Thursday, January 5, 2012

20120105 1213 Malaysia Corporate Related News.

Perisai Petroleum announced that it had completed the US$70m Garuda  acquisition on 27 Dec 11. (BMSB)

New York Governor Andrew Cuomo called for replacing the Jacob Javits  Convention Center in Manhattan with a 3.8m sft complex in Queens to be built  by Genting Bhd. Cuomo said the center at the Aqueduct Racetrack would be  the largest in the U.S., eclipsing Chicago’s McCormick Place. The $4bn “private  investment” would include as many as 3,000 hotel rooms. (Bloomberg)

Malaysia Airports (MAHB) failed to inform government officials that the cost  of KLIA2 would almost double to RM3.9bn as a result of shifting the new  terminal from its original site to the current location, Tony Pua said. The DAP  publicity chief pointed out that MAHB withheld this  crucial information at a  meeting on April 15, 2008, when the airport operator first mooted the current  KLIA West site.  This was despite the original KLIA Master Plan 1992 stating that soil  conditions to the west had “poor bearing qualities and is not suitable for  airport construction without undertaking significant engineering  measures”. Pua estimated that earthworks undertaken to mitigate poor soil  conditions at the new site accounted for about RM1.2bn of the RM1.9bn  in additional cost so far incurred by KLIA2. He had also pointed out the move to KLIA West meant a third runway  had to be built for RM270m, as well as a second control tower for  RM500m.  Pua urged Transport Minister  Datuk Seri Kong Cho Ha to take  action against the ministry officials involved in discussions on KLIA2.  He added that action must also be taken against the top management of  MAHB for being “economical with the truth”. (Malaysian Insider)

The government is prepared to listen to any proposal from any Felda interest  group to enhance the listing process of Felda Global Ventures Holdings  (FGVH) on Bursa Malaysia, Deputy Minister in the Prime Minister's  Department Datuk Ahmad Maslan said. He said that interest groups like  Gabungan Peneroka Generasi Wawasan Felda Kebangsaan (Gempak) will be  invited for discussions in the next few weeks. "Groups with an interest in Felda  can submit their proposals as soon as possible and I will forward them officially  in one or two weeks.  "Official discussions with these interest groups are held so that a proposal paper can be submitted to the team preparing the listing  document for approval by the Securities Commission," he said. Ahmad  said the consultations should be completed by the end of Jan and the  listing document is expected to be ready in a month or two.  FGVH is expected to be listed on the main board of Bursa Malaysia in  April this year. (Bernama)

The High Court here granted an injunction sought by four members of  Koperasi Permodalan Felda Malaysia (KPF) to stop its extraordinary  general meeting tomorrow that will decide the public listing of Felda Global  Ventures Holding (FGVH) on the Bursa Malaysia.  The injunction was filed in Temerloh on Dece 23 by Rosdi Ismail, Alias  Ibrahim, Abdullah Mohamad and Rakiah Sulong, seeking to block  KPF’s meeting as well as its decision to dispose of its assets in Felda  Holdings. The applicants were represented by counsel Mohamad Harris  Abdullah, reported Harakahdaily. (Malaysian Insider)

DRB-Hicom Bhd unit HICOM Holdings Bhd has completed its acquisition of  the entire issued and paid-up share capital of HICOM Automotive  Manufacturers (M) Sdn Bhd (HAMM), comprising 71m ordinary shares of RM1  each from Automotive Corporation (M) Sdn Bhd (ACM) for RM1. The internal  reorganisation was part of the group's intention to streamline and realign the  businesses to achieve greater operational efficiency, DRB-HICOM said.  (Starbiz)

The year 2012 would be a year when revenues will be harder to earn, and one  that even largest banking groups would find thoroughly challenging,  Datuk  Seri Nazir Razak of CIMB Group said. Even with its envied deal pipeline,  dominance and reach, Nazir told employees that CIMB performed below par in  2011. While CIMB beat rivals on several fronts and would probably meet or  perhaps exceed latest analysts’ earnings projections, Nazir said year  2011 will still be one of CIMB’s worst years in terms of total shareholder  returns. (Financial Daily)

The Securities Commission has approved the proposed warrants exchange  exercise between  Malaysia Airlines (MAS) and  AirAsia. The approval is  subject to the company complying with the relevant requirements pertaining to  the implementation of the proposal as stipulated under the SC’s equity  guidelines. (Bernama) Malaysia Airlines (MAS) must pay a customary penalty to Sabah following  the carrier's recent abrupt move to suspend flights from the state capital to  various international destinations, says Sabah Bumiputera Chamber of  Commerce. Its treasurer, Roselan Johar Mohamed, described the recent  decision by the national carrier as "very sad and a complete departure from the  role model they were suppose to assume".  "If it is deemed necessary to reduce unprofitable routes within East  Malaysia, then MAS must pay customary penalty or "sogit to Sabah and  Sarawak...after all we are the affected ones," he said. (Bernama)

Malaysia Airlines’ (MAS) short-haul premium airline is set to be launched by  the first half of this year. The six B737-800 planes (which were previously used  by Firefly) will be used by the new airline. The new airline will likely tap into  the pool of crew at MAS and Firefly, while some recruitment may be done from  the open market. The six jets which no longer sport Firefly's livery, but that of  Malaysia Airlines' are likely to be painted and give a fresh look, in line with the  new airline's branding and logo. (BT)

The  Securities Commission  has reprimanded Mulpha International's board of directors for failure to ensure that information in a 2010 prospectus  was disclosed in a "full and true manner". This administrative action was taken  on Jan 3 and the details posted on the SC website yesterday. (Starbiz)

Volkswagen Group Malaysia (VGM) has officially opened its one-stop  centre, which is expected to sell about 75 vehicles monthly and help serves more  than 300 existing owners in the east coast. The 3S centre in Jalan Beserahwhich offers sales, service and spare parts under one roof  - is owned and  operated by VGM's authorised dealer Okuan Otomobil Sdn Bhd. Okuan  Otomobil executive director Peter Yap said the company was confident to  achieve the monthly sales target after it had successfully sold more than 160  Volkswagen vehicles since July last year.  VGM is the subsidiary of Volkswagen AG of Germany and has in 2009  appointed DRB-Hicom Auto Solutions Sdn Bhd as its Malaysian  importer.  The company has also signed an agreement with  DRB-Hicom Berhad for the local assembly of Volkswagen vehicles at the  latter's facility in Pekan, with the first batch of vehicles are expected to  reach the showrooms nationwide this year. (BT)

Integrated poultry producer  DBE Gurney Resources is looking to turn  around convincingly in its FY12, through the sale and leaseback of its factories  and by increasing its plant utilitisation from a single shift to three shifts by the  start of 2Q12. DBE, which was back in the black as of 3Q11, is currently running  at a single shift of 20 hours, where it produces 3,000 birds per hour. A 3-shift  utilisation would mean production of 180,000 birds.“We are in a position where  demand exceeds supply. We have a ready market for our chickens. One of our  offtakers, KFC Holdings (M) Bhd has been asking for more chickens, but we  don't have the working capital to increase our production. “We are also getting many enquiries from the Middle Eastern countries,  like Saudi Arabia and Turkey.“We recently sent five containers of  chickens to Oman. These countries like Malaysia as we have a niche in  halal status,” says DBE Gurney group MD Alex Ding Seng Huat. Apart  from KFC, DBE supplies to Tesco and some 30 hotels in Malaysia.  (Starbiz)

Xidelang Holdings Ltd’s controlling stakeholder and MD Mark Ding Peng  Peng is a disappointed man. His company’s profit has been soaring over the past  three financial years only for the shares to keep heading south. “It is a bit  frustrating ... the investment community tells me that this has a lot to do with  perception of being a mainland China company,” Ding told BT in an interview.  he also said that 2012 will be a critical year for Xidelang in Malaysia. “We will try to increase investor relation activities here in Malaysia, and  make a decision on what we want to do with the company, going  forward,” said Ding. He admits that awareness on Xidelang has been  poor with most investors still identifying the company as a shoemaker,  when its apparels are the company’s mainstay.(BT)

Malaysia’s largest container terminal  Port of Tanjung Pelepas (PTP)  recorded a 15% rise in container volume to 7.5m TEUs of container in 2011.  PTP’s growth in 2011 had outperformed global volume growth of 7%. (Financial  Daily)

AmFirst REIT is looking to grow its asset base by 20% over the next 15  months and may do this by acquiring Malaysian shopping malls assets managed  by its Singapore-listed parent, ARA Asset. ARA Asset’s portfolio includes the 1  Mont’ Kiara Mall, AEON Bandaraya Melaka, Klang Parade, Seremban Parade  and Ipoh Parade malls. Already, AmFirst REIT is eyeing commercial properties  such as Grade A office buildings in Penang and Malacca. (Financial Daily)

Mamee-Double Decker will be delisted from Bursa Malaysia on Monday, 9  Jan 2012. (BMSB)

JCorp chairman/Johor MB clarifies KFC-QSR privatization issues
Johor Corp (JCorp) chairman Datuk Abdul Ghani has quashed allegations that the move to privatize KFC Holdings and QSR Brands was an act of selling out to foreigners or harming Bumiputera interests. In an interview, Abdul Ghani said JCorp was privatizing QSR and KFC as part of an internal reshuffle to make the corporate structure of the JCorp Group more efficient. The privatization will keep the companies within JCorp directly, while at the same time increasing its holdings in QSR and KFC from 33% and 17% respectively, to a majority of 51%. “The JCorp group has always maintained that it intends to keep the two businesses within the group, believing in their long-term value,” he said. (Malaysian Reserve)

BHIC attracts interest on privatization talk
Market talk concerning the possible privatization of Boustead Heavy Industries Corp (BHIC) has resulted in an increase in the stock’s price over the past couple of weeks. According to reports, while BHIC’s parent Boustead Holdings denied talk that it was planning to privatize the former, it then emerged that Lembaga Tabung Angkatan Tentera (LTAT) could be the vehicle to be used. LATA’s chief executive Tan Sri Lodin Wok Kamaruddin did not dismiss the possibility of the Armed Forces pension fund taking BHIC private. However, he added that the matter would have to be collectively deliberated by LTAT’s board of directors. (Financial Daily)

JCY sees surge in earnings, approves RM300m CAPEX
Hard-disk drive (HDD) component maker JCY International Bhd is likely to record a 19-fold increase in net profit y-o-y for the financial quarter 31 Dec 2011, due to an increase in average selling prices caused by component shortages arising from the flood in Thailand. To cater to the increase in the component demands from its major customers, the board of directors has approved a capital expenditure budget of about RM300m over the next 24 months, for expansion of its facilities in Malaysia, Thailand and China. Barring any unforeseen factors, JCY also expects to increase its global market share of the HDD mechanical component industry over the next two years. (BT)

Nadzmi bids for Proton
Proton Holdings chairman Datuk Mohd Nadzmi Mohd Salleh has confirmed that he has put in a bid for state fund Khazanah Nasional's 42.7% stake in the national carmaker, making him the only person to publicly indicate his interest in taking over Proton. Speaking to the media for the first time after rumours started to spread that Proton is up for sale, Nadzmi told StarBiz that privatisation was the way to go for Proton, which would enable him to restructure the whole group to turn it around. “I know the business well, and Proton is close to my heart. There is a potential in Proton and that is why I dare to make a bid, and the offer runs into billions,” he said. However, he declined to reveal the offer that he had put in for Proton due to the sensitivity of the deal, but he deemed an offer for the net tangible asset price of Proton to be too high as Proton is not an easy project, adding that some foreign banks were already in talks for the financing part if the stake were to be sold to him. (StarBiz)

Bumi Armada acquires 50% stake
Bumi Armada Bhd had acquired a 49.998% or 24,999 shares stake in India firm SP Armada Oil Exploration Pte Ltd. SP Armada, anoil & gas company will now become a “jointly-controlled” entity of Bumi Armada. The remaining 50.002% stake of SP Armada is held by India based Shapoorji Pallonji & Co Ltd. “The acquisition is to facilitate the future expansion plan and operations of Bumi Armada,” it said in an announcement to Bursa Malaysia. (StarBiz)

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