit margins for the MRT project, which is expected  to be completed over two phases. (Financial Daily)

Talk Focus, the newest mobile virtual network operator (MVNO) in the  country, is targeting at least 100,000 subscribers by end-June 2012. It will  provide the mobile phone services like voice calls, text messaging and other  value-added services via DiGi.Com's network.  Customers of its mobile services under the brand Tron will be able to  use their phones to shop for items and obtain discounts at selected  retail outlets. This is on top of the typical things most users do: making  phone calls, sending text messages and surfing the Internet.  "Our services will be a first of its kind... it's going to be revolutionary.  We have a telecommunication business as well as retail business. We  work with merchants somewhat similar to Groupon, but it is a different  experience altogether," CEO Steven Loke said (BT)

Bonia Corp Bhd will be spending between 5-10% of its revenue for its  expansion in Indonesia and Vietnam next year, MD Albert Chiang said. Three  months ago, Bonia opened its first boutique in Jakarta, and to date, it has 35  Bonia counters at some malls' department stores there. "So far, the response  from the consumers  there is very encouraging, and we want to focus on this  market substantially next year," he said after its AGM yesterday.  Apart from Indonesia, the company is also rebuilding its retail base in  Vietnam after the fallout with its previous partner. "Our biggest markets  would continue to be Malaysia and Singapore, and with the current  condition in Europe, we will continue with our focus in the Asian  countries," he said. Its presence in Saudi Arabia has also taken off well, said group finance  director Chong Chin Look, adding that it recently appointed a new  distributor under a five-year contract. He said the company hopes to  penetrate the United Arab Emirates market and other Middle
Eastern  countries such as Kuwait and Qatar in the near future. (BT)

Benalec Holdings has entered into a MoU with Singapore-listed  Rotary  Engineering to study the feasibility of reclaiming 250 acres of land in Tanjung  Piai, Johor for a storage terminal with an initial one million cu m capacity. A  joint-venture company would be set up should the study results in a positive  outcome. (Star Biz)

Boustead Holdings subsidiary Boustead Naval Shipyard has been awarded a  RM62m contract by the Government for the supply and delivery of spare parts,  maintenance, integrated logistic support and  training for the 17 th patrol vessel  squadron of The Royal Malaysian Navy. The contract was from June 7, 2011 to  June 6, 2014. (Star Biz)

Melewar Industrial Group (MIG) signed a MOU with Kazmy Steel Company  of Kazakhstan in which MIG is to be the turnkey design-and-build contractor for  mycrosmelt steel plant in Almaty. The proposed investment in the plant is  estimated at RM178m via a JV by MIE and Kazmy. Of the RM178m, 30% will  come directly from shareholders and 70% via bank borrowings from Kazakh  financial institutions. (Financial Daily)

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