Friday, June 15, 2012

20120615 1146 Malaysia Corporate Related News.

More management changes are underway at Malaysian Airline (MAS) with CFO Rozman Omar to re-join his previous company AirAsia as regional head of finance effective July. The departure of Rozman follows the announcement of group deputy CEO Mohammed Rashdan Yusof’s resignation. Another key official roped into MAS from AirAsia is engineering head Azhari Mohd Dahlan. Sources say it would not come as a surprise if Azhari leaves MAS to go back to AirAsia. AirAsia group CEO Tan Sri Tony Fernandes said Datuk Bernard Francis will re-join the group as commercial head of Indonesia AirAsia. Francis was with AirAsia until 2005 after which he joined MAS and held the position as senior general manager of network, revenue management and distribution, but later left MAS in 2011. AirAsia is due to announce the appointment of a new CEO to replace Fernandes on Monday. The low-cost carrier expects to place an order of 50 to 100 A320 planes in one or two months to cater to its expansion plans in the near term, Fernandes added. (Financial Daily)

MSM Malaysia Holdings (MSM) has set aside about RM100m to acquire sugarcane plantations in South-East Asia as part of its upstream business, its executive director Datuk Sabri Ahmad said. "We are looking at places like Lombok in Indonesia and Myanmar due to suitable agro-climatic conditions. We are still in negotiations with some parties there," said Sabri. Sabri added that the RM100m was part of the RM423m that it raised from its initial public offering in June last year. MSM CEO Chua Say Sin said the company has also set aside RM85m in capital expenditure this year. (Malaysian Reserve)

Malakoff is planning an IPO that may raise US$1bn (RM3.2bn) and value Malakoff at US$3.5bn (RM11.5bn). The company which is 51% owned by MMC Corp has invited six banks to submit proposals for the IPO by 18 June. The share sale may take place by the end of 2012. (Bloomberg)

Dialog Group has commenced operations of its Jubail Supply Base in Saudi Arabia with the award of a RM17m contract from Snamprogetti Saudi Arabia Co Ltd. The supply base, which requires an investment of approximately RM93.5m, serves as a one-stop integrated offshore logistic hub and a resource centre for oilfield services, equipment and supplies. The contract from Snamprogetti calls for logistic services to move cargo from land to offshore work site for a Saudi Aramco development. (BMSB)

Wah Seong Corp and little known Pan Sarawak Holdings have emerged as the front runners to acquire a strategic 26.9% equity interest in oil services company Petra Energy. Wah Seong deputy MD Giancarlo Maccagno acknowledged that the company was interested in the block. "We are interested in it, but we have yet to make any official bid... we are always on the lookout for good deals," said Maccagno. (Financial Daily)

Pudu Jail could be redeveloped into an integrated transport hub complete with a shopping mall, to attract domestic and foreign direct investments, UDA Holdings chairman Nur Jazlan Mohamed said. UDA is in favour of EICEC's proposal, which moves along the lines of Elements, a large shopping mall with an ice rink and a 1,600-seat cinema that is located directly above the Kowloon MTR station in Hong Kong. The MOF's plan favours splitting the 8ha plot into three parcels, mainly to be given to bumiputera developers, the paper reported. The Pudu redevelopment is part of the ETP to transform Malaysia into a high-income nation by 2020. (SBT)

Fajarbaru Builder is understood to have submitted bids to build stations for the RM40bn MRT project. It is eyeing contracts to build MRT stations under packages S4 and S5, which closed on May 28 and June 11, respectively. It is understood that the combined value of the two packages to build the seven stations is about RM650m. Other companies which had also submitted proposals are WCT, Sunway, Muhibbah Engineering, and IJM Corp. Their bids range between RM550m and RM700m. (BT)

The importation of eight tariff lines of alloy steel products will be subject to licensing requirements from 15 June, the International Trade and Industry Ministry (MITI) said. The imposition of import licensing requirements will ensure that imported alloy steel products meet established quality and safety requirements. It is also to facilitate the monitoring of trade in these products. (Bernama)

Dutch Lady Milk Industries is on track to meet its RM1bn revenue target in FY13, even as the current year’s challenges remain unpredictable. Dutch Lady, which turns 50 next year, posted a revenue of RM810m in FY11, while its revenue in the first quarter ended 31 March 2012 was RM214m. The dairy company, which controls 19% of the total dairy market in Malaysia, expects its performance this year to be affected by the global economic uncertainties and potential high dairy prices. Nevertheless, MD Rahul Colaco projects that Dutch Lady will be able to outperform the market, which in the past 12 months to May 2012 has been growing by about 6%. "We are ambitious to grow faster than the market and to outgrow our competitors," he said, adding that an AC Nielsen report revealed that the market has slowed since 2011 when it grew at 8.5%. Dutch Lady's two main production is powdered milk for children under the Dutch Lady and Friso brands and liquid milk. It commands a 22% market share in children's powdered milk, just a percentage shy of leading rival Dumex. In the liquid milk, Dutch Lady ranks first, controlling half of the market. Its closest competitor is another Dutch company, Nestle, which holds a 20% share. Colaco said that it is looking at a possible less than 2% price increase on some specific products in 2012. Last year, prices of selected products were up by an average of 5%. The company, which is part of the world's largest cooperative, The Royal FrieslandCampina, has a slight advantage in terms of sourcing for dairy raw materials. "We are able to buy at the right time at the right price, which helps give a competitive advantage in terms of slighter better purchase price," Colaco said. In anticipation of higher demand for liquid milk in 2013, the company will expand its capacity. However, no investment figure was revealed. (BT)

KPJ Healthcare hopes to conclude two acquisitions by year-end, said MD 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," said Siti Sa'diah. She said KPJ was keen on acquiring operational hospitals and was more interested in Asean than other regions. Local standalone hospitals were also its potential acquisition targets. (StarBiz)

Bina Puri Holdings secured a RM31.8m job to build a mini hydro power plant in Indonesia via its 80% indirect subsidiary, PT Megapower Makmur. The tenure of the power purchase agreement for the plant is 15 years effective from the date of commercial run of the power plant and the construction period for the plant shall take 24 months. (Malaysian Reserve)

Conglo: Johor Corp's MYR3b Islamic MTN oversubscribed 3.68 times. Johor Corporation's MYR3b Islamic medium term notes (IMTN) programme, issued under the Wakalah Billstithmar, was oversubscribed by 3.68 times. The IMTN received strong interest from financial institutions, insurance and Takaful companies, asset managers and corporate investors. (Source: The Star)

Port: Seaport Terminal wins bid for Penang Port. Seaport Terminal (Johor) Sdn Bhd is the successful bidder for the proposed privatisation of Penang Port Sdn Bhd. Nevertheless, negotiation with the company on the privatization agreement is still ongoing. (Source: The Star)

Takaful Malaysia: Close to sealing UK property investment deal. Syarikat Takaful Malaysia Bhd is close to concluding an overseas investment deal specifically in the UK property market which would mark its foray into overseas property investments. (Source: The Star)

Ramunia: Gets MYR177.5m contracts from Sarawak Shell. Ramunia Holdings Bhd's unit has secured two contracts worth MYR177.5m from Sarawak Shell Bhd to fabricate the substructure and topsides for its platforms. Ramunia Fabricators Sdn Bhd received the letter of awards from Sarawak Shell to undertake the contracts which ranged from fabrication to testing, load-out and tie-down of the substructures and topsides. (Source: The Star)

Pos Malaysia: Looks to grow income streams. Pos Malaysia Bhd will spend MYR150m annually over the next five years to diversify its revenue streams. Between 2015 and 2017, Pos Malaysia aims to establish regional presence via alliances or partnership and hopes to register significant revenue from overseas operations. (Source: Business Times)            

Sime Darby to spend RM1.4bn on Weifang port
Sime Darby plans to invest some RM1.4bn in the next three years to expand its port operations in Weifang, Shandong province in China. The investment will help Weifang Sime Darby Port raise its capacity from about 18m tonnes of cargo a year to over 50m tonnes by 2017. The group may top up another RM350m to expand the port further. Weifang Sime Darby Port is located in the prime region of Bohai Sea’s economic belt and handles 30 different types of cargo including coal, petroleum and liquid products. (BT)

Kenanga buys ECM Libra IB for RM875m
K&N Kenanga has sealed the deal to purchase ECM Libra’s investment banking and stockbroking businesses for RM875m. The purchase will be satisfied by RM650m cash and the issuance of 95m unsecured loan stocks and 120m new Kenanga shares to ECM Libra, according to sources. The RM875m price tag values ECM Libra IB at 1.27x book value of RM688m as of 31 Jan 2012. The total cash payout for the deal is RM0.68 per share, while the new Kenanga shares and loan stocks are valued at RM0.63 and RM0.05 per share. (Financial Daily)

Uncertainty looms over MEX sale
Maju Holdings’ proposed RM1.7bn sale of Maju Expressway (MEX) to EP Manufacturing (EPMB) appears to be in limbo, as it has emerged that Maju Holdings has yet to obtain the government’s approval to sell the highway concession 3 months after the proposal was announced. Both parties have agreed to extend the period for the fulfillment of the acquisition agreement’s conditions to 14 Aug from 15 June. The bone of contention is that Maju Holdings was given RM976.7m in government funding for the construction of the elevated portion of the highway that runs between KL and Sepang. The opposition party is against the proposed sale, saying the government should buy back the concession. (Financial Daily)

MAS: MASkargo to pay RM20.5m in five installments to settle alleged price fixing
MASkargo Sdn Bhd has agreed to pay a penalty of A$6m and contribute A$500,000 to the Australian Competition and Consumer Commission's (ACCC) legal costs (approximately RM20.5m) in five  installments over 24 months to settle an alleged price fixing litigation. Under the terms of the settlement, MASkargo admits - for the purpose of the proceedings only  - that it reached an understanding with certain airlines regarding the level of fuel surcharges from 2002-2005, security surcharges from 2001-2005 and customs fees from 2004-2005, to be applied in relation to the supply of services from Indonesia to Australia, said MASkargo. MAS and MASkargo were served with a Statement of Claim by the ACCC on April 9, 2010. The settlement ends the ACCC's claims against MAS and MASkargo in relation to the alleged price fixing of surcharges relating to certain air freight services, MASkargo said. On Thursday, the Federal Court of Australia made orders consistent with an agreement between Malaysia Airlines (MAS), MASkargo and the ACCC to settle the Air Freight litigation. MASkargo said the settlement follows that by Qantas, British Airways, Air France/KLM, Cargolux, Martinair, Japan Airlines and Korean Airlines. (Bernama)

Axis-REIT: To buy Wisma Academy, Annex for RM85m
Axis REIT trustee, OSK Trustee Bhd has entered into two sale and purchase agreements to acquire Wisma Academy and the Annex in Petaling Jaya for RM85m from Academy Resources Sdn Bhd. Stewart LaBrooy, CEO of Axis REIT Managers Bhd, the manager of the trust, said with the proposed acquisitions, the gearing level of the trust would be at 35%. He said as part of the trust’s capital management strategy, it has proposed to allot and issue up to 90.7m new units, representing up to 20%, of the existing approved fund size of Axis REIT of 453.8m units. (Financial Daily)

UEM Land: Maintains RM3bn sales target despite Euro woes
UEM Land is maintaining its target of RM3bn sales for this year despite concerns over the Eurozone crisis as its projects in Nusajaya have the "ingredients" to woo a wider investor base from local and foreign investors from China and the United Kingdom. MD and CEO Datuk Wan Abdullah Wan Ibrahim said the projects, which contributed 45% to revenue, were attractive to investors due to their new catalyst development to drive growth in the Nusajaya region. He said that these include retail projects, campuses for research, industrial parks for small and medium enterprises and all types of residential properties. (Bernama)

TAS Offshore: Unit lands new contract worth RM49m
TAS Offshore’s unit has secured a new contract for the sale of a unit of anchor handling tug/oil recovery/support vessel for RM49m. TAS said the vessel was being sold to one of its overseas customers that had purchased 17 vessels from the company. It said the vessel was expected to be delivered by early 2014. (Financial Daily)

Genetec Technology: Order book swells to RM149.3m with new jobs
Genetec Technology’s current order book-to-date rose to RM149.3m after the company secured new orders worth RM36.9m. The company said the order book was expected to contribute positively to its earnings for its financial year ending March 31, 2013. Genetec executive chairman Ron Ortscheid said the current order book of RM149.3m was about 2.8x more than its previous order book showed the sustainability of its earnings in the coming quarters. He said the company saw increased orders from overseas especially from the United States. Ortscheid said that while Hard Disk Drive (HDD) sector remained its main revenue contributor, the company had clinched orders across several non-HDD sectors, which accounted to approximately 48% of total order book. (Financial Daily)

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