Monday, June 18, 2012

20120618 1034 Malaysia Corporate Related News.

Ananda may re-list Astro by end-September
Malaysian tycoon T. Ananda Krishnan plans to re-list Astro All Asia Networks by end-September in a deal that would give the pay-TV firm a market capitalization of up to RM15bn, sources said. "We are looking at the week from 17 Sept," a source said. "Our target is to achieve a market capitalization of between RM11bn to RM15bn, hopefully everything goes smoothly." A second source said the book-building process would start in August or September. If the IPO goes well, it will join a stable of listed Ananda-linked firms such as telco Maxis and oil and gas services provider Bumi Armada that have a combined market capitalization of RM60bn. (StarBizWeek)

MSM signs long-term contracts for stable pricing with vendors
Sugar producer MSM Malaysia Holdings has entered into two long-term contracts with raw sugar vendors to secure consistent supply of raw sugar vendors to secure consistent supply of raw sugar at fixed prices. It said the long-term contracts with Louis Dreyfus Commodities Suisse SA and Sucres Et Denrees have been renegotiated and renewed for the next three years starting 1 Jan 2012 and expiring on 31 Dec 2014. The pricing terms shall take into account the then prevailing global market price at that time, it said. (Malaysian Reserve)

Felda institutional price fixed at RM4.55
Felda Global Ventures Holdings' institutional price and final retail price have been fixed at RM4.55 and RM4.45 respectively, in respect of its IPO. Felda said as the final retail price was lower than the retail price, a refund of RM0.10/ share will be made without any interest to its applicants within 10 market days from 15 June 2012. Meanwhile, Felda's shares of RM1 each, is subject to stabilizing action by its stabilizing manager, who may buy up to 109.45m shares solely for purposes of covering over-allotments of the shares in the IPO. (Malaysian Reserve)

Sime expects Weifang port earnings to triple
Sime Darby, Malaysia’s largest conglomerate, expects earnings for its port operations in Weifang to triple to more RM138m within as early as three years. For the financial year ended 30 June 2011, Weifang Sime Darby Port registered a profit before interest and tax of RM46.5m. It is the biggest revenue and earnings contributor to the group’s energy and utilities division in Shandong. Sime Darby’s port operations in Weifang, Shandong province, currently serve mainly as a dry bulk port and have the capacity to handle 18m tonnes of cargoes. (BT)

UDA set to begin Tg Tokong job
UDA Holdings' redevelopment project at Tanjung Tokong in Penang is expected to generate RM1.8bn in gross development value. Chairman Datuk Nur Jazlan Mohamed said the redevelopment project would begin once the Penang government granted it a start-work order. The residential and commercial mixed development project, to be developed on a 9ha land, is expected to take four years to complete. He said the commercial development would include a supermarket, a community hall and a recreational area while the residential development will comprise apartment units for 1,200 families. Nur Jazlan said the apartment project would be developed at a cost of RM165m, with each unit to be between 800 sq ft and 850 sq ft in size. (BT)

Pricey valuations not an issue
Khazanah Nasional's healthcare investment arm, IHH Healthcare, is set to come to market as one of the highest price-earnings ratios (PER) among companies making their debut on the local exchange this year. But that is unlikely to dim investor appetite for the stock. IHH already has 22 cornerstone investors lined up. A source said the book-building tranche is already five times covered, based on the spillover demand from the cornerstone offering. Based on the cornerstone offer price of RM2.85, IHH is priced at 93 times pro forma FY11 earnings per share (EPS) of 3.05 sen. in comparison, the median PERs for healthcare operators in the Asia-Pacific's emerging markets is only 15.3 times, according to Bloomberg data. (Financial Daily)

PFC plans to double order book by this quarter
PFC Engineering SB, a candidate for a reverse take-over (RTO) by PFCE, plans to double its order book to RM2bn by this quarter. Managing director Abdul Malek Omar said the company was awaiting the results of its bid for engineering, procurement, construction and commissioning (EPCC) and long-term maintenance contracts amounting to RM1.5bn by this quarter. Abdul Malek said RM600m of the RM1.5bn total package consisted of EPCC contracts while the remaining RM900m was for long-term maintenance contracts. According to industry sources, the contracts are largely expected to come from Petroliam Nasional (Petronas). (StarBiz)

CIMB: Indonesian unit on a roll. CIMB Group Holdings predicts that in three years, PBT contribution from its Indonesian unit will beat its Malaysian unit. CIMB also affirmed its plan for a dual listing on the Indonesia Stock Exchange. (Source: Business Times)

MAS: To double Asia Pacific routes in 2015. Malaysian Airline System Bhd (MAS) intends to double its Asia-Pacific destinations in three years as part of its turnaround plan. The carrier may fly to 25 cities in countries including China, Japan and India by 2015 compared to 13 regional destinations now. Flights on some existing routes will also be increased by as much as 50%. (Source: Malaysian Reserve)

OSK may look at new core business
OSK Holdings Bhd, which is in the midst of merging its investment bank with RHB Capital Bhd, will possibly look for a new core business upon completion of the current merger deal with RHB.“Our focus is ensure that the deal is completed,'' said Tan Sri Ong Leong Huat, director of OSK Holdings. (Source: The Star)

Banks eyeing MBf’s card business
Several medium-sized banks are said to be looking to acquire the credit card business of MBf Holdings Bhd. Senior industry officials say at least two banks have shown interest in the card business, which has significant reach in the industry. (Soure: The Edge)

KUB streamlining fast food business
KUB Malaysia Bhd is streamlining its fast-food restaurant franchise businesses, A&W in Malaysia and Thailand, and concentrating on profitable outlets. Group managing director Datuk Wan Mohd Nor Wan Ahmad said the group was currently undertaking a corrective strategy and reviewing the performance of each outlet. (Source: The Edge)

Tan Chong Motor: Gears for regional expansion
Edaran Tan Chong Motor Sdn Bhd (ETCM) expects to achieve the targeted 15% share of the regional car market in the next  5 years with new distribution rights in Indochina and the launch of a new model for the lucrative mid-sized family sedan market in Malaysia. The company has secured franchise distribution rights in Laos, Cambodia and Vietnam, while it will introduce Nissan Almera in the later part of this year. ETCM, the local distributor of Nissan vehicles, is looking outside Malaysia to boost growth as it anticipates a marginal car sales growth in this country. ETCM executive director Datuk Dr Ang Bon Beng said ETCM is also trying to secure distribution franchise in other Asean countries, which Ang would not disclose just yet. He said the tax benefits for automotives in other Asean countries is another reason for the company's regional expansion. Ang said ETCM's factory in the peninsular could produce components for all its sister companies in the Asean countries. (Business Times)

Sarawak Cable: Says it has capability to develop several small projects in the country
Sarawak Cable (SCB), which will build its first mini hydro-power plant in North Sumatra, Indonesia, plans to develop several similar projects in Peninsular Malaysia. Group MD and CEO Toh Chee Ching said the company had secured financing of US$15m (RM47.5m) from a local bank to fund the mini hydro dam project in North Sumatra. He said the proposed 10MW mini hydro power plant will take two years to complete. SCB paid RM5.5m recently for a 65% stake in Pt Inpola Mitra Elektrindo (IME), which has been awarded a power purchase agreement (PPA) by PT Perusahaan Listrik Negara (PLN) Persero to design, finance and construct a mini hydro power plant in North Sumatra. On completion of the power plant, Toh said IME's sale of electricity to PLN for 20 years with renewable concession would contribute to SCB group's long-term revenue and profit and enhance its growth potentials. (StarBiz)

Sarawak Plantation: To carry out planting of oil palm trees on 8,500ha
Sarawak Plantation (SPB) is carrying out new planting of oil palm trees on 8,500ha this year. Group MD Datuk Hamden Ahmad said land clearing activities for areas in Mukah, Sri Aman and Sibu-Sarikei had been completed. We will carry out planting in the next few months, he said on Saturday. The company has allocated RM150m for capital expenditure this year. Hamden said SPB group had total landbank of nearly 52,000ha, inclusive of 12,900ha under native customary rights (NCR) joint ventures, at end-2011. The group has more than 29,500ha of oil palm estates, of which 12.4% are immature fields. About 25% of the estates are aged four and 10 years, 36.7% between 11 and 15 years, 10.4% between 16 and 20 years and 15.5% more than 20 years old. Hamden said SPB was on the look-out for possible acquisition of oil palm plantations in line with its group expansion plan. (StarBiz)

Syarikat Takaful Malaysia: Plans special purpose vehicle in Labuan IOFC
Syarikat Takaful Malaysia (Takaful Malaysia) will set up a wholly-owned subsidiary as a special purpose vehicle (SPV) in Labuan International Offshore Financial Centre (IOFC) to invest and hold its overseas property investment. Earlier, Takaful Malaysia said it would venture into the overseas property investment market for the benefit of its stakeholders. It is now close to concluding a deal, in the UK property market. To realise this, it is considering the Labuan IOFC as a platform to hold all its overseas property investments. Takaful Malaysia group MD  Datuk Mohamed Hasan Md Kamil said  although most companies will consider Jersey or Guernsey offshore centre to set up the SPV company, Takaful Malaysia believes that Labuan IOFC is seen to offer better advantages over the others. (StarBiz)

CB Industrial Product: To bank on current interest to cultivate oil palm
CB Industrial Product Holdings (CBIP) will focus on increasing its order book for its Modipalm mills in Malaysia and overseas while pursuing acquisitions of greenfield landbank in Indonesia for oil palm plantations this year. MD Lim Chai Beng said the current strong interest to cultivate oil palm especially in Indonesia, Central America and Africa as a mean to eradicate poverty would provide CBIP with the opportunity to increase its order book. Lim said CBIP would be looking at a new market segment while targeting at older and underperforming mills especially in Malaysia and Indonesia. In addition, the group expects increasing demand for back-up boiler system as more palm oil mills seek to minimise the risks of down time. For the overseas market, he said CBIP would be able to cater for the construction of Modipalm mills from as low as 4-tonne per hour mill in Africa and Central America where palm oil plantations are still in their infancy. Depending on the scope and specification of supply, the price for the Modipalm mill can range from RM40m to RM70m per unit. (StarBiz)

Construction: Sector may not generate RM5bn worth of jobs in Penang
The construction and renovation industry in Penang may not be able to generate RM5bil worth of jobs this year as forecast by the Penang Master Builders' and Building Materials Dealers Association (PMBBMDA). PMBBMDA president Lim Kai Seng said there had been a lower demand for construction materials from the residential housing segment since late last year. For 1Q 2012, according to the latest CIDB report, the construction and renovation industry of Penang generated about RM543mil worth of jobs for PMBBMDA members. Of the RM543m worth of contracts, about RM133m were government jobs, while the remaining RM409m were from the private sector. (StarBiz)

Steel: Tunku Yaacob’s Maegma to set up US$1.5bn steel plant
Maegma Steel Sdn Bhd, a private company linked to Tunku Yaacob Tunku Abdullah, is in the final stage of laying out plans to set up an integrated steel mill in Manjung, Perak, at a cost of US$1.5bn (RM4.78bn). The plant, with an annual production capacity of 1.5m tonnes, is slated to combine all these stages of steel making  – raw iron production using the direct reduction process, steel making in a melt shop with an electric arc furnace and ladle furnace, and producing hot rolled coils (HRC), better known as flat steel. Talks between the company and Petronas Gas for the supply of natural gas as fuel are understood to be at an advanced stage, with the linking of a supply deal likely to be concluded by month end. Other essential elements for the plant, namely the supply of electricity and iron ore as raw material, have already been sorted out. (The Edge Weekly)

Telecommunication: U Mobile, Intel, Acer tie-up to offer bundle plans
U Mobile Sdn Bhd, a third-generation (3G) service provider, will collaborate with Acer and Intel Malaysia to launch unique bundled packages targeted at business users. Its CEO, Jaffa Sany Ariffin, said the collaboration marked the coming together of three entities which were dynamic and responsive to their target audiences. He said U Mobile was the first telecommunication company in the country to collaborate with Intel and Acer to bundle the Ultrabook with its broadband plans. He said that we are targeting more high-end users with the launch of the new ultra-thin 19.7mm Acer M3 Ultrabook powered by the 2G Intel Core i5 processor. Jaffa said six free standing kiosks had been set up by U Mobile and Intel in U Mobile stores in Berjaya Times Square, 1Utama, Sunway Pyramid, Pikom IT Mall, Queensbay Mall Penang and Taman Molek Johor Bahru. The kiosks will give customers a chance to experience the Acer M3 Ultrabook running with U Mobile's high-speed broadband service. He said the company planned to open more kiosks in other U Mobile stores. Jaffa said the bundle would benefit customers who valued the best in mobility and connectivity. (StarBiz)

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