AK’s power assets draw 12 bidders
The power assets that billionaire Tan Sri Ananda Krishnan plans to sell have attracted 12 preliminary international and local bidders, with the final round of bidding expected by end of next month, sources said. The local bidders included IMalaysia Development Bhd (IMDB), and CIMB/EPF had submitted a joint bid, but the highest was from Saudi Water & Electricity Co at RM10.85bbn, sources told StarBizWeek. A total 18 parties had a look at the assets and the final round, where bidders would be shortlisted to three, will determine which party can fork out between USD3.2bn (RM9.92bn) to USD3.6bn (RM11.16bn), the price that Ananda is looking at. The USD3.2bn- USD3.6bn figure is based on recent asset sales where the purchase price of each megawatt was tagged at around USD800-USD900. “After the second round of bidding, about three parties will be shortlisted. They will then have to make a binding offer and show proof of funding,” a source said. (StarBiz Week)
Oriental privatization target?
Oriental Holdings Bhd, which had seen its share price jump by as much as 16.5% in the past week, could be the next privatization target. Sources said this followed several announcements of corporate moves which would probably be a prelude for greater things to come. “This will always catch the market by surprise. The buying of the Kingsley Hotel for about RM202m is definitely a pointer to bigger things to come for Oriental,” a source said. It is learnt that Oriental's single majority shareholder, Boon Siew SB, may decide to privatize the company to strengthen its position as part of efforts to regionalize the company. Boon Siew SB, founded by the late Tan Sri Loh Boon Siew, has a 43% stake in the company. Today, it is controlled by Loh's family, which is said to be also undergoing a leadership transition very soon. (StarBiz Week)
Vincent Tan to relist 7-Eleven, MOL to raise RM600m
Berjaya Group founder Tan Sri Vincent Tan will relist 7-Eleven Malaysia Bhd and its MOL Internet business next year to raise more than RM600m combined. Tan said he may relist MOL Global Bhd in Malaysia or Singapore, or go for a dual listing as its business is internationally focused. MOL, which is said to have about 1% stake in Facebook Inc, the world’s largest social networking service company, operates in Malaysia, Singapore, Indonesia, the Philippines, Thailand, India. It is also making inroads into Turkey, Brazil and Vietnam. “MOL is fairly profitable and has good growth currently. As for 7-Eleven, the company will be listed on its own, unlike previously,” Tan said at an event on Saturday. (BT)
MBM seeks assembly partner
Automotive group MBM Resources is shoring up cash to expand into the auto assembly business, for which it already has a licence. Looi Kok Loon, MBM Group MD, told The Edge Financial Daily, “We have already acquired a license and are in negotiations with several brands which are interested in partnering with us to assemble cars in Malaysia,” The license to assemble automobiles was picked up by the group when it acquired Kinabalu Motor Assembly SB from an Sri William Cheng’s Lion Group in 2010. It bought a 70.1% stake in the company from Lion Corp and Lion Forest Industries Bhd. (Financial Daily)
Silverbird to face Bursa, SC
It is a glaring anomaly when a listed company is late in producing its audited accounts. Therefore, it will be no surprise to see senior executives of Silver Bird Group Bhd and representatives of its external auditors at the Bursa Malaysia and Securities Commission (SC) buildings this week following the company's announcement on Friday that it could not meet the 29 Feb deadline for the issuance of its audited financial statements for the year ended 31 Oct 2011. “It's a given that we (the Silver Bird management and auditors Crowe Horwath) will have to engage with the authorities over the next few days to explain the circumstances behind the delay,” says a source close to the matter. “The reason for failing to issue the outstanding financial statements within the relevant timeframe is due to the company needing more time to resolve audit queries raised by the auditors on 22 Feb.” (StarBiz)
Massive Equity Sdn Bhd’s proposal to takeover QSR Brands Bhd and KFC Holdings Bhd may have hit some obstacles, according to sources. It is understood that US-based Yum! Brands Inc, which owns the Kentucky Fried Chicken and Pizza Hut franchises, is concerned about the large amount of debt that Massive Equity will need to raise for the takeover exercise. Also, Yum! Brands is concerned that Massive Equity may not have the financial resources to grow the business. According to sources, negotiations for the takeover, as a result of the high debt levels are still ongoing albeit at a slower price. “There is some level of concern as Yum! Brands is worried about future expansions. How Massive Equity plans to fund an expansion while taking on such a high debt level is its main concern,” says a source. According to insiders, however, Massive Equity’s business plan could see it setting up 30% more outlets than what KFC has done over the past 10 years, in a short span of time. In a possible turn of events, institutional investors might also come on board at Massive Equity, which could see CVC Capital Partners reducing its stake from the current 49%. This would also help to reduce Massive Equity’s borrowings. However, this plan to have institutional investors come in is still fluid, with many loose ends. The Edge understands that Yum! Brands is looking at the coupon repayments of a seven-year tenure of JCorp’s new RM3.2bn debt papers and are asking where the funds for the expansion of KFC and other franchises will come from. “Yum Brands gets certain payments, or makes money from each store opened, which explains its enthusiasm at the number of stores. JCorp,on the other hand, is looking at profitability, which is why the two parties are at loggerheads,” the source says. (Edge)
RHB Capital Bhd and OSK Holdings Bhd are expected to announce this week the highly anticipated merger between RHBCap's banking business and OSK Investment Bank Bhd (OSK IB), which would create the country's largest brokerage by trading value and volume, sources said. "An announcement to Bursa Malaysia will be made later this week, and subject to relevant approvals, the merger transaction would be completed in the first half of this year," a source said. (The Sun Daily)
SP Setia is making its first foray into Sabah with the RM2bil project called Aeropod. The project will be implemented over five phases in a span of about eight to 10 years. When fully completed, Aeropod being built on a 24ha site, would feature three hotels, nearly 28,000 sq m of retail space, some 5,000 residential units as well as the new Sabah Railway Department headquarters. The Aeropod would not only serve as a railway station but would also be geared for the future by being built to accommodate mass rapid transit (MRT) or monorail services. (Starbiz)
Automotive players are apparently not happy with the outcome of their dialogue with Bank Negara Malaysia last Friday to help resolve issues related to the new lending guidelines. After the nearly two-hour meeting, Bank Negara appeared to focus more on the implementation of the new ruling, and less on the ruling itself, Proton Edar Dealers' Association (Peda) said. The Malaysian Automotive Association (MAA) last week said new vehicle sales in January had dropped 25 per cent or a whopping 13,833 units to 40,948 units, from 54,781 units in the same month in 2011. Peda's president, Armin Baniaz Pahamin said the approval rate for vehicle financing in January was only 30 per cent although Bank Negara's official records show a 54 per cent approval. (BT)
Akashi-Kikai Malaysia, a joint-venture firm set up by Daihatsu Motor Co Ltd with its subsidiaries Akashi-Kikai Industry Co Ltd of Japan and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) will build an electronic automatic transmission (E-AT) manufacturing plant in Seremban, Negeri Sembilan. Akashi-Kikai Malaysia will put in RM100m capital for the project. The JV company will have a production capacity of 150,000 units a year. (BT)
China Stationery Ltd (CSL) plants to invest RM10.78m to strengthen its brands by increasing advertising and promotional activities to create further awareness. Its executive chairman Chan Fung @ Kwan Wing Yin said the company would launch two new patented products this year. The company made its debut on the Main Market of Bursa Malaysia last Friday at 98 sen. (Malaysian Reserve)
KPJ Healthcare Bhd is preparing to attract more foreign patients to grow its medical tourism business. The company is the country's largest private medical entity with a network of 20 hospitals nationwide. (Financial Daily)
Selia Pantai Sdn Bhd is exploring strategic partnerships with domestic and foreign investors to fast track the development of its on-going SouthKey project. Managing director Datuk Mohamed Zaini Amran said the company was currently negotiating with several reputable developers from Malaysia and Singapore for partnerships. (Starbiz)
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