Tuesday, March 20, 2012

20120320 0959 Malaysia Corporate Related News.

Felda Global set for aggressive expansion
Felda Global Ventures Holdings Bhd will aggressively expand its business to become a fully integrated oils and  fats player from upstream to downstream. Senior vice-president (oils and fats) Martin Rushworth, said one of  the ways is to find a strategic global partner to help Felda’s business move across the entire supply chain. The  spectrum starts from planting oil palm, selling crude palm oil, refining, refraction as well as selling value-added products such as palm stearin, cooking oil, margarine, bakery fats and industrial fats. (Source: Business Times)

Indonesian tycoon plans reverse takeover of KeyWest
Yanki Regan, Indonesia’s multi-level marketing (MLM) magnate, plans to take control of Key West Global Telecommunications Bhd (KeyWest), bankers helping broker the deal said yesterday. Business Times understands that KN Kenanga Bhd is helping to structure the deal in which Yanki and people aligned to him will initiate a reverse takeover of KeyWest. Malaysia-born Yanki helped build PT Citra Nusa Insan Cemerlang (CNI) some 27 years ago to become the second largest MLM company in Indonesia. (Source: Business Times)

RCI receives conditional takeover offer
Rock Chemical Industries (Malaysia) Bhd (RCI) received a conditional takeover offer from Mega First Corp Bhd, Authentic Excellence Sdn Bhd and Geo-Mobile Asia Sdn Bhd to acquire all the remaining shares in RCI that they do not already own for RM2.10 apiece. The offer is a 20 per cent premium over RCI’s last traded price of RM1.75 on March 16. (Source: Business Times)

Hap Seng to sell Sepang plantation land
Hap Seng Consolidated Bhd (HSCB) has announced that its wholly-owned subsidiary, Hap Seng Land Sdn Bhd, intends to dispose of two pieces of freehold plantation land in Sepang to Eighty Illusions Sdn Bhd for RM 46.065 million. The proposed disposal is expected to provide a net gain of about RM38.4 million to the HSCB Group. The proposed disposal is expected to be completed in the first quarter of 2012.  (Source: Business Times)

KrisAssets’s malls worth RM4.6b
The keen anticipated real estate investment trust (REIT) offering by IGB Corp Bhd could fetch valuations of between RM4.3 billion and RM4.6 billion for two prime retail malls currently held under IGB’s subsidiary KrisAssets Holdings Bhd, sources said. Sources said the deal is structured on a capitalization rate of 5.3%. (Source: The Edge)

NY casino licence race hots up for Genting
The race for a casino licence in New York is heating up for Genting group after lawmakers last week agreed to amend the state constitution to allow up to seven casino operators in the US state. Genting aside, other wellfinanced groups vying for a licence include the big boy Las Vegas operators and Indian tribal groups, all of whom have hired their own army of lobbyists and consultants to boost their chances. (Source: The Edge)

Silver Bird sees no impact
The termination of distributorship for Maxis's prepaid cards would not have any material financial impact on Silver Bird Group, the company said. "Subject to the outcome of the forensic accountants, to the best of knowledge of the special committee, the termination of the distribution agreement is not expected to have any material impact on the group in terms of earnings per share," the breadmaker said in a Bursa Malaysia filing yesterday. The termination was effective 15 March. (StarBiz)

Telekom plans 'to go back to basics'
Telekom Malaysia (TM) will go back to basics when it comes to competing against rivals and maintaining its lead in the broadband market. TM, one of the first companies to offer high-speed broadband in a big way, currently faces direct competition from several players, including Maxis, the country's largest mobile operator, and Time Dotcom. Players like REDtone and P1 will be offering fibre broadband services to customers - via TM's own network. The company plans to aggressively pursue the small- and medium-sized enterprises (SMEs) market. TM currently has 300,000 Unifi customers. Of those, 10% or 30,000 customers, are SMEs. (BT)

Khamil is Proton's new executive chairman
DRB-Hicom group managing director Datuk Mohd Khamil Jamil has been appointed the new executive chairman of Proton Holding, following the resignation of Datuk Seri Mohd Nadzmi Mohd Salleh last week. In a statement to Bursa Malaysia yesterday, Proton said Khamil's appointment was made upon the completion of Proton’s takeover by DRB-Hicom on 16 March. The appointment follows a number of internal changes within DRB-Hicom, which was seen to be positioning the group for its "integration" with Proton. (Financial Daily)

IRDA eyes at least RM20bn in annual investment
The Iskandar Regional Development Authority (IRDA) has targeted to achieve at least RM20bn in committed investment annually until 2018, and at least RM25bn a year from 2019 to 2025, in order for it to achieve a cumulative RM383bn in committed investments in Iskandar Malaysia by 2025. Since inception, the region has received a total of RM84.9bn worth of committed investments, mainly from tourism, education and healthcare services sectors. Chief executive Ismail Ibrahim said IRDA will focus on three more sectors in the manufacturing sector - agro and food processing, oil and gas and electrical and electronics sector - in addition to the financial services sector. (Financial Daily)

KrisAssets’ malls worth RM4.6bn
The keenly anticipated real estate investment trust (REIT) offering by IGB Corp could fetch valuations of between RM4.3bn and RM4.6bn for the two prime retail malls currently being held under IGB’s subsidiary KrissAssets Holdings, sources said. Sources said the deal is structured on a capitalisation rate of 5.3%. The valuation is said to have exceeded the management’s earlier expectations of around RM4bn and a capitalisation rate of 5.5%, a source said. The retail REIT is expected to start with two key assets, Mid Valley Megamall and The Gardens Mall, both in the Mid Valley City area developed by IGB. (Financial Daily)

Tasco leases land at PTP
Freight company Tasco has entered into a RM5.4m sub-letting agreement with Pelabuhan Tanjung Pelepas SB (PTP) to sub-lease 217,800 sq ft of land in the Pelepas Free Zone, for a whole sub-lease period of 43 years until 23 March 2055. The land is part of a master leasehold land held by the Johor Port Authority. (Malaysian Reserve)

Malayan Flour sets rights issue at RM0.93
Malayan Flour Mills has fixed the price of its rights share issue at RM0.93 and the exercise price of warrants at RM2.06, according to a filing with Bursa Malaysia yesterday. The wheat miller with operations in Malaysia and Vietnam said the rights issue price was at a 50.3% discount to current average


Boustead Naval Shipyard gets RM2.06b financing facilities
Boustead Naval Shipyard Sdn Bhd (BNS) has obtained facilities of up to RM2.06b, which is part of the overall syndicated facilities of up to RM5.56m. The facilities will be used for by BNS, a subsidiary of Boustead Holdings Bhd, which was awarded a contract by the Malaysian navy for the construction of six second-generation patrol vehicles with combatant capabilities. (The Edge)

Bumi Armada JV in USD100m loan deal
Armada D1 Pte, a venture between Forbes & Co, controlled by billionaire Pallonji Shapoorji Mistry, and Kuala Lumpur-based Bumi Armada Bhd, signed a USD100m loan. (The Star)

Proton names Khamil as new chairman
DRB-Hicom Bhd managing director Datuk Seri Mohd Khamil Jamil will helm Proton Holdings Bhd's leadership as its executive chairman and executive director. Khamil, 56, who has been DRB Hicom managing director since 2006, would immediately replace Datuk Seri Nadzmi Mohd Salleh who had resigned on 16 Mar as part of the terms agreed upon when DRB Hicom acquired Khazanah Nasional Bhd's 42.74% stake in Proton. (The Star)

Makeover offer for Esso Malaysia
San Miguel Corp, a Petron Corp affiliate, submitted a mandatory takeover offer to acquire 35% of Esso Malaysia Bhd. The offer was required after Petron Oil and Gas International Bhd completed the purchase of 65% of Esso Malaysia. (The Star)


MAS, AirAsia: Collaboration part of solution, not problem
MAS chairman, Tan Sri Md Nor Yusof said the collaboration between MAS and AirAsia as well as the share swap between the airlines’ key shareholders, Khazanah Nasional Bhd and Tune Air Sdn Bhd are part of the solution in efforts to turn around MAS and not part of the carrier’s acute financial woes. Meanwhile, Md Noor appealed for MAS’s management team to be given sufficient time to effectively implement its business plan and for the judgement to be based on results delivered. According to him, MAS will undertake key initiatives under its business plan within the next 6 months which involves the strengthening of its revenue management, launching of the regional short-haul premium airline and introducing the new flagship Airbus A380 to its fleet. (Financial Daily)

Parkson Holdings: Subsidiary eyes 18 new stores in Malaysia by 2020
Parkson Retail Asia Ltd (PRA), which operates department stores in Malaysia, Indonesia and Vietnam, expects to open as many as 18 new Parkson stores in Malaysia by 2020, in addition to the 37 stores currently. The additional stores would provide the retailer an additional 2.16m sq ft of retail space from a total of 4.2m sq ft now. This expansion is in line with PRA's target of opening at least two stores each year as well as its parent Parkson Holdings Bhd's (PHB) plan to own and manage 10 shopping complexes by 2020. PHB recently announced a RM3bn investment to develop its shopping management business. It targets to open 10 shopping centres under the Festival City brand. PRA's executive director Toh Peng Koon said two Parkson department stores were slated to open this year - in Setia City Mall, Shah Alam, in May and in Nu Sentral, Kuala Lumpur, in the final quarter of this year. He said besides these two, PRA have 3 more confirmed sites that will open over the next two years. Those outlets will be located in Plaza Merdeka in Kuching, KK Times Square in Kota Kinabalu and B8 Mall in Skudai, Johor. On average, each store has a leasing area of between 120,000 sq ft and 150,000 sq ft. (Business Times)

SP Setia: Asks for lower public shareholding
SP Setia, which intends to maintain its listing status, will apply to Bursa Malaysia to request for an acceptance of a lower public shareholding spread given that its majority shareholder, Permodalan Nasional and Tan Sri Liew Kee Sin, now owns 78.95% of the company. According to Paragraph 8.02 of the main market listing requirements, a listed company must ensure that at least 25% of the total listed shares are in the hands of public shareholders. (StarBiz)

Eng Teknologi: Offer price revised lower
The founders and major shareholders of Eng Teknologi Holdings who are in the midst of privatising the hard disk drive component maker, said the takeover offer price has been revised downwards from RM2.50 to RM2.00. In a statement to the exchange on Monday , Eng Teknologi said its founders Datuk Teh Yong Khoon and Low Yeow Siang via private vehicle TYK Capital Sdn Bhd, has proposed to lower the offer price as their financiers were unable to justify the funding for the takeover at RM2.50. The financiers are unable to justify the funding after taking into account Eng Teknologi’s financials considering that its business was affected by the floods in Thailand, according to the company. Eng Teknologi said it will deliberate on TYK’s revised offer. (Financial Daily)

Metronic Global: Parties keen on acquiring MD’s shares
Metronic Global announced Monday that its MD and substantial shareholder, Dr. Ng Tek Che has been approached by parties interested in purchasing part of or all his interest in the company. In a filling with Bursa Malaysia, the company said Ng holds 33.19m shares in the company, representing 5.23% of the total issued and paid-up share capital. (Financial Daily)

Construction: Dana Infra to issue bonds worth RM8bn for MRT project
According to banking sources, Dana Infra Nasional would be issuing bonds worth RM8bn in 2H 2012 to finance the construction of the My Rapid Transit (MRT) project, less than the RM20bn to RM30bn initially expected. Sources added that there is also a likelihood that due to the delay in the bond issuance, the initial bridging loan of RM500m from a consortium of banks to cover early building work would be raised to a couple of billion ringgit so that the MRT project would not suffer any delay. (StarBiz)

Healthcare: At least 17 new private hospitals by 2015
Malaysia could see at least 17 new private hospitals by 2015, with licence to operate some 4,500 beds, involving investments to the tune of RM4.5bn. At least 3 other hospitals have applied to expand its facility and will add another 770 beds. Industry sources say that based on various reports, this would bring the total number of new beds close to 5,300. An industry expert contacted by Business Times, said that the average cost of new hospitals (based on number of beds) is around RM1m, while for extension it is about RM500m. Total investment in private hospitals by 2015 would translate roughly to as much as RM4.8bn, including extending the hospital facility. The Performance Management and Delivery Unit has projected that by 2020, the hospital bed requirement - between 5,000 and 6,000 beds - set to meet both domestic and overseas demand. Of this, 1,900 beds are for foreign patients. (Business Times)

Property: Iskandar Regional Development Authority targets RM20bn investments a year
The Iskandar Regional Development Authority (IRDA) has targeted to achieve at least RM20bn in committed investments annually in the Iskandar Malaysia special economic region until 2018. The annual target is part of its overall objective to achieve a cumulative RM383bn in committed investments by 2025. IRDA chief executive Ismail Ibrahim said on Monday that the IRDA would need to attract at least RM25bn of committed investments annually from 2019 until 2025 under the last stage, if it is to achieve the cumulative target of committed investments in Iskandar Malaysia. (Financial Daily)

Economy: Chinese business community less optimistic on 2012
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM) said the Chinese business community is less optimistic about the economic outlook for 2012 but remain cautiously optimistic for 2013. According to its survey on the economic situation in Malaysia for the 2H 2011, 58% of the respondents expressed confidence in the country’s economic performance and business outlook for 2012, down from 65% in 2011. On the other hand, 42% are pessimistic about economic outlook in 2012, an increase from 35% in 2011. (Financial Daily)


Hong Leong Capital: Gets nod for MIMB buy. Hong Leong Capital Bhd has received the approval from the Finance Ministry for its proposed acquisition of the entire equity interest in MIMB Investment Bank Bhd. Hong Leong Capital is buying over MIMB from Hong Leong Bank Bhd. The proposed acquisition is part of an exercise to rationalise the investment banking businesses involving MIMB and Hong Leong Investment Bank Bhd (HLIB). The exercise involved a transfer of the entire business, assets and liabilities of HLIB to MIMB. (Source: The Star)

MAS: Firefly to reintroduce fuel surcharge from March 21. In a statement today, Firefly said that a fuel surcharge of RM10 for domestic travel will be imposed for each leg and RM20 for regional routes. It also said that all flight bookings made before March 21 are unaffected. (Source: The EdgeDaily)

MAS: Carriers thrashing out ownership issues on 40 aircraft. Ownership issues on some 40 narrow-bodied aircraft used by Malaysia Airlines and its subsidiary Firefly are currently being negotiated, prior to the launch of the national carrier's new short-haul premium airline. Business Times has learnt that the two carriers are currently talking about which party or parties will take ownership of the Boeing 737-800 and ageing Boeing 737-400. There are currently some 40 narrow-bodied planes of which eight (of the Boeing 737-800) and two Boeing 737-400 belong to Firefly. The rest of these fleet belong to Khazanah Nasional Bhd's subsidiary, Penerbangan Malaysia Bhd (MAS' holding company), which in turn leases the aircraft to MAS. (Source: Business Times)

Kimlun: Wins RM152m contracts. Kimlun Corp Bhd subsidiary Kimlun Sdn Bhd has received two contracts worth a total of RM151.6m for housing projects in Johor Baru. The first contract involved the construction of serviced apartments and ancillary buildings worth RM114.7m from SP Setia Bhd subsidiary Bukit Indah (Johor) Sdn Bhd. The other project is for the construction of 244 houses worth RM36.9m from Keck Seng (M) Bhd with an estimated date of completion of September 2013. (Source: Bursa Malaysia)

REDTONE International Bhd: Eyes government projects worth RM800m. REDTONE International Bhd, a communications solutions provider, is bidding for government projects worth up to RM800m."Over the near to medium term, we see an increasing use of Internet and network by the public sector and we certainly have the solutions and capability to address their needs," said REDtone managing director Datuk Wei Chuan Beng. Wei added that he expected revenue contribution from the public sector to be more "balanced" over the next few years. Currently, contracts from the government and related agencies contribute about 30 per cent of the company's revenue. (Source: Business Times)  

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