Wednesday, January 4, 2012

20120104 1029 Malaysia Corporate Related News.

Bonia buys into Braun Buffel
Just over a year after expanding its brand portfolio to include rights for Braun Buffel in the Asia-Pacific, homegrown fashion label Bonia Corp is taking a bigger step abroad by taking a 49% stake in the Germany-based leather goods maker in a deal worth EUR3.2m (RM13.1m). Bonia said its 70%-owned subsidiary Jeco has signed a sales and purchase agreement with Christiane Brunk for the purchase of 49% equity stake in Braun Verwaltungs-GmbH and Braun GmbH & Co KG for EUR980k cash. (Financial Daily) Please see accompanying report

Tan Chong gets exclusive SYM distributorship in Laos
Tan Chong Motor Holdings (TCMH) has won a three-year exclusive distributorship for SYM motorcycles in Laos where it expects to sell 12,200 units in the first three years of operations. TCMH said its wholly-owned subsidiaries Tan Chong Motorcycles (Laos) Co had been appointed by Vietnam Manufacturing and Export Processing Co to be the exclusive distributor, importer and after-sales service provider for all SYM motorcycles in Laos. (Financial Daily)

Maxbiz jumps on RM510m job
Maxbiz Corp was yesterday’s third most active stock as investors chased the stock higher after it bagged infrastructure work contracts worth over RM510m. Maxbiz rose 12.9% or RM0.02 to close at RM0.175 yesterday, the highest since January last year, with over 52.7m shares traded. The stock rose to as high as RM0.19 intra-day after the company said it received a letter of intent from Fibre-N SB for a fibre-to-the-home and fibre-to-the-office contract for 100k high-rise buildings in Klang Valley, Penang and JB worth RM510m. (Financial Daily)

Seacera to kick-start 500-acre project this year
Seacera Group Bhd will this year kick-start a 500-acre mixed development project in Ulu Langat, Selangor with a gross development value of at least RM2b that will span over 10 to 15 years. (The Star)

REDtone sells controlling stake in MVNO arm
REDtone International has disposed of a 65% stake in REDtone Mobile SB to two individuals for a token RM1 as part of a rationalization exercise to improve the performance of its loss-making unit and free it to focus resources on ther businesses. REDtone International CEO Lau Bik Soon said Teh Beng Hock and Tee Yew Yaw will each hold 32.5% in REDtone Mobile, its Mobile Virtual Network Operator (MVNO) arm. REDtone Mobile would benefit from the entry of Teh and Tee who also own Elepoint SB, the largest reseller for mobile operator Celcom Axiata within the corporate segment in Malaysia. (Financial Daily)

AirAsia, MAS: Airlines deal under probe
The Malaysian Competition Commission (MYCC) has asked AirAsia and MAS to provide more  information and documents regarding their share swap arrangement to find out if the deal  could potentially put air travellers at a disadvantage.  The commission would continue the  probe if there was a breach of anti-competitive behavior and abuse of dominant position in  the deal which was signed in Aug. The MYCC’s CEO also said the commission has only  received verbal complaints but no one has lodged a complaint with the commission despite  the many quarters criticizing the share swap. (Starbiz)

Maybank: Given until June to sell down stake in BII
Maybank has been given a further extension until June 1, 2012 to sell down its stake in PT  Bank Internasional Indonesia Tbk (BII). According to Maybank, it had received a letter, dated  Dec 27, from Indonesia’s Badan Pengawas Pasar Modal dan Lembaga Keuangan (Bapepam)  where the latter had given it more time to undertake the corporate exercise. The corporate  exercise is to fulfill the mandatory sell-down requirement for BII, after several extensions.  (Financial Daily)

Sime Darby: Expands into China
Sime Darby is expanding into China’s vehicle market with the setting up of Chongqing Bow  Chuang Motor Sales & Services Co., Ltd (CQBC). The conglomerate said it received the  business licence approval on Dec 30. CQBC's  registered capital would be 35m renminbi  (RM17.6m) and held by Sime Darby’s unit B.M.W. Concessionaires (H.K.) Ltd. It added CQBC  would be involved in the display of vehicles, provision of technical consultancy and  marketing consultancy services for motor vehicles, sales of parts of vehicles and motorcycles.  (Financial Daily)

AMMB: Friends Life-AMMB in family takaful venture
FRIENDS Life PPL Ltd, a UK-based pension, life and investment firm will roll out a  family takaful business in Malaysia with its local partner AMMB this year. It is understood that the  JV, AmFamily Takaful, will offer three major products lines, namely protection, investmentlinked savings and pensions. According to a spokesperson, AmFamily Takaful, which is 30%  owned by Friends Life, plans to launch the products in the 1Q 2012. (Business Times)

LBS Bina: Eyes RM1bn sales in 2 years
LBS Bina’s MD said the company aims to achieve sales of RM1bn in 2 years in view of the  strong demand despite cautious market sentiment. He said the  company aimed to achieve  RM800m in sales this year backed by 16 new launches and 21 ongoing projects and RM950m in 2013. He added that the company currently has some 920-hectare land bank with an  estimated gross development value (GDV) of RM9.1bn to keep us busy for the next few  years. (Business Times)

Proton: News of deal to sell Tanjung Malim plant stake
Proton is in talks to sell up to a 50% stake in its Tanjung Malim plant to US-based General  Motors Corp (GM) for as much as RM800m. Citing sources, a local business daily reported  last week that GM, if it were to acquire a stake in the national car company's plant, could  invest RM300m worth of equipment in the factory. (StarBiz)


QSR: Tabung Haji asked to join bid
The Malay Chamber of Commerce Malaysia (MCCM) is asking Lembaga Tabung Haji and  other so-called “Bumiputera” funds to be its partners in bidding for a controlling stake in  fast-food restaurants operator QSR Brands. The chamber is also offering to buy Tabung Haji’s  23% stake in QSR subsidiary KFC Holdings Malaysia at RM4.10 per share if it doesn’t want to  be one of its partners. This is 10 sen per share more than CVC Capital Partners Ltd and Johor  Corp offered in a proposed buyout on Dec. 14. (Business Times)

CI Holdings: Said to be eyeing new asset
According to a source, CI Holdings which had already sold its prime asset and returned most  of the proceeds to shareholders, could now be eyeing an acquisition which would give the  company a new direction. However, the source explained that this deal had only come about  now and involved the possibility of CI Holdings taking a lead role in a consortium that would  put in a bid for the said asset. CI Holdings might fund the deal via borrowings or a rights  issue. However, CI Holdings group MD Datuk Johari Abdul Ghani said that there are a few  deals he is looking at, but there is nothing exciting. (Starbiz)

Esthetics: Rights issue undersubscribed by 28%
Esthetics’ rights issue of 52.80m new shares and 52.80m free detachable warrants were  undersubscribed by 28%. The rights issue was on the basis of 2 rights shares and 2 warrants  for every 5 shares held as at Dec 6, 2011 at an issue price of 50 sen per share. Esthetics said  at the close of acceptance and payment of the rights issue at 5pm on Dec 28, the total valid  acceptances and total valid excess applications for the rights issue were 38.016m rights  shares, which was a subscription rate of 72%. Hence, 14.78m rights shares of 28% were  undersubscribed. In view that the rights shares with warrants have not been fully subscribed  for, the board has resolved to allot the rights shares with warrants to all applicants who have  applied for the excess rights shares with warrants. The undersubscribed rights shares with  warrants will be subscribed by Esthetics’ major shareholders namely, Providence Capital Sdn  Bhd and Gambir Capital Sdn Bhd pursuant to their undertakings as stated in the abridged  prospectus dated Dec 6, 2011. (Financial Daily)

Century Logistics: Expects repairs to Thai centre ready by 1Q
Century Logistics expects the complete repairs to its distribution centre in Rojana Industrial  Park, Ayutthaya, Thailand to be completed by the 1Q 2012. It said that the flood waters  surrounding the distribution centre receded on Nov 28. Based on the preliminary assessment  conducted by the loss adjustors of the insurers, there was clear  indication that the 2.5  metres of floods since Oct 7, 2011 had caused some rust, corrosion and general  contamination to the distribution centre. Century Logistics added the removal of non  structural debris and decontamination started on Dec 7. It added the final cleaning for the  three-storey office complex and perimeter open space was underway and was expected to  be completed in one week. (Financial Times)

Naim: Launches first phase of Riveria Bay apartments
Naim through  its  wholly-owned subsidiary Khimat Mantap Sdn Bhd has launched the first  phase of its Riveria Bay project. Located near a river confluence at the boundary of Kuching  City and Kota Samarahan, it features three-storey walk-up apartments priced between  RM262,888 and RM379,888. Each of the 66  units of  2-bedroom and three-bedroom  apartments measures between 86sqm and 119sqm. Naim’s Senior General Manager (Public  Relations, Sales and Marketing, and Product Development), Alaric Soh said the apartments  would be ready by mid-2013 and become part of an exclusive residential area equipped with  24-hour security service and ample recreational facilities. (Starbiz)

VS Industry: New factory in Indonesia
VS Industry is allocating RM47.6m in capex over the next 2 years to strengthen its operation  in Indonesia. Its MD said that Indonesia offered a good long term prospect for the company.  He added that the capex will be used to set up a second factory for plastic injection  moulding-related activities. (Starbiz)

Nilai Resources: Gets RM27m price reduction from major shareholder
Nilai Resources’ subsidiary has received a RM27.36m discount on the purchase price of LK  Prisma Sdn Bhd by Lapangan Kota Sdn Bhd. Nilai Resources said its subsidiary BBN  Development Sdn Bhd had on Dec 31, 2011 received a revised letter of offer from Lapangan  Kota to sell the company for RM91.08m. Lapangan Kota is majority owned and controlled by  Nilai Resources shareholder Datuk Dr Gan Kong. Lapangan Kota owns 418.20 acres of land,  which is part of the Seremban Utara township development. The land was approved for  either residential, commercial, institution or industry use.(Financial Daily)

Vastalux Energy: Gets new substantial shareholder
Vastalux Energy which managed to avert the delisting of its securities, has seen the  emergence of a substantial shareholder, Tengku Uzir Tengku Ubaidillah. Tengku Uzir, who is  a director of Gas Altimate Services Sdn Bhd, acquired the 16.25m shares or a 7.89% stake from the open market on Dec 28. His entry could be part of the corporate exercise to rescue  Vasatlux, whose shares has been suspended from trading since Dec 29. The company is in  the midst of drawing up a regularisation plan. Vastalux, which faced suspension and delisting  on Jan 3, 2012, had managed to submit its appeal to Bursa Malaysia Securities on Dec 23 last  year. As it had submitted the appeal within the timeframe, the regulator had deferred the  decision to remove the company’s securities pending its Appeal Committee’s decision. (Financial Daily)

Tricubes: 70% subsidiary gets RM6m police contract
Tricubes’ subsidiary has secured a RM6m contract from the Home Ministry to provide  maintenance services for 2 mobile management systems used by the police. Its 70% owned  Tricubes NCR JV Sdn Bhd had accepted the letter of award for the maintenance of the  hardware and software and server enhanced mobile management system and mobile card  acceptance device. The award is valued at RM6m for a period of 2 years commencing from  Jan 1, 2012 to Dec 31, 2013. (Financial Daily)

Construction: Gemas-JB rail job winner to emerge in Mac
Government sources said the winner for the contract to build the Gemas-Johor Baru electrified double-track railway line will only be known in Mac. 3 Chinese companies were  earlier shortlisted for the RM8bn project known as the Gemas-Johor Baru Electrified Double  Tracking Project (EDTP).  They are China Railway Engineering Co (CREC), China Railway  Construction Co (CRCC) and China Communication Construction Co (CCCC).  All three are  subsidiaries of China’s Ministry of Railway. (Business Times)

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