20100316 0954 Malaysia Corporate News.

Singapore Technologie Telemedia (STT) will invest over RM1bn via the acquisition of a 33% stake in U Mobile from Tan Sri Vincent Tan's U Television and subscribe to new shares via a rights issue in the telco. 50% of the RM1bn goes to U TV while the other half goes to U Mobile's coffers. Apart from U TV, U Mobile's other only other shareholder is Multi-Purpose Holdings with a 3.9% stake. Unlike its former strategic parthers - KT Freetel and NTT Docomo - STT had not been granted a put option to seel back its stake to Tan. Tan had to fork out US$200m (RM662m) to buy out KTF and NTT's respective 16.5% stake last year. U Mobile is planning to accelrate the 3G network rollout in the next 3 years. (FinancialDaily)
The RM500m for the 33% stake is cheaper than the RM662m which was initially acquired by KTF and NTT and eventually put back to Tan Sri Vincent Tan.

According to The Straits Times Singapore (STS), Ananda Krishnan is set to privatise Astro All Asia Networks in an RM8.1bn buyout. Under the proposed deal, the Ananda controlled private investment unit Usaha Tegas and its partners will pay RM4.20 for each Astro share they do not already own. The buyout price represents a slight premium to the RM4.06 valuation when the company was listed in October 2003. Astro has 1.9bn shares on issue. Usaha Tegas controls 43%, while Khazanah Holdings holds 22%. (STS)

Sources said a general offer may be in the offing by Astro All Asia Network's owners. But other options still being considered include separating its domestic and international business, or selling a sizeable stake in the company. Speculation is rife that the pay television operator, which asked for the trading of its shares to be suspended till Wednesday evening, may be taken private. (BT)

A windfall tax on Malaysian palm oil earnings that kicked in from November last year has capped gains as buyers see it as a signal to slow purchases, a top industry official said. Malaysian Palm Oil Association (MPOA) CEO Mamat Salleh said the 15% windfall tax on a tonne of crude palm oil KPOc3 was triggered on companies in the world's No 2 producer when prices rose above RM2,500.

• This automatically provides a psychological barrier which prevents prices from going higher. Why should we as producers cap our crude palm oil price increases?, he said. Mr Mamat forecast a 30% leap to RM65bn in palm oil export earnings for Malaysia in 2010 compared to last year as the demand and supply outlook should support prices between RM2,500-3,000. (Reuters)

Malaysia produced 108,892 tonnes of natural rubber (NR) in January this year, an increase of 12.3% or 11,890 tonnes qoq. Production rose 48.4% or 35,524 tonnes yoy, the Statistics Department said in its latest rubber statistics summary released yesterday. It said the estate sector contributed only 5.2% to total production, while the share from the smallholding sector amounted to 94.8%.

• As for exports, 69,549 tonnes of NR was shipped in January, which was down by 1.2% qoq but 40.6% higher yoy. NR imports in January meanwhile amounted to 73,126 tonnes, a decrease by 10.8% qoq, but a sharp rise by 68.4% yoy. 
• Latex concentrate was the main type of rubber imported in the month, accounting for 45.0% of total imports.
• Domestic consumption of NR during the period was 40,951 tonnes, a decline of 0.2% qoq, but up by 19% yoy. Rubber gloves was the major NR consuming industry at 67.0%, followed by tyre and tubes at 10.8%, while rubber thread took up 9.9%. These three industries together consumed 87.47% of NR in January this year.
• The average monthly price of latex concentrate in January was 657.25 sen, an increase of 12% qoq and 70.6% yoy.
• The price of SMR 20 also showed a similar pattern, increasing by 7.4% qoq to 994.38 sen , while yoy it showed a substantial increase of 98.5%. It was the highest price level since August 2008. (Bernama)

Maybank has appointed Amirul Feisal Wan Zahir as the acting chief executive officer (CEO) of its investment banking unit. The current CEO, Mohammed Rashdan Mohd Yusof, is leaving the group to take up a position at a national institution by Jun, it said. Amirul is currently the MD of the investment banking division.

• Maybank also confirmed earlier reports that chief credit officer Jamaluddin Nasir and head of corporate banking Tracy Ong were also leaving. Ong is retiring as of July 1 after 25 years of service while Jamaluddin's contract term expires in June.Maybank appointed Abdul Rahman Md Khalid as the acting chief credit officer. (BT)

Maybank Singapore launched a worldwide remittance service in collaboration with Western Union, allowing its customers to remit their money to more than 410,000 locations in over 200 countries. Maybank said in a statement that its customers could now remit their money worldwide through its 12 participating branches located throughout the island republic. The money transfer service is also available to the bank’s non-account holders as it is utilising a cash-to-cash platform. Maybank said it was aiming to grow its consumer remittance volume in tandem with market forces, possibly doubling the volume over the next two years. (Bernama / StarBiz)

EON Capital shareholders gave their nod to seven new directors after the EGM yesterday, a move that may pave the way for the revival of Hong Leong Bank Bhd's takeover offer. However, the appointments are only official after Bank Negara Malaysia's approval.

• EONCap key shareholder Rin Kei Mei wanted to change the composition of EONCap's board, which shot down a RM4.9bn buyout offer from bigger rival Hong Leong Bank early this year without presenting it to shareholders.69.2% voted for the appointment of all directors. EONCap already has seven directors. The new addition will make the board 14-member strong. (BT)

CIMB Islamic Bank has won the "Best Islamic Bank in Asia" award from Euromoney Islamic Finance Awards 2010. The bank was also awarded with the "Best Sukuk Deal" honour for its RM20bn Islamic Commercial Paper/Medium Term Note (CP/MTN) programme for Pengurusan Aset Air. The sukuk deal was the largest sukuk issuance in Malaysia last year. (Bernama)

Bank Rakyat and Lembaga Tabung Haji (TH) strengthened their partnership with the launch of TH's Uniteller, an over-the-counter service for Tabung Haji financing transactions and haj registration. Previously, TH depositors could only deposit cash, withdraw or transfer cash to the pilgrims fund board through Bank Rakyat's automated teller machines and cash deposit machines. The Uniteller service is now available at Bank Rakyat's 124 branches nationwide. (Bernama)

Tenaga is expected to resume construction works on the Central Area Reinforcement (CAR) project in Kampung Sg Terentang, Rawang on Wednesday to upgrade power transmission to the Klang Valley. The project was delayed for about three years, pending the outcome of a court decision, after residents in Kampung Sg Terentang had opposed the construction of transmission towers near their neighbourhood. The CAR project would increase the output of electricity from 33kV to 275kV and help overcome power shortage in the Klang Valley. (Bernama)

Tenaga’s subsidiary, TNB Remaco, has signed an RM117m 3-year parts management contract with Mitsubishi Heavy Industries Ltd. Mitsubishi will supply new spare parts to the Tuanku Ja'afar Power Plant in Port Dickson. The contract also included the refurbishment of used turbine components and supply of technical advisers by Mitsubishi for gas turbine maintenance. (Bernama)

Central Malaysian Properties S/B (CMP), a private property developer controlled by Berjaya Group's Tan Sri Vincent Tan Chee Yioun, expects its Lido Boulevard waterfront project in Johor Baru to boast of more than RM4bn GDV over five years.

• CMP will build, among other things, high-end condominiums, hotels, office suites, shopping malls, an indoor snow park, and an art and cultural centre on the 50ha site along the Tebrau Straits, says MD Datuk Chan Tien Ghee. 
• Reclamation works starts next month. The integrated project will stretch from the abandoned Lot 1 shopping mall to the office of the Harbour Master. CMP has hired a private dredging company from the Netherlands, Jan De Nul Group (JND), for the RM239m reclamation job.
• It will be one of the largest reclamation projects in the country, Chan said The reclamation will be the first phase of the Lido Boulevard development. Upon completion at the end of next year, 38ha would have been reclaimed. Another 11ha would be on a piled concrete deck. (BT)

Celcom Axiata expects revenue from its prepaid reload business to grow 5% with the launch of reload services at payphones. Its chief corporate officer Adlan Tajudin said currently, Celcom does about 300m top-ups a month. It has partnered Pernec Corp, which operates a payphone business for the new reload service. (BT)

Malaysia Airlines (MAS) has signed a five-year deal with India's Tata Consultancy Services Ltd (TCS) for the latter to provide it with end-to-end information technology (IT) infrastructure services. The national carrier said TCS will undertake IT infrastructure management of MAS' data centres, IT networks and IT security. TCS will also set up an IT infrastructure library v3-compliant service management organisation under a unique "build, operate and transfer" methodology for MAS. (BT)

MBM Resources is selling its entire 73.33% stake in automotive parts maker WSA Capital Corp to Datuk Dr Wan Mohamed Wan Embong for RM11.1m cash. The company said it had invested RM8.5m in WSA Capital since 2004. The group will gain RM254,000 from the sale, less any share of profits of WCC for FY10. (BT)

MBM Resources (MBMR)'s 86%-owned subsidiary Federal Auto Holdings (FAHB) is buying an automotive showroom and service centre in Sri Hartamas, Kuala Lumpur from Kiara Seleksi (KSSB) for RM20m.The estimated space area of showroom and service centre to be purchased by FAHB is 1,301 sqm and the deal is seen as a related-party transaction as MBMR, FAHB and KSSB have common directors and shareholders. (Malaysian Reserve)

EPF is a possible candidate to take-over or to buy a stake in Pharmaniaga from the UEM Group. Sources say the pension fund has held talks on the stake possibilty as UEM seeks to meet the March 29 deadline on the public shareholding spread set by the Securities Commission (SC).
"Pharmaniaga has a government concession that offers very good distribution margins, the general feeling is that selling the stake to an institution like the EPF would be a lot more palatable than selling it to an individual or company which could irk a lot of parties," said the industry source. (Malaysian Reserve)

Pharmaniaga said it has obtained its manufacturing licence for 2010 after earlier having it revoked by the Health Ministry. It was issued the licence yesterday after a satisfactory follow-up audit by the pharmaceutical services division of the ministry on March 10. (BT)

Scomi Group’s unit, Scomi Engineering, together with its local partner has been shortlisted as one of two consortiums to undertake a US$1.7bn monorail project in Sao Paulo, Brazil. Scomi formed a consortium with CR Almeida SA Engenharia De Obras in July last year to jointly submit proposals for the Sao Paulo project and other monorail jobs in the South American country.

• "The final outcome should be known this month or in April," Scomi International Pte Ltd president Kanesan Vellupillai said. A consortium that includes Bombardier Inc, the world's largest maker of commuter trains and electric locomotives, is the other group shortlisted. (BT)

GE has commissioned the first Frame 6FA gas turbine supplied to the Ranhill Powertron II plant, which will be the largest and most efficient independent power plant in the state of Sabah, East Malaysia. "Malaysia peak demand growth is projected to average about 3% per year until the year 2020, and the demand is particularly strong in Sabah, a rapidly developing rural area where the economy is experiencing dynamic growth. The new plant will help Sabah meet its short-term energy needs while also playing a key role in the overall enhancement of the region's energy infrastructure," said Ranhill Power CEO Norlian Abd Rahim. (Malaysian Reserve)

Tanjung Offshore has won a RM114.6m long-term contract from Petronas Carigali Sdn Bhd for the charter of two vessels. The charter, which commences from March and April this year, is for up to four and five years. The vessels, designed to perform anchor handling and mobilisation of drilling rigs, will be used to support Petronas Carigali’s offshore operations in Malaysian waters. (BT)