Thursday, June 24, 2010

20100624 1004 Malaysia Corporate News.

Malaysia listed as China’s QDII destination
The ample investment fund in China can now flow into Malaysian capital markets as the country has been approved as an investment destination under the republic’s Qualified Domestic Institutional Investor (QDII). Malaysia is the 11th member of a small group of approved investment destinations which comprises Australia, Canada, Hong Kong, Germany, Japan, Luxembourg, Singapore, South Korea, the UK and the US. Chinese investors are typically not allowed to invest outside the country due to strict capital controls. The QDII scheme exempts certain funds, approved by Chinese regulators, to do so via portfolio investments. The amount than can be invested offshore is governed by a quota system. (Financial Daily)

PNB plans detailed study on Kg Baru
Permodalan Nasional (PNB) will carry out a detailed study on the proposed mixed development in Kampung Baru, Kuala Lumpur, to gauge if it will get competitive returns from the project. "The study will take time (but) we need to be careful before we decide on this project. The outcome will depend on the study," said president and group chief executive Tan Sri Hamad Kama Piah Che Othman yesterday. An earlier report had indicated that the Government had agreed to appoint PNB as the master developer for Kampung Baru, while government-linked companies Lembaga Tabung Haji and Permodalan Hartanah, had also been asked to come onboard. (BT)

P1, SK Telecom in alliance talks
Green Packet said its subsidiary, Packet One Networks (M) SB (P1), is in advanced negotiations with SK Telecom for a strategic alliance, which may include an acquisition of an equity stake in P1. “The company will make the announcement once a definitive agreement is entered into between P1 and SK Telecom,” Green Packet told Bursa yesterday. The company was responding to a news article in a Chinese daily that SK Telecom is expected to sign an agreement in June to acquire a 25.8% equity in P1. (BT)

Fajr Capital to invest in Bank Islam Brunei
Fajr Capital Ltd, the Islamic investment firm in which Khazanah Nasional has a 25% stake is buying into Bank Islam Brunei Darussalam (BIBD) in one of its first significant investments since its inception last year. It is understood that Fajr Capital is now awaiting key approvals, including from Brunei Sultan’s office, to conclude the deal estimated to be worth USD200m (RM 674.3m).The move marks the beginning of Fajr Capital’s investment plans after raising funds, including the USD150m for a 25% stake Khazanah announced in October 2009, after having raised USD588m in its first round of funding from its shareholders. (Malaysian Reserve)

Konsortium Logistik keen on Pos Malaysia
Konsortium Logistik, which is on an expansion mode this year, has expressed its interest to bid for Khazanah Nasional’s 32.2% stake in Pos Malaysia. Executive director Che Azizuddin Che Ismail said Pos Malaysia could provide speed due to its widespread logistics network with more than 692 post offices, over 355 mini post offices and more than 223 independent postal agents nationwide. “We are interested to acquire the stake. Whatever can bring profit to the company we will get involved and we will add value because at the end of the day that is what shareholders look at,” he said after the company AGM yesterday. (StarBiz)

Linear slips into PN17 status
Troubled Linear Corp Bhd, a manufacturer of cooling systems which is under investigation by stock exchange regulators, has entered into Practice Note 17 (PN17). The company came into prominence recently after revealing that its RM1.67bil King Dome project awarded by Seychelles-based Global Investment Group Inc late last year had not seen any significant progress towards execution of the contract while adding that there was no documentary evidence to demonstrate the overall viability of the project. The company told Bursa Malaysia that it was now an “affected listed issuer” pursuant to the PN17 of the Main Market listing requirements and was unable to provide a solvency declaration to Bursa Securities. (StarBiz)

KNM: order backlog may swell to RM3b.
According to MD Lee Swee Eng, KNM Group Bhd has hinted that its order backlog will swell to more than RM3b this year from RM2.1b currently. He has also said that he would not rule out the possibility of another privatization exercise in the future. (Source: Business Times)

Maybank: To convert PT Bank Maybank to syariah banking.
Malayan Banking Bhd (Maybank) is proposing to convert the banking operations of its 96.8%-owned subsidiary, PT Bank Maybank Indocorp, to syariah banking and also to reduce the Indonesian subsidiary's share capital. The proposal was subject to Bank Indonesia's approval. The Bank said in line with the proposed conversion, a capital reduction exercise would be undertaken to reduce PT Bank Maybank's share capital to RM300.7m from RM346.8m. (Source: The Star)

Salcon: Eyes energy ops.
Water engineering group Salcon Bhd plans to venture into building hydroelectric, biomass and solar power plants within next year to expand and boost earnings. It has seven 30-year water concessions in China and one in Vietnam. According to Director Eddy Leong Kok Wah, Salcon is also planning to venture into new markets such as India, Indonesia and Bangladesh, where there is an urgency to build water and waste water treatment plants. (Source: Business Times)

MISIF: Steel consumption may grow 5%.
Malaysian Iron and Steel Industry Federation (MISIF) president Chow Chong Long said domestic steel usage is projected to grow at only 5 per cent to 7.5 million tonnes this year compared with 7.1 million tonnes last year, lower than an earlier forecast of 8-10 per cent growth. (Source: Business Times)

No comments: