Friday, April 13, 2012

20120413 1029 Malaysia Corporate Related News.

Maybank has hired former Citigroup executive Giles Ong to build its investment banking and advisory business. Ong was Citigroup’s head of mergers and acquisitions for South-East Asia before he left the US bank in December, and joined Maybank this week. (Bloomberg)

The final draft of the National Automotive Policy review is expected to be presented to the Cabinet soon, International Trade and Industry Minister Datuk Seri Mustapha Mohamad said Thursday. He said discussions with all stakeholders have been completed, and they were now compiling all the findings. (The Star)

Putrajaya backs JCorp debt refinancing
The Federal Government has thrown debt-laden Johor Corp (JCorp) a financial lifeline by guaranteeing a fundraising exercise that will help the state agency meet its immediate debt obligations. JCorp, the strategic investment are of Johor, announced that it planned to issue a sukuk wakalah Islamic finance instrument worth RM3bn to be directed at redeeming the state-owned corporation’s outstanding bonds worth RM3.2bn maturing at end-July. The guarantee, approved by the Cabinet, represents a major department from the Government’s treatment of loans by state agencies. (Financial Daily)

Johor's state investment arm Johor Corp (JCorp) and CVC Capital Partners Asia III are still pursuing the privatisation of QSR Brands Bhd and KFC Holdings (M) Bhd. In Dec-2011, JCorp and CVC Capital, via Massive Equity Sdn Bhd, announced their intention to buy QSR shares at RM6.80 each and RM3.79 per warrant. They also offered RM4 per KFC share and RM1 per warrant. "This is a complex buyout. It has taken longer than we anticipated as there are many parties involved. We need to abide by listing rules as it involves three listed entities; QSR Brands Bhd, KFC Holdings Bhd and Kulim (Malaysia) Bhd," said president Kamaruzzaman Abu Kassim. Asked if the United States-based Yum! Brands Inc, the licensor and owner of the KFC and Pizza Hut brandnames is happy with the privatisation plan, Kamaruzzaman replied, "They understand our proposal and are assured of further growth in the business. In fact, Yum! Brands sees this region as one of their most profitable." (BT) To another query on JCorp's financial health, Kamaruzzaman replied: "Our debt to asset ratio is 0.72x. The market no longer speculates on JCorp's solvency." He went on to say JCorp will issue a RM3bn sukuk wakallah with maturities stretching from 5-10 years to redeem existing bond obligations amounting to RM3.2bn, which will expire in end-July 2012. (BT) The federal government is guaranteeing this RM3.2bn sukuk wakallah that will help the state agency meet its immediate debt obligations. The guarantee, approved by the Cabinet, represents a major departure from government’s treatment of loans by state agencies. Typically, the federal government provides its backing for fresh loans taken by state agencies and shuns providing support for fundraising schemes directed at refinancing existing debt. Kamaruzzaman reasoned that the Cabinet’s guarantee is to ensure the state agency continues to spearhead development efforts in Johor. “JCorp has a combined role as a public enterprise, but more important is that JCorp has in the past until now played the developmental role of the Johor state. Over the years, we have gone beyond the state because of the interest of our businesses, especially the hospitals and food chains,” he said. (Financial Daily)

AmG buys Kurnia for RM1.5bn
AmG Insurance, the general insurance arm of AMMB Holdings, has wholly acquired Kurnia Insurans for RM1.5bn cash, making it the country's number one general and motor insurance firm. In a statement yesterday, AMMB directors said the purchase would elevate the company into becoming Malaysia's largest general insurer with over RM1.7bn in gross written premium. AMMB and AmG chairman Tan Sri Azman Hashim said the acquisition would enable AmG to achieve its objective of being among the top three domestic general insurers. "The combined businesses of AmG and Kurnia will see it emerge as the largest domestic general insurer and the market leader in motor insurance," said Azman. He added that this acquisition complemented AmBank Group's medium-term aspiration and strategic priorities of growing income from profitable segments. (BT)

MUI to dispose of insurance ops to Tokio Marine
Malayan United Industries (MUI) has proposed to sell the insurance assets and liabilities of MUI Continental Insurance Bhd (MCI) to Tokio Marine Insurans for a premium of RM180.23m. MUI told Bursa Malaysia that it had applied to Bank Negara for its approval of the proposed sale on 10 April. MCI is a 52.2% owned subsidiary of Novimax SB, which is a wholly-owned subsidiary of MUI. “The value of the insurance assets to be transferred to Tokio Marine shall be equal to the value of the insurance liabilities assumed by Tokio Marine as at the transfer date, to be determined,” said MUI. (StarBiz)

Axis Real Estate Investment Trust Buys industrial land, buildings for RM26.5m cash
Axis Real Estate Investment Trust (Axis-REIT) is expanding its portfolio of properties with the proposed acquisition of two parcels of indsutrial land with buildings in Labu, Negeri Sembilan, for RM26.50mil cash. Axis REIT Managers Bhd, the management company of Axis-REIT, yesterday said the 29,436 sq metres of land with tenure of 99 years expiring in September 2095, was acquired from LRS Property Sdn Bhd. The acquisition was undertaken by OSK Trustees Bhd, the trustee for Axis-REIT. Axis REIT Managers said the acquisition was to provide unitholders with stable distribution and to achieve growth in net asset value per unit of the fund. - StarBiz

Telekom Malaysia Bhd Proposes final dividend of 9.8 sen
Telekom Malaysia Bhd (TM) is proposing a final single-tier dividend of 9.8 sen per share for the financial year ended Dec 31, 2011. The company said in a filing with Bursa Malaysia that the dividend would go ex on May 22. The entitlement date would be May 24 subject to shareholders’ approval in the upcoming AGM on May 8, it added. - StarBiz

CIMB Group Bhd CIMB, RBS agree to collaborate
CIMB Group, which last week announced its acquisition of some Royal Bank of Scotland (RBS) assets in the Asia Pacific, has defined potential areas of collaboration with RBS in the region. The areas, as set out under a cooperation agreement inked by the two banking groups here yesterday, are capital market activities, mergers and acquisitions, equities, derivatives, loan markets, trade advisory and trade financing solutions, cash management services and agent/custodian bank arrangements. CIMB group chief executive Datuk Seri Nazir Razak said the agreement would allow both CIMB and RBS to leverage off each other in key Asia Pacific markets, adding that there is huge potential for cross referrals. – Business Times

Maxis Bhd Browse books via Maxis
Maxis Bhd, the country’s biggest mobile operator, launched its maiden digital books (ebooks) service to tap into the growth potential of the tablet computer industry. Sales of tablet computers like Apple iPad and Samsung Galaxy Tab grew by 500.0% in the fourth quarter of last year to 260,000 units. T. Kugan, Maxis vice-president and head of product, device, innovation and roaming said Maxis has recognised the shift towards digital content and with the launch of Maxis ebooks, they are looking at providing local readers with the hassle-free experience of browsing, purchasing and reading books on their tablets or PCs. About 31.0% of Maxis subscribers use devices like smart phones and tablet computers. The service is also expected to help the company grow its revenue, as Maxis takes a cut from the ebook purchases. While the exact amount Maxis will be getting was not revealed, it is understood that 70.0% of the sale will go to the publishers. The remaining 30.0% may be shared with its other technology partners. – Business Times

TNB back in the black
Tenaga Nasional (TNB) has posted its first quarterly profit after three consecutive quarters in the red. For its 2Q ended 29 Feb, the national utility recorded a net profit of RM2.82bn, almost 340% higher y-o-y. This was largely because of a RM2.02bn compensation paid to it by the Government and Petronas under a cost-sharing mechanism agreed to last year, following a shortfall in gas supply which crippled TNB's electricity generation and forced it to spend RM2.1bn to burn costly oil and distillates. It has also approved an interim dividend of 5.09 sen per ordinary share less income tax of 25%. (StarBiz)

MMC Corp Bhd has revised the allocation of offer shares under Gas Malaysia Bhd’s listing on Bursa Malaysia. The International Trade and Industry Ministry has informed that it has no objection for Gas Malaysia to revise the allocation of the offer shares between the institutional and selected investors and the eligible directors and employees. Under the revised offer, institutional and selected investors will receive 155.6m shares from 155.8m before while eligible directors and employees will be offered 4.8m from 4.6m before. (BT)

IOI Corp Bhd associate company Bumitama Agri Ltd closed 31.5% higher to S$0.98 on its debut on the Singapore Exchange. IOI Corp has a 30.4% stake in its Indonesian plantation associate. (StarBiz)

Tune Money expects to secure 1m customers for its AirAsia BIG Loyalty global reward programme this year. Tune Money CEO Peter Miller said the loyalty programme, which was launched last November, had 110,000 subscribers currently. “We plan to collaborate with every industry players to diversify our offerings to customers,” he said. (BT)

Kejuruteraan Samudra Timur Bhd has entered into a time charter agreement with Indonesia’s PT Duta Adhikarya to lease one set of drilling rig with accessories and parts for six consecutive months from January 2012 for a drilling project with Vico Indonesia in East Kalimantan Indonesia. Kejuruteraan Samudra directors said its wholly-owned subsidiary KST Drilling Technologies Sdn Bhd said there is no indication on the value of the contract in the award. (BT)

K-One Technology Bhd (K-One) sustained more than RM13m in damages after one of its factories in Silibin industrial estate, Ipoh, was gutted on Tuesday. The company said on Thursday the preliminary estimate of damages comprised of raw materials, work-in-progress, finished goods, own brand products, machines and building. However, the loss impact was mitigated by insurance coverage, it added. (BT)

Malayan United Industries Bhd (MUI) has proposed to sell its insurance arm MUI Continental Insurance Bhd. MUI said in an announcement to Bursa Malaysia that it is seeking Bank Negara Malaysia's permission to sell its general insurance assets and liabilities to Tokio Marine Insurans (Malaysia) Bhd for a premium of RM180.23m. However, it is unclear how the premium of RM180.23m was derived. (Financial Daily)

Golden Land Bhd plans to acquire a 95% equity stake in Indonesia's PT Tasnida Agro Lestari (TAL) for RM16.5m, which will double its oil palm plantation landbank to over 20,000 hectares from 9,683 hectares presently. The acquisition will provide the company about 10,810 hectares in south Kalimantan. About 837 hectares of this are planted areas. (Financial Daily)

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