Tuesday, October 9, 2012

20121009 0944 Malaysia Corporate Related News.

Mudajaya to bid for Pengerang power plant pre-Q
Mudajaya Group will submit its bid for the pre-qualification (pre-Q) call by national oil company Petroliam Nasional (Petronas) for the latter‟s power plant at its Rapid project in Pengerang, Johor. Group managing director and CEO Anto Joseph told the press that it would tie up with another "one or two" foreign partners for the contract. "The submission for the pre-Q will close by 24 or 25 Oct, with another four to five parties expected. This could open up recurring income opportunities on top of the potential civil works worth estimated RM800m to RM1bn, going by the values of the group's existing power plan civil work jobs." he said. (Financial Daily)

Semperit to buy out Latexx
Austria-based rubber and plastics products maker Semperit AG Holding wants to buy out Latexx Partners at RM2.30 per share, in a deal that will propel the former into the world's second largest glove manufacturer. The offer price is at a 28.5% premium to Latexx's last traded price of RM1.79 before trading was suspended yesterday. Semperit is also offering to acquire all warrants at RM1.77 a unit, which were last transacted at RM1.30. Semperit CEO Thomas Fahnemann said it had already secured a 47.3% stake in Latexx from substantial shareholders, and is optimistic that Semperit will get over 50% acceptances. (Financial Daily)

BIMB gets BNM nod for talks with Dubai Financial Group
BIMB Holdings has received Bank Negara Malaysia's (BNM) consent to start negotiations with Dubai Financial Group LLC (DFG) and Lembaga Tabung Haji over the proposed acquisition of DFG's stake in Bank Islam Malaysia. BIMB said on Monday it had received a letter from BNM that it "has no objection in principle" for the negotiations which "are to be completed on or before March 31, 2013". According to Bloomberg data, Lembaga Tabung Haji is the largest shareholder of BIMB with a 51.8% stake or 552.6m shares while the Employees Provident Fund owns 9.5% or 101.7m. (StarBiz)

Hua Yang plans mixed development with GDV of RM1.52bn
Hua Yang is acquiring 29.20 acres of land in Puchong, Selangor from Mentaru Hari Sdn Bhd for RM158m and plans to undertake mixed development with an expected gross development value of RM1.52bn. It said on Monday it had entered into a conditional sale and purchase agreement with Mentari Hari to acquire five vacant plots of leasehold land in the Petaling district. The lease expires in December 2110. Hua Yang said the group's strategy is to acquire and continue to expand its current land bank which is about 766 acres and are in the Klang Valley, Perak, Seremban and Johor. (StarBiz)

PNB sells 5m Bonia shares at RM2.59 per unit
Permodalan Nasional (PNB) has sold 5m shares in retailer Bonia Corp for RM2.59 per share in the open market, according to an exchange filing. PNB holds some 21% stake in Bonia, which has received an unconditional takeover offer of RM2.04 per share from major shareholders of Freeway Team SB, Chiang Sang Sew and Chiang Fong Yee. (Malaysian Reserve)

1MDB tipped to clinch Prai power plant project
Malaysia‟s Energy Commission (EC) shortlisted several companies for the tender process to build the power plant, expected to be ready for commercial operations by March 2016. Among those shortlisted are Pendekar Power SB, a unit of Powertek (which is being taken over by 1MDB), Sime Darby, Tenaga Nasional (TNB) and Mastika Lagenda SB (also being taken over by 1MDB). The others are 1Malaysia Development-Hyundai Engineering & Construction, YTL Power International-Marubeni Corp, and the MMC Corp-Mitsubishi Corp venture. 1MDB is likely to win the Prai power plant project, having submitted the lowest bid. (BT)

Maybank raises RM3.66bn via private placement
Malayan Banking (Maybank) said it raised RM3.66bn through a private placement of new shares, the country‟s largest ever, to support its growth in the region, prompting speculation that it may be keen to bid for a stake in Thailand‟s Bank of Ayudhya (BAY). BAY, the fifth largest lender there, is a good vehicle for either Maybank or rival CIMB Group to expand their exposure to Thailand, given the former‟s high net interest margin and niche in consumer loans. Bloomberg reported that CIMB and Oversea-Chinese Banking Corp were interested in GE‟s stake and had inked non-disclosure agreements (NDAs) to enable them to examine BAY‟s accounts. (BT)

Ingress lands RM51.6m Proton deal
Ingress Corp has clinched a RM51.6m contract from Perusahaan Otomobil Nasional SB (Proton) to supply heatshield mufflers for a new model through its unit, Ingress Engineering Sdn Bhd (IESB). The project is forecast to generate a total revenue of RM3.16m while the total investment is expected to cost RM250,000, it told Bursa Malaysia yesterday. The company, through its unit in Indonesia, also landed a deal for the supply of brackets for a new model by PT Asahimas Flat Glass Tbk. (BT)

Muhibbah received a notice from the International Court of Arbitration (ICC) in respect of an alleged claim by UEM Group amounting to RM26.5m. This is in relation to the  Salwa Road construction  project in Qatar. The project, in which Muhibbah was the subcontractor to UEM, was completed several years ago. Muhibbah is disputing and challenging the claim. The group is currently taking legal advise about the matter. (BMSB)

Although it had been earlier speculated that Maybank was gunning for Bank of Ayudhya, reports are now saying that CIMB Group is also considering the latter. Singapore's OCBC is also looking to take up GE's 25% equity holdings in Thailand's fifth largest lender at a price tag of some US$1.6bn. A Bloomberg report said that both CIMB and OCBC had  signed non-disclosure agreements that allowed them to examine in closer detail the accounts of Bank of Ayudhya. (Star Biz)

Maybank's fund raising private placement exercise, which hit a record RM3.66bn has been taken up largely by Permodalan Nasional Berhad and the Employees Provident Fund. Local funds had taken up about 70% of the placement shares, with the balance 30% or so going to foreign parties such as pension funds. (Star Biz)

Syabas' lawsuit claiming RM1.1bn in compensation from the  Selangor government over a water tariff dispute will go on trial at the KL High Court on Oct 30. It will be based on the initial formula of RM1.89 per cu m sought by the plaintiff. Syabas claims that based on the concession agreement dated 15 DeC 2004, signed by the Federal government, Selangor government and the company, it was given a 30-year concession to buy treated water from water treatment operators and supply the water to the distribution areas. In 2008 Syabas sent an application to the Selangor government to raise water tariff from RM1.39 per cu m to RM1.89 per cu m. Syabas claimed that the Selangor government failed to inform the company whether it has agreed to the increase. (Financial Daily)

The Securities Commission Malaysia (SC) has issued the Guidelines for Registered Persons which provides for two new classes of registered persons, namely Trading Representative and Introducing Representative.The introduction of these two new categories of registered persons will widen the opportunities for  fresh talent to join the stockbroking industry and ensure sustainable growth of the industry, the SC said in a statement released yesterday. The guidelines, it said, will strengthen the role of dealers and dealers' representatives by facilitating provision of specialised services, allowing focus on client servicing and enabling access to a wider client base.The move is set to increase the productivity of over 6,000 licensed representatives and provide new job opportunities in the Malaysian capital market for thousands of young Malaysian. CEO of CIMB Investment Bank Bhd, Datuk Charon Wardini Mokhzani, lauded the move. "This is positive for the industry. It eases the entry of new talent and grows the industry talent pool in the long run," Charon said. (BT)

Felda Global Ventures (FGV) is the first foreign investor to show interest in the southern Philippines after Manila agreed on a historic peace deal with Muslim rebels, potentially opening up tracts of farm land. Conflict-wracked Mindanao has the most suitable land in the Philippines for oil palms, FGV chief executive officer Sabri Ahmad said. "We will go there for oil palms," Sabri said. "There is ample area for oil palms to meet strong local demand," he added. While Sabri did not give an estimate for how many hectares FGV was looking to develop, he said plantation companies would need to invest in at least 10,000ha to gain economies of scale. (Reuters)

Tenaga Nasional Bhd is said to have won the  Energy Commission's 1.0-1.4GW Prai (Penang) combined cycle gas turbine power plant project. An announcement by the regulator will be made today. An executive close to Tenaga has confirmed the news. Earlier in July the Edge Financial Daily reported that Tenaga and a consortium comprising Pendekar Power Sdn Bhd and Mitsui & Co. Ltd. had put in the lowest bids for the project. (Financial Daily)

Celcom  and the  Royal Malaysian Police (PDRM) have agreed to share their telecommunications sites nationwide, as a move to save operating and capital expenditures. The sharing will help Celcom save some RM3m in operating expenditure annually, while the initial sharing of 200 sites will help save RM10m in capital expenditure. At the initial stage, the sharing will involve 200 sites, but this may be expanded to 1,600 sites in the  future. This means Celcom will be allowed to build its base stations at selected PDRM sites, while PDRM will also have access to identified Celcom sites. "This is the beginning of more collaborations to come," said Celcom CEO Datuk Seri Shazalli Ramly. Among other areas that Celcom and PDRM can collaborate include customised services such as closed-circuit television surveillance, broadband Internet, vehicle-mounted police cameras, fleet and asset tracking management, and location-based services. It also introduced special packages for the police force - a new dedicated Celcom First voice plan for all members of the PDRM. (BT)

Sunway REIT is likely to see an asset injection today from the medical or education properties owned by its sponsor Sunway Bhd. Sunway REIT Management will hold a press conference this morning with its CEO  Datuk Jeffrey Ng Tiong Lip. CFO Wai Sow Fun had in August named Sunway University, Monash University Sunway, Sunway Giza and Sunway Medical Centre as candidates to be added into Sunway REIT's portfolio of 11 properties. (Star Biz)

AirAsia remains coy about a move to KLIA2, the new LCC terminal due to be completed in seven months. AirAsia Malaysia chief executive  Aireen Omar said the decision will be based on whether the new airport is safe and functional and can facilitate the carrier's low-cost operation. However, there are other ways that AirAsia can manage itself should the new airport prove unsuitable for its low-cost model, she said. Ms Aireen said the carrier has hubs in other Asean cities but declined to elaborate on the possibility of AirAsia relocating its Malaysia operations to one of its regional hubs. (BT)

AirAsia: AirAsia X suspend flights to Teheran
Foreign airlines, including Malaysia's AirAsia X and Britain's BMI, are ceasing services to Iran amid its mounting economic problems spurred on by Western sanctions. AirAsia X announced on Monday the current four times weekly flights between Kuala Lumpur and Teheran will be suspended with the last flight on October 14. The long-haul arm of budget carrier AirAsia said the suspension of its services to Tehran Imam Khomeini Airport was due to challenging economic and business conditions including the volatility of the Iranian currency. The statement did not say when services would be resumed. (Business Times)

Sentoria Group: Eyes higher revenue from leisure, hospitality segment
Sentoria Group Bhd is eyeing higher revenue from the leisure and hospitality segment, with the commencement of the RM80.4m 868-room Arabian Bay Resort. Arabian Bay Resort, coupled with the existing 998-room Caribbean Bay Resort, brings Bukit Gambang Resort City's room inventory to 1,866, one of the largest in Kuantan. The revenue from Bukit Gambang Resort City constituted RM44.3m or about 33% of the total group revenue for the 9 months ended June 30. This segment contributed RM48.4m or 30% of the group revenue in FY11. (Bernama)

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