The government will let water stakeholders decide whether to accept the revised offer made by
Splash, to buy
water assets in Selangor for RM10.8bn. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said discussions led by the ministry's secretary-general and the Selangor state secretary with water operators are underway to discuss the deal. "If operators are happy to accept, I don't see why an offer like Splash won't go through. Maybe we will see a decision by the first half of the year," he said. (BT)
This is good new for Splash and the progress of the water consolidation in Selangor. This development suggests that Splash's take over proposal has the support from the Federal Government. Next step would be the response from the three concessionaires ie Konsortium Abass, Syabas and PNSB.
Top Glove announced a 1-for-1 bonus issue yesterday. Based on the company’s issued and paid-up share capital of 307.8m shares and assuming full exercise of all outstanding ESOS, a maximum of 348m new shares will be issued pursuant to the bonus issue exercise. This would enlarged the company's issued and paid-up capital to 696m shares. The proposal is due for completion by July this year after the company's EGM. (BMSB)
The news on the bonus issue is not a surprise as the company did indicate earlier its intention to reward its shareholders this way. We take a positive view of this as it will boost liquidity and make the stock more affordable in terms of absolute cost.
Ghazz Networks, the first Syariah based
mobile phone, expects to launch its service in the East Coast latest by July this year said its MD Ghazali Mohd Saat said. The service will be operated by a company jointly established by Kuwait based Baraka Telecom Sdn Bhd and Ghazz Networks which has its office in Kota Baharu. "A total of 550 agents in Kelantan and Terengganu have been identified to expand the service network." He said 24 agents have already been given training and briefings on the special service which is touted to offer the lowest rates compared with other mobile phone operators. (Bernama)
Ghazz Networks will be the latest mobile virtual network operator (MVNO) to enter the market, bringing the total MVNOs to five. It is the first MVNO to be hosted by DiGi, which is trying penetrate the Malay/Muslim market.
The
second Penang bridge project will cost less than the RM4.5bn initially estimated and is on track to be completed by Sep 2013, says Jambatan Kedua Sdn Bhd (JKSB) MD Datuk Professor Ismail Mohd Taib. "We are expecting it to be less than RM4.5bn with the competitive open tender for Package 3," says Ismail. So far, over 100 construction firms have shown keen interest in the RM750m Package 3 contract work. "About 40 of those companies have submitted their tender for Package 3. We hope the board can sit this month and if there are no problems, we can start work for Package 3 construction by the end-May," he said.
- Package 1 of the second Penang bridge project involves a RM2.2bn contract work on the main span, substructures and foundation, which is expected to be completed in May 2012. Package 2 is a RM1.55bn contract for the construction of the superstructure, scheduled for completion in 2013. Construction of the Second Penang Bridge is now 24% complete and it should be open to traffic by Nov 2013. (BT)
Bank Negara Malaysia, which is currently assessing the applications for the licences of
Islamic, takaful and commercial banks, will make known the institutions that get the licences by June this year or earlier. Deputy governor Datuk Mohd Razif Abdul Kadir said the central bank has received many applications from institutions across Europe, Asia and the Middle East. "By June, God willing, everybody will know... it could be earlier," he added. (BT)
Allianz Malaysia has proposed a rights issue to raise some RM611m to repay its credit facility, for working capital and to increase the capital base of its subsidiaries. It will issue renounceable rights issue of new irredeemable convertible preference shares of RM1 each in Allianz to entitled shareholders. Of the RM611m gross proceeds, RM490m will be used to repay the credit facility. (BT)
The government has received many complaints on Bank Negara Malaysia's proposal to restructure the
country's third-party motor insurance policy, says Deputy International Trade and Industry Minister Datuk Mukhriz Tun Mahathir. "We are having some talks with relevant parties such as Bank Negara to see how best we can resolve this," he said. The government, when tabling the 2010 Budget, had announced the need to provide a basic motor insurance coverage for Third-Party Bodily Injury and Death (TPBID) at a reasonable premium that commensurate with the level of protection provided. It was reported recently that plans are in the offing to limit third-party motor insurance claims to RM100,000, inclusive of hospitalisation, rehabilitation, pain, suffering, loss of income and future earnings.
- The central bank is considering restructuring third-party motor insurance as the amount of claims exceeded the premiums collected by insurance companies under the third-party motor insurance policies. (Bernama)
Toh Swee Hoe, senior director research and planning at the Malaysian Communications and Multimedia Commission (MCMC), expects the government to sell two 70MHz blocks and one 50MHz block at 2.6GHz for Long Term Evolution (LTE).
- “There will be a public consultation later this year with industry on the marketing plan for the 2.6GHz,” Toh said.
- But with only three proposed LTE licenses, one of Malaysia’s four cellcos – Maxis, Celcom, Digi and U Mobile – will miss out on the valuable broadband spectrum.
- In the meantime, the MCMC is conducting closed consultations with all four operators about refarming 2G spectrum at 850MHz, 900MHz and 1800MHz for 3G. “Bids for the new tenure will limited to only [existing] 2G-3G operators,” said Toh on the refarming exercise. (Telecomasia)
Marina Bay Sands, Singapore's second IR, will open its doors to the public today. At exactly 3.18pm, it would open the first phase of the resort with 963 out of 2,560 hotel rooms, a portion of its shopping mall, some restaurants, the Sands Expo and Convention Centre, the event plaza and the casino. (Bernama)
Malaysia Land Properties is launching new residential projects worth up to RM2.2bn this year in the Klang Valley and Johor. Mayland head of leasing Eddy Tan said there is pent up demand for serviced apartments and condominiums in Sri Hartamas, Ampang, Kepong and Jalan Kuching, Kuala Lumpur. He said Mayland will launch high-end serviced residences worth RM650m in Ampang. The project will be developed in a 50:50 joint venture with
Land & General. "We have yet to identify a name for the project or the launch date. But it will be soon," Tan said. (BT)
Weida (M), which made its foray into the Middle East three years ago, has successfully delivered its first sewage treatment plant in Zabadani, to the Syrian government. The plant was completed within 18 months and is part of a RM319m contract awarded by the Syrian government to Weida in 2007. The contract was awarded through a government-togovernment initiative. The contract involved the formulation of a sewerage master plan for a population of about 4m, and the building of five sewage treatment plants and 15 water treatment plants to serve a population of about 1m, from conceptualisation through to design, construction and commissioning on a turnkey basis.
- Currently, the group is negotiating for more projects in Syria, which includes a 30,000 cu m per day water reclamation plant, a 50,000 cu m per day centralised industrial wastewater treatment plant and more sewage treatment plants. (BT)
Berjaya Air will make a last return flight to Pangkor on Sunday, ending a decade of its air services to the island. "Owing to commercial reasons, we wish to announce that with effect from May 3 2010 Berjaya Air services into/out of Pangkor Island will be suspended until further notice," Berjaya Air website said.
- Malaysia Airports Holdings (MAHB) group MD Tan Sri Bashir Ahmad said, "MAHB will discuss with the Ministry of Transport on the future of Pangkor Airport. It would be our intention to keep the airport open for flights." On plans of a possible extension of the runway, Bashir said that there are no such plans currently and that it would be up to the government to do so.
- Meanwhile, YTL-owned Pangkor Laut Resort and IGB Corp-owned four-star Pangkor Island Beach Resort expects little impact from the move. (BT)
Malaysia Airlines has cleared a backlog of more than 3,200 stranded passengers with 12 additional flights. The last extra flight to London departed yesterday at 2.10pm. Managing director Tengku Datuk Azmil Zahruddin said: “From the 12 extra flights, four were mounted to London, four to Amsterdam, two to Paris, one to Frankfurt and one to Rome." Tengku Azmil said besides the extra flights, MAS has also resumed normal flights to European countries since reopening of the airspace, which totalled 31 flights to date. During the closure of the European airspace from April 15 to 20, MAS had cancelled 24 flights out of Kuala Lumpur, affecting some 7,000 passengers. (NST)
Palm oil exports from Malaysia dropped 15% in the first 25 days of April compared with the month-ago period, independent market surveyor Intertek said. A total of 947,304 metric tons of shipments were tracked from April 1 to 25, down from 1,114,035 tons in the same period in March, Intertek said. (Bloomberg)
Takaful Ikhlas is eyeing a premium of RM25m in its third year of operation in Sarawak from about RM18m last year, president and CEO Datuk Syed Moheeb Syed Kamarulzaman said. Takaful Ikhlas, a subsidiary of MNRB Holdings, will aggressively promote a refreshed takaful (Islamic insurance) product called Ikhlas Hajj Saving to help it achieve the targeted premium, Syed Moheeb said. Takaful Ikhlas also plans to expand its sales agents in the state from 100 currently. Overall, it has about 7,000 agents nationwide. (BT)
US fund manager
Franklin Templeton plans to offer Islamic equity funds in Malaysia and is setting up a bond investment team in Singapore, a senior executive said. Templeton has already hired a country head, two analysts and a compliance person in Malaysia and is in the process of recruiting a fund manager to handle sukuks, or Islamic debt, executive vicepresident Vijay Advani said. Advani said Templeton will initially develop Islamic-compliant equity funds for Malaysia by customising existing funds. It will then consider offering Islamic debt by tapping the expertise of its Middle East affiliate, Algebra. (BT)
Setia Haruman, the master developer of Cyberjaya, has clarified the tax issue involving the company is just a matter of late filing with the Inland Revenue Board (IRB) and says it has been given ample time to make the submission. Chief operating officer Lao Chok Keang said a news report that the company was raided by IRB recently had put Setia Haruman in a negative light but the visit by IRB officials was just a normal procedure by IRB. “I believe late filing is a normal occurrence that also affects other companies, not just us,” he added. (Starbiz)
The
Bangladesh Mobile Phone Importers Association (BMPIA) has sent a deputation to the country's Prime Minister to argue for lower tax on imported phones, arguing that lowering the taxes would cut smuggling and lead to a net rise in revenues for the government. "Around 0.2m mobile phones sets are illegally entering the country every month," Faisal Alim, the secretary general of the association said. Currently, there is a 12% duty on each imported handset, while the trade association is asking for a lower fixed fee to be applied, regardless of the value of the phone. Annual rise in sales of mobile phones slumped from 21% per year to under 5% when the 12% import duty was imposed. It currently costs Tk100-150 (RM4.50-6.90) to smuggle a phone into the country so the association is seeking the lower fixed duty to be set at the lower Tk100 level. (Cellular News)
The bids for a pan-Indian
3G spectrum rose to Rs83.82bn (US$1.9bn), up 139.5% from the base price after 14 days of bidding. Eighty-two rounds of bidding had been completed so far. Mumbai has now overtaken Delhi to generate the highest bids for 3G as it now commands Rs12.5bn (US$0.3bn) per slot in Mumbai while Delhi fetches about Rs12.1bn (US$0.3m). Other high-end regions such as Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu continued to witness maximum demand during Mon's bidding. Even as metros and A-circles witnessed strong bidding, pushing the overall prices upwards, the demand remained weak in large parts of the country. (Economic Times of India)
Dijaya Corp’s wholly-owned subsidiary Terbit Berkat has acquired 11m ordinary shares of RM1 each and about 2.12m irredeemable convertible unsecured loan stocks 2005/2010 of nominal value of 50 sen each in Berjaya Corp for RM21.35m. The acquisitions will provide an opportunity for Dijaya to participate directly in BCorp’s equity and the continued growth of the
BCorp Group. (Bernama)
Deleum plans to buy Rotary Technical Services Sdn Bhd, a rotating equipment service provider, for RM10.7m. Deleum, via unit Delcom Services Sdn Bhd, signed a conditional share sale agreement with Rotary Technical Services yesterday. “The proposed acquisition will provide a good opportunity for the group to expand its current service capability in the oil and gas market,” Deleum said. (BT)
Tanjung Offshore subsidiary Tanjung PetroConsult has received a RM7.3m letter of change order from Petronas Carigali to supply marine spread for the former's operations in Sarawak. (Financial Daily)
MBf Holdings group CEO Tan Sri Dr Ninian Mogan Lourdenadin will need to convince at least three quarters of the group’s so-called non-interested shareholders to accept his buyout proposal at today’s EGM. But it won’t be a walk in the park for the medical doctor who has helmed MBfH since 2002. As it is, a group of minority shareholders is determined to hold out for a better offer. “The smaller shareholders deserve a fairer deal,” a spokesman who is representing a group of minority shareholders in MBfH said. “The company is worth substantially higher than what he is offering,’’ he added. (Starbiz)
Dreamgate Corp is proposing to change its name to
RGB International to significantly strengthen the group’s corporate branding and identity. The brand name “RGB” has been in existence for the last 25 years and is well established in the Asian gaming industry. The proposed name is subject to shareholders’ approval and will be effective following the issuance of the necessary certificate by the Companies Commission of Malaysia. (BMSB)
Ken Holdings is planning to venture into the hotel business, beginning with its prime three-acre (1.2ha) plot of land in Batu Ferringhi, Penang, to build a recurring income base. Ken Holdings' chairman and MD Kenny Tan Boon Kang said the company had scrapped its initial plan to build 14 high-end bungalows at the site. According to Tan, the Batu Ferringhi project is likely to take off next year to allow time for teh company to generate cash from existing property developments to initiate the project. (Financial Daily)
Pernec is creating a new revenue stream from its payphones business with its newly launched innovative eRas. Its MD Abdul Karim Abdul Sallam said eRas, an extended radio access system service, was a rebranded WiWi (hybrid WiFi and WiMAX) technology platform. He said eRas, which was acquired from Mimos was launched last month and was now ready for nationwide commercialisation. "It is the world's first WiFi and WiMAX solutions, which operates on 2.3 GHz frequency designed as an alternative for last-mile broadband connectivity to accelerate Malaysia's broadband ecosystem," he said. (Starbiz)
