Thursday, April 26, 2012

20120426 1053 Malaysia Corporate Related News.

Felda downsizes listing plans
The much-awaited public offering of Felda Global Ventures Holdings Berhad (FGVHB) will proceed without Koperasi Permodalan Felda (KPF), a move investment analysts said will scale down the planned IPO of the plantation grouping that produces 8% of the global palm oil output. Under the listing plan unveiled yesterday, Felda chairman Tan Sri Mohamed Isa Abdul Samad said KPF, a cooperative comprising Felda employees and settlers, will not participate directly in the listing of FGVHB, which is set for late next month or early June. (Financial Daily)

Deputy Finance Minister Datuk Dr Awang Adek Hussin has refuted allegations that the comprehensive collaboration framework (CCF) between Malaysia Airline (MAS) and AirAsia is one-sided. The CCF is part of MAS’ recovery plan to improve its operations and finances and become a premier airline. It is not a merger but a strategic collaboration to explore mutually beneficial opportunities and give a new lease of life to MAS. (Financial Daily)

Malaysia Competition Commission (MyCC) chairman Tan Sri Siti Norma Yaakob confirmed that its probe into the Malaysia Airlines-AirAsia share swap was still ongoing. “Yes, we have got some of the information, but it’s not enough. We will be the first to tell you once we’ve reached a decision, but I can’t say when that will be,” she said. Siti Norma said the air transport review, which had since been concluded, was a preliminary analysis as a reference to understand the mechanics of the industry. (Star Biz)

TH Plantations Bhd's acquisition of a total of 19,000ha in Sarawak and East Kalimantan for RM93m is expected to be completed by the third quarter this year. Its chief executive officer and executive director Datuk Zainal Azwar Zainal Aminuddin said the group's total land bank would be more than 59,000ha after the acquisition and would transform the company into a mid-size plantation company. "We are exploring to add another 20,000ha in three years. At the moment, we are scouting for land in Sarawak as well as Kalimantan," he said. (StarBiz)

New Britain Palm Oil Ltd has ceased to be a subsidiary of Kulim (M) Bhd after the former issued 33.3m shares to The Independent Public Business Corp of Papua New Guinea for the acquisition of the remaining 20% state in Kula Palm Oil Ltd. Kulim said its stake in New Britain has been reduce to 49.54% following the issuance, from 50.68% previously. (StarBiz)

Malaysia's financial system can raise the required financing to support the KVMRT, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said. Despite the “massive funds” needed for the project, she cited Projek Lebuhraya Usahasama Bhd's RM30.6bn sukuk issuance in January as proof the capital market could stomach that level of fund-raising. “We were invited to give our views and proposals on how this (KVMRT) could be financed and I believe there are innovative ways (to do it). Of course, all these projects need to be staggered and not happen at the same time,” she said. She added that if the various infrastructure projects mooted under the ETP were well-managed, there would be ample liquidity and finance to go around. Dana Infra Nasional Bhd, a special unit of the MOF would be making issuances worth RM8bn of sukuk bonds for KVMRT in 2H12. A larger tranche of bonds would be raised in 2013 bringing the total amount to between RM20-30bn. (Starbiz)

Private equity fund Navis has made an unconditional general offer for education group SEG International Bhd (SEGi), with plans to subsequently take the company private. Navis, via Pinnacle Heritage Solutions Sdn Bhd, is acting in concert with SEGi's largest shareholder, Datuk Seri Clement Hii Chii Kok@Hii Chee Kok. They are offering RM1.714 for each SEGi share and RM1.214 for each SEGi warrant. They have valued the group at RM1.19b. However, Navis' offer price per share is at a 5.5% discount to SEGi's closing price of RM1.81. The warrants were last traded at RM1.26. Asia Fund V1 GP Ltd and Navis MGO 1 GP Ltd are the ultimate shareholders of Pinnacle. Pinnacle has been steadily accumulating shares of SEGi since March 29 this year, at the same offer price it is making for the remaining shares and warrants. In a statement to Bursa Malaysia, SEGi said Pinnacle and Hii, as of yesterday, collectively owned 57.62% of of company's stake (excluding the warrants), thus triggering a mandatory general offer. (BT)

KUB Malaysia Bhd has no plans to sell off its fast-food restaurant franchise business, A&W Malaysia, an industry source said Wednesday. It was reported recently that the company would be disposing of 45% equity in the fast-food restaurant business to Ekuiti Nasional Bhd (Ekuinas). "The plan to sell A&W was made under the previous CEO. The plan is no longer valid now. It is now a matter of correcting the strategy in taking the business to new heights," the source said. According to the source, KUB in fact has plans to develop the A&W Malaysia fast-food restaurant business under its present Group Managing Director Datuk Wan Mohd Nor. He is expected to unveil his business plans soon to take the company to greater heights. KUB is the licensee of A&W in Thailand and Malaysia since 2002. Currently, it has 45 outlets in Malaysia and 43 in Thailand. (Bernama)

Sources tell that Ramunia Holdings has received a notice for a letter of intent from Shell for fabrication works worth RM170m. However, the offer could be conditional upon Ramunia possessing its own fabrication yard. Ramunia will have to expedite its acquisition of the fabrication yard in Pulau Indah from Oilfab Sdn Bhd. Thus, the proposed rights issue is essential to raise cash. (Financial Daily)

Nigeria wants national oil company Petroliam Nasional Bhd (Petronas) to resume exploring oil and gas in the country. Nigerian foreign minister Mohamed Bazoum said he will write a formal letter to Prime Minister Najib Tun Razak to urge Petronas to make a comeback to the the country after nearly an 8-year lapse. Nigeria has been known for many years to have oil reserves embedded in her soil, although the proven reserves have not been technically or fully ascertained until recently. (BT)

Privasia Technology Bhd has bagged a RM12.8m contract from the Malacca state government to install a complete fibre optic network in the state. The project, expected to be completed by September this year, is expected to contribute positively to its profitability in 2012. Privasia's projects include the installation of a high speed broadband network in Kuantan, Pahang and a WiFi rollout plan for Perak. The National Broadband Initiative, Malaysia's broadband household penetration rate as at January 2012 was at 62.3%. (BT)

After its sales in Indonesia more than tripled in 2011, Yeo Hiap Seng Bhd (YHS) expects revenue from Indonesia to surpass that of Malaysia. "The Indonesian market potential is very, very huge. We are only scratching the surface of Indonesia," chief operating officer Ong Chay Seng said. The strong growth in Indonesia came after YHS successfully re-launched its products there following the issuance of new registration numbers for the import of food. In late 2009, YHS suffered a setback when Indonesian authorities cancelled 15 registration numbers. YHS will also start investing in PET production lines for its Asian drinks soon, which would give it the option to package its Asian drinks in plastic bottles, said Ong. (Financial Daily)

Ingress Corporation Bhd’s subsidiary in Indonesia, PT Ingress Malindo Ventures, has been awarded a RM26.6m contract to supply door sash parts for a new Honda model by PT Honda Prospect Motor. The five-year project to supply the parts would start within the first quarter of financial year ending January 31 2014. “The project is forecast to generate total revenue for Ingress of approximately RM26.6m (for the five year duration of the project) whilst the total investment is expected to cost RM14mn,” it said. (BT)

Mudajaya clarifies on coal worries
Mudajaya Group has assured that it would be able to secure the coal it needs for its power plants in India, quelling concerns that its plants could be left idle. “The Indian government would ensure that the independent power producers (IPP) would get their supply of coal. Already there is a shortfall of power in India,” said Mudajaya managing director Anto Joseph in a briefing yesterday. (Financial Daily)

Iskandar Investment, MCT Group in tie-up
Iskandar Investment has entered into a collaboration agreement with MCT Group to develop properties in Medini Iskandar, Nusajaya. Medini Iskandar is a urban development project within the Nusajaya development zone. Under the agreement, MCT intends to develop buildings comprising of SoHo/studio units, a hotel and a boutique retail gallery there. Iskandar Investment president and CEO Datuk Syed Mohamed Syed Ibrahim said MCT’s presence will complement efforts in the transformation of Medini Iskandar into the central business district of Nusajaya. (Financial Daily)

Ramunia closing in on RM150m Shell deal
Ramunia Holdings, an oil and gas company partly owned by Lembaga Tabung Haji, is close to securing a RM150m contract from a unit of Shell Malaysia, sources said yesterday. It is understood that the contract is from Shell Malaysia’s upstream operating company Sarawak Shell. Just two weeks ago, Shell Sarawak and its partner Petronas Carigali SB signed two new exploration and production sharing contracts (PSCs) offshore Sarawak with Petroliam Nasional. According to Shell, the minimum financial commitment for activities in the two blocks would be in the region of USD145m (RM444m) over the next four years. (BT)

Scomi eyes RM2.5bn job in Brazil
Scomi Engineering, a 67%-owned subsidiary of Scomi Group, is eyeing a new monorail project in Brazil, which is estimated to be worth more than RM2.5bn. While details on the project are sketchy, it is understood the 20km monorail job is in Sao Paulo. If awarded the contract, it would be the second monorail project for Scomi in Sao Paulo. Scomi had won two monorail projects in Brazil – in Sao Paulo and Manues – over the past year. They are worth a combined RM5.2bn. (BT)

DiGi earnings down but revenue rises
DiGi.Com posted a 3.3% drop in net profit to RM320.6m for the first quarter compared with the corresponding period a year ago. However, the company recorded a 9.6% increase in revenue to RM1.6bn in the quarter from RM1.4bn previously, driven mainly by data business which accounted for about 31% of total revenue. In another statement, DiGi also announced yesterday that its wholly-owned subsidiary DiGi Telecommunications SB would undertake a proposed capital reduction via par value reduction from RM1 to RM0.01 per share which will translate into RM495m proceeds. (StarBiz, Malaysian Reserve)

KUB not selling A&W franchise
KUB Malaysia has no plans to sell off its fast-food restaurant franchise business, A&W Malaysia, an industry source said. It was reported recently that the company would be disposing of 45% equity in the fast-food restaurant business to Ekuiti Nasional (Ekuinas). (StarBiz)


Ramunia closing in on RM150m Shell deal
Ramunia Holdings Bhd, an oil and gas company partly owned by Lembaga Tabung Haji, is close to securing a RM150 million contract from a unit of Shell Malaysia, sources said. It is understood that the contract is from Shell Malaysia’s upstream operating company Sarawak Shell Bhd. (Source: Business Times)

Proton: Most Preve buyers prefer turbo-equipped variants
Proton Holdings’ MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said over 73% of the bookings for Proton Holdings’ new model, Preve, are for the turbo variants. He said the strong demand for the turbo variants was driven by the interest of the public in performance cars. He said to-date, the national carmaker had received over 4,200 bookings for various variants of the Preve since booking opened last month. (Bernama)

Yeo Hiap Seng: Sales from Indonesia to surpass Malaysia
After its sales in Indonesia more than tripled in 2011, Yeo Hiap Seng (YHS) expects revenue from Indonesia to surpass that of Malaysia. YHS’s COO, Ong Chay Seng said that the Indonesia market potential is huge and will overtake Malaysia in contribution of revenue to the company due to the size of its population. (Financial Daily)

Banking: 11 banks join MyClear's RMB settlement services
11 banks have joined the Malaysian Electronic Clearing Corporation Sdn Bhd's (MyClear) Renminbi settlement services in the Real-time Electronic Transfer of Funds and Settlement System (RENTAS). They are Malayan Banking Bhd, CIMB Bank Bhd, Public Bank Bhd, Hong Leong Bank Bhd, RHB Bank Bhd, AmBank (M) Bhd, Alliance Bank Malaysia Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, Hong Leong Investment Bank Bhd  and OSK Investment Bank Bhd. MyClear said the service would enable trade settlements in renminbi between businesses in Malaysia and China, as well as Renminbi funds transfer. Financial institutions that joined before May 18 would enjoy the RMB RENTAS service fee waiver until Dec 31. (Bernama)

Government: 4 parties apply for exemption from Competition Act
4 parties from the logistics, insurance, and food industries have applied to Malaysia Competition Commission (MyCC) to be exempted from complying with the Competition Act 2010. The parties comprise one individual and 3 block applicants. The block applications came from 5 trade bodies – the Life Insurance Association of Malaysia (LIAM), Association of Malaysian Hauliers, a joint application by the Malaysian Shipowners Association, Shipping Association of Malaysia and Federation of Malaysian Port Operators Council. The sole individual applicant is Nestle Products Sdn Bhd. Under the Act, the onus is on the applicants to prove that their current commercial agreements or arrangements qualify to be exempted. (StarBiz)

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