Friday, August 10, 2012

20120810 1010 Malaysia Corporate Related News.

SapuraKencana Petroleum’s subsidiary, Kencana HL has received a letter of award from Kebabangan Petroleum Operating Company Sdn Bhd (“KPOC”) for the provision of hook-up and commissioning services for Kebabangan Northern Hub Development Project. The Contract comprises provision of hook-up and commissioning services for offshore facilities for the Kebabangan oil field located offshore Sabah. The company estimates that the total value of the Contract is approximately RM106m. The work for the Contract is expected to commence in middle of 2012 and is expected to be completed by middle of 2014. (BMSB)

RHB Bank-Mestika deal is still going ahead and the outcome will depend on the Indonesian authorities’ approval. It was reported that RHB Capital, which plans to acquire an 80% stake in PT Bank Mestika Dharma, expected to conclude the takeover by the third quarter of this year. (Bernama)

Local palm oil refiners are questioning the status of the export quota beneficiaries. An industry source said refiners wanted transparency in terms of the allocation and distribution of the quota to the beneficiaries which were dubbed "kings of the palm oil approved permit (AP)". "When the quota was first introduced, the criterion is for plantation-based refiners, plantation companies in East Malaysia and/or companies having joint-ventures overseas to supply CPO to their JV partners overseas," the source explained. However, some independent refiners are claiming that out of the 50 companies given the so-called APs last year, 50% were not related to plantation, refining or JV companies. Furthermore, the distribution of quota was not disclosed and some beneficiaries have been given more than 500,000 tonnes a year each, said the source. (StarBiz)

Palm Oil Refiners Association of Malaysia (Poram) and Malaysian Estate Owners’ Association (MEOA) – representing both upstream and downstream stakeholders – suggest that the government lowers the current 23% crude palm oil tax (CPO) to 8% instead of increasing duty free CPO export quota. Recently, the Plantation Industries and Commodities Ministry announced the export of another 2m tonnes of duty-free CPO by the end of next month – a move that many refiners see as throwing good money after bad. This is because this decision will result in the government forgoing some RM4bn in tax collection by allowing the export of up to 5.5m tonnes of duty-free CPO. As palm oil prices continue to fall in the last four months, the refiner said it is naive to assume that by pushing palm oil exports, stock levels will come down and this would prompt palm oil prices to jump. “Does the government think they can really push prices up by pushing CPO exports?” a refiner questioned. (BT)

1Malaysia Development Bhd (1MDB) is buying another power asset, its second in five months after a RM8.5bn acquisition of Tanjong Plc’s power business. Sources said the government-owned firm is paying between RM3bn and RM3.5bn for Genting Sanyen from the Genting Group. “The deal is reaching its final stage and will be announced soon. This is part of 1MDB’s business plan which has identified power as one of its core businesses as well as ensure the long-term power security of the country,” the source said. The source said once the purchase is completed, Genting Sanyen will be grouped under a new entity called 1MDB Energy together with Tanjong Energy Holdings Sdn Bhd, which it bought in March from tycoon T. Ananda Krishnan. Genting Sanyen is the power arm of conglomerate Genting Group and is one of the country’s five independent power producers (IPPs). (BT)

AirAsia X aims to triple the number of passengers by 2015 as it expands its fleet to 25 aircraft, said CEO Azran Osman-Rani. “We carried 2.5m passengers in 2011. We hope once the 14 aircraft are delivered by 2014, we will be able to carry some 7m passengers, he said. AirAsia X signed a letter of intent with International Lease Finance Corp (ILFC) for the lease of six A330-300, based on a 10-year lease in a deal worth US$500m. (Financial Daily)

Syarikat Prasarana Negara Bhd is preparing to lease out its fibre-optic lines along the Ampang LRT and Monorail tracks to telecommunication companies as another non-fare revenue. "It is a win-win situation, our company can capitalise on the city's need to expand telecommunications coverage whereas the telecommunication companies can save a huge sum as it is cheaper to rent our fibre-optic lines than to lay their own," said Prasarana Group managing director Datuk Shahril Mokhtar. Maxis, Digi, Celcom and Time are some of the companies that have taken up the offer. (Star)

VADS, a unit of Telekom Malaysia, plans to expand its managed information, communication and technology (ICT) business to Indonesia. "We are looking to grow our ICT business in Indonesia and we are still assessing on how to deliver our services there," chief executive officer Ahmad Azhar Yahya told reporters at a media briefing here yesterday. VADS believes that Indonesia holds great potential for the company. He said Indonesia is the largest ICT market in Southeast Asia, compared to Malaysia's RM5bn market size. Among the new businesses that it wants to offer are data centres, cloud computing, managed telepresence and managed services. He did not disclose how much it would invest in Indonesia, but said the company has funding options available and could seek a local partner if needed. (BT)

Pos Malaysia is currently in talks to acquire a courier company in the Middle East to diversify its business portfolio, in line with its five-year transformation plan. Group CEO, Datuk Khalid Abdol Rahman, said the company aimed to conclude the talks most probably by year-end. "We are also looking at acquisition for the logistics business as well," he said. Khalid said the company, which has allocated a capital expenditure (capex) of RM100m to RM150m for the current financial year, could increase it in case of merger and acquisition (M&A) exercise. (BT)

Some 177 homes will be on sale at Setia Eco Glades in Cyberjaya on Sunday via balloting. With a GDV of RM3bn, Setia Eco Glades spans 268 acres and is situated just next to the 400-acre Cyberjaya Lake Gardens. Setia Eco Glades Sdn Bhd CEO Koe Peng Kang said the units will be sold via a balloting process. "So far, we have about 600 registrants interested to buy the units via balloting on Sunday. They have to show us proof [an acknowledgement letter from the bank] that they have submitted the relevant documents to the bank for a housing loan to be able to register for the balloting. This way, only those serious about purchasing a unit in Setia Eco Glades will be present and we believe everybody can have a fair chance to own a unit via balloting," he said. (Financial Daily)

Ho Hup Construction Company Bhd has been awarded a contract for the design and execution of civil and electro-mechanical works for the Al-Zuhour Water Project in Baghdad, Iraq, worth RM267m. "Construction of the project is planned to commence in September 2012 and is expected to be completed in 30 months, with a further 12 months of maintenance period," it said. (StarBiz)

Eng Teknologi has been awarded RM61.6m in insurance claims following the damages to their operations following the severe floods in Ayutthaya, Thailand last year. EngTek said its subsidiary Altum Precision Co., Ltd's insurer had confirmed it would pay out RM61.6m as compensation for inventories, property, plant and equipment damages arising from the floods. To date, it has received RM12m out of the claims. It is expected to receive the balance of RM49.6m by end September. (StarBiz)

Delloyd Ventures saw 9.19m shares transacted in an off-market deal at RM3.20 each yesterday. The block shares represented 9.19% stake, based on its paid-up of 100.004m shares. (Star Biz)

O&G: EBX Group to invest MYR8.6b in Malaysia. ECONOMIC ties between Malaysia and Brazil are set to soar following the move by Brazilian conglomerate, EBX Group, to commit USD6b (MYR18.6b) for fast-tracked high-impact strategic foreign direct investments (FDI) into Malaysia. In return, Malaysia would be accorded exclusive exploration and production operating rights jointly with the EBX Group in Brazil, which currently has potential petroleum resources of more than 10 billion barrels.(Source: Malaysian Reserve)

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