Thursday, June 14, 2012

20120614 1006 Malaysia Corporate Related News.

Starhill REIT buys Aussie hotels
YTL Corp’s Starhill REIT is expanding its international footprint with the acquisition of three Marriott hotels in Australia for RM1.31bn (AUD415m). The purchase of the Marriott hotels in Sydney, Brisbane and Melbourne will give Starhill REIT the largest portfolio overseas property assets of any Malaysian REIT. “This acquisition will enlarge the trust’s portfolio to approximately RM3bn from RM1.58bn,” said Tan Sri Francis Yeoh, chief executive of Projek Pintar SB, the manager of Starhill REIT. Yeoh is also the largest shareholder of Starhill REIT through YTL Corp, which owns 56.4% of the trust. (Financial Daily)

TRC gets RM194m contract from Bintulu Port
TRC Synergy’s wholly-owned subsidiary, Trans Resources Corp SB, has accepted a RM194.0m contract from Bintulu Port Holdings to develop the Samalaju Port in Bintulu. In a filing with Bursa Malaysia, TRC said the project was expected to strengthen the group’s operations in Sabah and Sarawak. However, the project would not have any effect on the issued and paid-up share capital, substantial shareholders’ shareholdings, net assets per share, and gearing of the company and its subsidiaries. (Financial Daily)

MSM has RM100m to buy sugar plantations in Southeast Asia
Malaysia’s largest sugar refiner MSM Malaysia Holdings (MSM) has set aside about RM100m to acquire sugarcane plantations in South-East Asia as part of its plans to expand its upstream business, its executive director Datuk Sabri Ahmad said. The company says it’s looking at Indonesia and Myanmar to acquire these sugarcane plantations. In another development, MSM is in the process of converting its 5,000ha of sugar cane plantations in Perlis to rubber estate. Executive director Datuk Sabri Ahmad said the land is no longer suitable for sugar cane due to climatic conditions. (Malaysian Reserve) (Financial Daily)

MSM Malaysia: To invest RM85m to upgrade refineries
MSM Malaysia Holdings is investing RM85m to upgrade its sugar refineries. Its CEO Chua Say Sin said on Wednesday the funding for the upgrading would be financed from its initial public offer proceeds. Chua said as sugar consumption is expected to increase in Malaysia and globally, MSM is to grow a strong and sustainable business for all its stakeholders. The immediate focus is to upgrade production facilities, expand export sales and pursue strategic investments in new markets. (StarBiz)

AirAsia eyes 5 more regional tie-ups
AirAsia will work on five more joint ventures with regional airlines over the next two years to position itself as a global brand on top of the one that was signed with Japan's All Nippon Airways.”We need to pivot to a wider, regional lens from the first decade's focus, which was largely domestic,” chief executive officer Tan Sri Tony Fernandes said. “Shifting AirAsia's emphasis to a regional strategy is not just good business, but also a move that will keep up ahead of the inevitable competition that is heading our way,” Fernandes said at a press conference yesterday. He also said that the company was considering to add a fleet of 50 planes to meet its operations' needs. The 75 aircraft that were ordered are expected to be delivered by 2016. (StarBiz)

Fajarbaru eyes MRT deals
Fajarbaru Builder Group is understood to have submitted bids to build stations for the RM40bn MyRapid Transit (MRT) project. Business Times understands that Fajarbaru is eyeing contracts to build MRT stations under packages S4 and S5, which closed on 28 May and 11 June, respectively. The combined value of the two packages to build the seven stations is about RM650m. Fajarbaru executive director Teo Sock Cheng confirmed that it had submitted the bids to MRT Corp, but declined to reveal the value. (BT)

KPJ Healthcare plans to conclude two acquisitions by year-end
KPJ Healthcare Bhd, which is on an aggressive expansion plan, hopes to conclude two acquisitions by year-end, said managing director Datin Paduka Siti Sa'diah Sheikh Bakir. “There are offers which we are assessing both locally and internationally. We hope to conclude at least one local acquisition and one overseas by year-end,” Siti Sa'diah told StarBiz in an interview. However, she did not reveal the size of the acquisitions. She said KPJ had been looking for potential acquisitions continuously. ”We're ready for two acquisitions a year and also to build two hospitals a year.” (StarBiz)

Felda Global: Set to price IPO at top end
Felda Global Ventures Holdings is set to price up to US$3.2bn IPO on Wednesday at the top of an indicative range, as strong demand from domestic investors helps it counter a recent global trend of failed listings. Three sources with direct knowledge of the deal  said the company priced the IPO at RM4.55 a share, near the top of a RM4.00-RM4.65 indicative range. The deal, the world’s second biggest  IPO this year behind Facebook Inc’s US$16bn offering, will put Kuala Lumpur neck and neck with China’s Shenzhen as the main IPO destination in the Asia Pacific region, leaving behind Hong Kong, which grossed the highest IPO proceeds in the world in 2010 and 2011. The IPO also underscores how Malaysia’s equity market has been partially insulated from global volatility because it is dominated by local investors and a large domestic pension fund system. (Business Times)

Maybank: Acquires stake in Luster Industries
Maybank has emerged as a substantial shareholder in Luster Industries with a 5.95% stake in the latter. The bank announced that it had acquired 64.2m shares of 10 sen each in Luster. It said the subscription was made pursuant to the exercise of debt to equity conversion in accordance with a debt settlement agreement dated Nov 25, 2011 involving Luster. A PN17 company, Luster is an integrated manufacturer of high precision and precision plastic parts and components. As part of its proposed regularisation plan, Luster is looking to settle RM64.4m in debt via the issuance of RM17.9m in loan stocks, 25.4m new ordinary shares of 10 sen each, and 263.8m new shares with 131.9m free detachable warrants. The shares and warrants were part of an exercise that saw the company issue a total of 834.1m new shares alongside 441.6m free detachable warrants. (StarBiz)

MMC Corp: May be looking at RM3bn IPO of Malakoff
According to two people with knowledge of the matter said, Malakoff is planning an IPO that may raise about US$1bn (RM3.2bn). The company, 51% owned by MMC Corp, had invited at least 6 banks to submit proposals for the IPO by June 18, said the people, who spoke on the condition of anonymity because the process is private. They said the share sale might take place by the end of this year. Malakoff was publicly traded until it was acquired by MMC in 2007 for RM9.3bn, according to data compiled by Bloomberg. A source even said the IPO might value Malakoff at as much as US$3.5bn (RM11.4bn). (Bloomberg)

Dutch Lady: MD says company on track to achieve RM1bn sales target in 2013
Dutch Lady’s MD Rahul Colaco says the group is on track to reach its RM1bn sales target for 2013, driven by the strength of its brand and market position, despite the slowdown in the local dairy industry. He said that the growth of the local dairy industry was expected to reach between 6% and 7% this year, compared with last year's 8% to 9%. Colaco also said that the group is always striving to increase its products' prices  only moderately and aimed to minimize the effects on consumers. (Bernama)

MAS: More changes in management
More management changes are under way at MAS with CFO Razman Omar tipped to leave the national carrier. Sources said Rozman has tendered his resignation and plans to re-join his previous company AirAsia as regional head of finance effective July. According to  a source, Rozman is leaving despite attempts by the major shareholders of MAS and his key officials to get him to stay on at the national carrier. The departure of Rozman follows the announcement of deputy group CEO Mohammed Rashdan Yusof’s resignation effective end of this month. (Financial Daily)

DRB-Hicom: Proton Prevé exceeds 11,000 bookings
In just two months after launch, Proton Prevé has commanded a total booking of 11,310 units, making it the most popular 1.6-litre sedan in the market. Proton Holdings Executive Chairman Datuk Seri Mohd Khamil Jamil said a total of almost 1,000 units were booked by eager customers as early as March, a month before the launch while another 4,893 units were booked in the month of April. (Business Times)

Dialog Group: Saudi Arabia supply base starts operations
Dialog Group's supply base in Saudi Arabia, which saw the company invested about RM93.5m, has started operations. It said on Wednesday its 60%-owned Dialog Jubail Supply Base Company Ltd (DJSB), had secured a long-term contract from Snamprogetti Saudi Arabia Co Ltd to provide logistic services. Dialog's intention to set up the Jubail supply base was to be a one-stop integrated offshore logistic hub and resources centre for oilfield services, equipment and supplies, supporting the active and growing offshore oil and gas activities in the Arabian Gulf. It said DJSB, had on June 11, secured the RM17m contract from Snamprogetti where its base services would be used to move project cargo from land to offshore work site for the Saudi Aramco Wasit gas development Hasbah offshore facility in Saudi Arabia. (StarBiz)

Wah Seong: Eying strategic stake in Petra Energy
Wah Seong  Corp and little-known Pan Sarawak Holdings Sdn Bhd have emerged as the frontrunners to acquire a strategic 26.9% equity interest in oil services company Petra Energy. Perdana Petroleum, formerly known as Petra Perdana is the current owner of the strategic block of shares in Petra Energy. The marine services company has given CIMB the mandate to sell the block of shares in April this year, under a bidding exercise that closes tomorrow. Based on Petra Energy’s closing price of RM1.25 Wednesday, the block has a market value of RM72.1m. When contacted, Wah Seong deputy MD Giancarlo Maccagno acknowledged that the company was interested in the block. Pan Sarawak executives could not be reached for comment. (Financial Daily)

Naim Indah Corp: LPG venture hits a snag
Naim Indah Corp’s (Ninorp) diversification into the liquefied petroleum gas (LPG) business has hit a snag. Nicorp said Aspire Rich Sdn Bhd had received a letter from Oman-based Natural Gas Co (NGC) stating that the agreement between the two parties to acquire the LPG assets from Shell Malaysia Trading Sdn Bhd had been terminated. Nicorp added that it was also informed that Aspire Rich was disputing the termination of the agreement and was seeking legal advice on the matter. (Financial Daily)

Tebrau Teguh: Iskandar Waterfront serves conditional mandatory takeover
Iskandar Waterfront Holdings Sdn Bhd (IWHSB) has served a notice of conditional mandatory takeover offer on Tebrau Teguh. Tebrau Teguh said the Feb 13 conditional share sale agreement where IWHSB would acquire 222m Tebrau Teguh shares or 33.15% from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) had become unconditional on Wednesday. As such, it said IWHSB is obliged to extend a mandatory take-over offer to  acquire all the remaining 447.7m Tebrau Teguh shares (66.85%)" for 76 sen per share. IWHSB had received an irrevocable undertaking from KPRJ that it would not accept their remaining shareholding of 53.6m shares representing 8% of the Tebrau Teguh's paid-up capital. (StarBiz)

Scomi Engineering: Mumbai monorail project to commence operations in January
Maharashtra Chief Minister Prithviraj Chavan announced  that the first phase of the  9km Mumbai Monorail project is scheduled to commence operations in January 2013. Scomi Engineering Country President, Kanesan Velupillai said that Scomi's India unit, Urban Transit Pte Ltd, would also be in charge of the operations and management of the full completion of the project for a duration of 6 years. He said they have a team of 60 personnel already trained in all aspects from operations control, depot, rolling stock maintenance and  they have the monorail drivers to run the system. Kanesan said the project was now undergoing testing prior to trial runs begins before the lead up to the commissioning. (Bernama)

Bina Puri: Subsidiary gets US$10m mini hydro plant contract
Bina Puri Holdings’ subsidiary will build and operate a mini hydro power plant in Sulawesi, Indonesia costing US$10m (RM31.80m). It said on Wednesday its 80% owned PT. Megapower Makmur had  signed an agreement with PT PLN (Persero) to undertake the project, which is the sixth in the region. It said the annual output of electricity produced is approximately 23,915 GWH.  It added that the tenure of power purchase agreement is 15 years effective from the date of commercial run of the  power plant. Bina Puri said construction would take 24 months. It expected the project to contribute positively to the group's earnings from FY 2014 onwards. (StarBiz)

Banking: Bank Mandiri delays plan to open branch in Malaysia
Bank Mandiri, has delayed a plan to open its first branch in Malaysia by year-end as it is waiting for the country's Financial Services Act (FSA) to be in place. The state-owned bank, which has long sought to expand into Malaysia and Singapore, in line with its ambition to be an Asean bank, currently has only a remittance business in Malaysia. In Singapore, it has a limited operating branch. Its CFO Pahala Mansury said from what they understand, there is going to be a new Act in banking that will allow foreign-owned banks to establish more branches and other forms of outlets. He said the bank wants to know, for example, what kind of flexibility it will have in terms of the number of branches it can establish and the kind of businesses it can offer. He said if it is feasible, Bank Mandiri expects to open a branch here, the first ever by an Indonesian bank, in as soon as six to nine months after the FSA takes effect, or at least once there is greater clarity on what it will entail and when it will take effect. (Business Times)

Construction: MRT’s RM1.6bn tender gets disappointing response
Three of the six pre-qualified companies have walked away from the RM1.6bn MRT train supply tender for the 51km Sungai Buloh-Kajang line without submitting a bid. Although an extension of one month had been given, South Korea’s Hyundai Rotem Company had pulled out, while Japan’s Kawasaki Heavy Industries Rolling Stock Co and Canada’s Bombadier Transportation decided not to submit bids. MRT Corp CEO Datuk Azhar Abdul Hamid said he was disappointed with the pullout and the failure by several of the shortlisted groups to make submission to participate in the tender. The agency had hoped for all six bids to come in. The 3 remaining bidders are Siemens SMH Rail Consortium from Germany and Chinese train-makers, Changchun Railways Vehicle Co Ltd and CSR Zhuzhou Electric Locomotive Co Ltd. The  3 groups will be subjected to a four-stage evaluation process and an award is expected in late July. (Financial Daily)

Oil & Gas: Terengganu home for refinery
Malaysia will house Asia's largest biorefinery complex in Terengganu. The complex, which the government has allocated RM170m for its infrastructure, is expected to generate a cumulative gross national income of RM20.4bn by 2020 and produce 2,500 green-jobs. The East Coast Economic Region Development Council (ECERDC) has teamed up with the Terengganu government and Malaysian Biotechnology Corp Sdn Bhd (BiotechCorp) to facilitate the project. ECERDC CEODatuk Jebasingam Issace John said with the biorefinery project, ECER now had secured more than RM10bn in investments. From the total, RM2.1bn investments were from Pahang, RM5bn from Johor and RM500m from Kelantan. Terengganu makes up the balance. ECERDC expects total investments to hit RM15bn this year. Jebasingam said the complex would be the first in Malaysia to use cellulosic feedstock to produce bioderivatives such as advanced carbohydrates, biochemicals, biomaterials, biofertilisers and active feed ingredient. (Business Times)

Steel: Government imposes import licence on alloy steel products
The International Trade and Industry Ministry announced that the importation of eight tariff lines of alloy steel products (HS 7225) will be subject to licensing requirements from June 15. In a statement, it said the imposition of import licence on these products was gazetted under the Customs (Prohibition of Imports) (Amendment) (No.2) Order 2012 on Tuesday. It said the imposition of import licensing requirements on these products will serve to ensure that imported alloy steel products meet established quality and safety requirements, and minimise the importation of sub-standards products. It is also to facilitate the monitoring of trade in these products. (Bernama)

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