Tuesday, October 16, 2012

20121016 1007 Malaysia Corporate Related News.

Although current news of  Maybank‟s merger and acquisition (M&A)  aspirations, post its mega fund-raising exercise, seem to be focused on Thailand,  some industry experts do not rule out that the banking giant may be casting its  eye on targets closer to home. And one name that keeps cropping up as a  potential merger target is  RHB Capital. Said one banker: “Don't rule out a  potential merger with RHB Bank. After all, the major shareholders in both the  banks need to lower their stakes. And creating a giant banking group will bode  well for both parties.” (StarBiz)

Tenaga Nasional Bhd (TNB) has signed a joint development agreement (JDA)  with PT PLN, the Indonesia state-owned utility company and PT Bukit Asam  (PTBA), a coal producer, on the development of a coal-fired power plant project,  a coal mine project and a high-voltage, direct current (HVDC) interconnection  project.  TNB will be taking the material role in the procurement relating to the  HVDC interconnecting project. PLN will lead in the development of the  coal fired power plant and PTBA will develop the coal mine project. The  JDA will not have any effect on TNB's issued and paid-up share capital  and it will not have any material effect on TNB's earnings, net assets or  shareholding structure. (BT, BMSB)

Gas Malaysia Bhd has signed a MoU with IEV Energy Sdn Bhd to conduct  a feasibility study to review the prospects of cooperating and successfully  undertaking projects to transport and market liquefied natural gas to industrial  consumers who are not connected to Gas Malaysia‟s natural gas pipeline system.  IEV, which is part of  IEV Holdings Ltd listed on the SGX, has  developed and operated mobile infrastructure to transport and  distribute natural gas in Southeast Asia since 2007. The feasibility study  is scheduled to be completed within ninety days from the date of MOU.  (BMSB)

Putrajaya has to spend an extra RM3.6bn for land acquisition, compensation  and other costs for the RM12.5bn  Ipoh-Padang Besar double-tracking  project, which has faced two time extensions, according to the Auditor  General's Report 2011. The extra costs were due to land acquisition  (RM698.2m), squatter compensation (RM37.6m), consultancy charges  (RM256.9m), TNB re-connection charges (RM203.5m), other and legal fees  (RM1.4m), deferred payment scheme processing fees (RM10.1m) and Bank  Pembangunan Malaysia Berhad (BPMB) interest charges (RM2.4bn). The  Auditor-General‟s Report also revealed that the Finance Ministry wanted the  processing and legal fees to be paid by the contractor MMC-Gamuda JV but  the Transport Ministry went ahead and included the costs under the “associated  cost and expenses” category in the additional agreement as it cropped up after  the contract negotiations were done. (Malaysian Insider)

The export of Malaysian palm oil is expected to register a shortfall this year  from the record RM80.4bn in 2011. Minister of Plantation Industries and  Commodities Tan Sri Bernard Dompok said while there would be a shortfall,  it also depends on how the market reacts for the next two months of this year.  For the first nine-months of this year, Malaysian palm oil exports stood at  RM54bn. (StarBiz)

Malaysia can store 5.2m tonnes of palm oil, according to Plantation Industries  and Commodities Minister Tan Sri Bernard Dompok, puncturing  speculation that capacity may be fully used after holdings advanced to a  record.  That figure is more than twice the reserves held last month. Palm oil has  tumbled 23% this year as slowdown in Europe and China has curbed growth in  overseas demand for the edible oil.  "Although prices have not been upbeat  over the last few weeks, demand remains strong," Dompok added. (BT)

Maybank  plans to become a leading "cross-border" solutions bank in the  context of Asean-China by 2015, said its President and Chief Executive Officer,  Datuk Seri Abdul Wahid Omar. "Maybank was looking to expand to other  big cities in China in an organic manner without involving any merger and  acquisition," he said at a press conference in conjunction with the opening of its  Beijing branch, the third branch after Shanghai and Hong Kong. Apart from targeting Malaysian and Asean clients with investments and  business in China, Maybank was looking at supporting profitable  Chinese state-owned enterprises that have approval to borrow in foreign  currencies, he said. (Bernama)

Gamuda's substantial shareholders have been  trimming their stakes in the  construction outfit. The EPF pared down its stake in Gamuda to 5.37% as at Oct  11 from 5.76% earlier this month. Director  Raja Datuk Seri Eleena Azlan  Shah had sold a total of 1.9m shares on the open market between RM3.52 and  RM3.57 each. Executive director  Datuk Ng Kee Leen also disposed off 6m  shares or a 0.3% stake in a direct off-market trade last week. (Financial Daily)

Scomi Group Bhd said that its board has decided not to proceed with its  proposed offer for the sale of up to 283.2m shares in Scomi Marine Bhd. In  July, Scomi Group planned a renounceable offer for sale of up to 283.2m shares  in Scomi Marine at RM0.45/share held by Scomi Group to its shareholders, on  the 1:5 basis.  The offer for sale is part of the company's plan to dispose of its 76.1% in  Scomi Oilfield Ltd for RM776.0m, its entire stake in Scomi Sosma Sdn  Bhd for RM6.7m and 48% stake in Scomi KMC Sdn Bhd for RM0.8m.  (BT).

Parts of the plaster ceiling of the ground floor of the  Penang International  Airport came crashing down, injuring an employee. Several portions of the  plaster ceiling near the Malaysia Airlines ticketing office and the KL Airport  Services (KLAS) office gave way as gallons of water poured down from the  ceiling.  “The staff was not seriously injured, she‟s just been sent to the hospital  for check-up and observation,” said MAHB senior manager Mohd Arif  Jaafar. He said the unusually heavy downpour caused the gutters to  overflow and the water flowed to the ceiling. (Malaysian Insider)

It was good value, according to  Tan Sri Tony Fernandes and his partner  Datuk Kamarudin Meranun, that prompted them to raise their stake in  AirAsia when the share price fell in reaction to the establishment of Malindo  Airways. Fernandes and Kamarudin added 0.86% stake to bring their total  stake (indirect) in the company to 24.12%. (Star Biz)

Firefly is eyeing the possibility of expanding its services between Singapore and  Sabah and Sarawak and reinstating the flights between the city-state and  Terengganu. CEO  Ignatius Ong said Firefly would seek new and exciting  destinations, most importantly, profitable routes. (Bernama)

Dialog Group has incorporated Dialog IPS Marine (Labuan) Ltd, which will be  involved in the provision of logistic services for the marketing of specialist  products in the oil, gas and petrochemical industry. (BMSB)

DRB-Hicom is tipped to win this week a contract worth between  RM800m-900m to lay railway tracks for the  Sungai Buloh-Kajang MY  Rapid Transit (SBK MRT) project, people familiar with the matter said. The  contract is part of several jobs worth more than RM1.2bn that Mass Rapid  Transit Corp Sdn Bhd (MRT Corp) will be awarding soon.  The contract for track laying works had three shortlisted bidders  including Balfour Beatty Rail Sdn Bhd and Leighton-Lion Pacific.  DRB-Hicom had bid for the job with Mitsubishi Heavy Industries Ltd.  (BT)

MK Land Holdings Bhd is planning to launch exclusive hilltop developments  and commercial projects in prime locations to meet demand, says Group CEO  Lau Shu Chuan. Tthe hilltop developments will feature luxury bungalows and  town villas.MK Land currently has nine projects in Selangor, Perak and Kedah.  Its flagship project is Bandar Damansara Perdana, a 303.5ha township  development in Petaling Jaya, comprising landed commercial and  residential properties. The Damansara Perdana project is expected to  take another 10 years to be completed and is destined to be a premier  centre for business and living in Petaling Jaya. (BT)

The insurance arm of Tune group, Tune Insurance Malaysia, is expected to  offer up to 210.2m shares for its proposed initial public offering (IPO). The  shares to be offered comprise 143.4m new shares and 66.9m existing shares. Its  biggest shareholder Tune Money plans to offer the 66.9m or 8.9%  of Tune  Insurance shares under the listing exercise which will see its 80% direct stake  reduced to 55.85%. AirAsia‟s 20% direct stake in the no-frills insurance  company will shrink to 16.19% due to the issuance of new shares. (StarBiz)

Tradewinds Corp Bhd said it has exercised the option to enter into  agreements with Northern Gateway Free Zone Sdn Bhd and Benua Perdana Sdn  Bhd for the exchange of the Malay reservation status of several pieces of land for  a total consideration of over RM28.7m. These lands, measuring more than  40.5ha, are calculated at RM5psf. (BT)

Governments' interest compromised
The terms of the contracts for the two of Malaysia's largest railway projects were not in the government's favour and a minister in the Prime Minister's Department was told in June 2006 that such project should be awarded on a competitive basis. According to the Auditor General's (AG) Report for 2011, the contract terms were such that the interest of the government was compromised should there be a dispute in the double tracking projects for the Ipoh-Padang Besar and Seremban-Gemas stretches. (Financial Daily)

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