20100714 1207 Malaysia Corporate News.

PAAB to sign deal with Perlis next month
Notwithstanding the problems in the Selangor Water restructuring sector, Pengurusan Aset Air (PAAB) will seal its deal with the Perlis government early next month, according to a source. It is understood that a press conference for this purpose will be called on 2 Aug. The deal, which was supposed to be sealed by end-May, “ran into the usual red tape” issues but everything was confirmed now and the signing would take place in early August, the source said. He declined to divulge the value of the deal but said it would follow largely in the footsteps of the takeover of water assets in Johor which were acquired at one time book value and was concluded on a “willing-buyer-willing-seller” basis. (Starbiz)

BRDB to jointly develop 2 parcels of MPHB’s land
Bandar Raya Developments (BRDB) is teaming up with Multi-Purpose Holdings group to develop several parcels of land measuring a total of 670.7 acres belonging to the latter in Penang, Rawang and Gombak. BRDB had on the same day entered into three separate memoranda of understanding (MoUs) with MPHB to record their intention to collaborate with each other on the proposed development of the land in Penang (80 acres), Rawang (266.7 acres) and Gombak ((324 acres). (FinancialDaily)

Nestle investing RM20m to raise Kit Kat plant output
Nestle (M) will invest RM20m this and next year to increase the production capacity at its Kit Kat plant in Chembong, Negeri Sembilan. Nestle Products SB business executive manager (confectionary division) Andrew Cooper said this would increase the plant’s capacity by 30%. (Starbiz)

Petra Energy gets new director
Integrated oil and gas brown field services provider Petra Energy has appointed three new directors – Abdul Rahim Hamid, Ahmad Azra Salled and Surya Hidayat Abdul Malik – effective yesterday. Abdul Rahim and Ahmad Azra were independent and non-executive directors while Petra Perdana executive director Surya Hidayat was a non-independent and non-executive director. (Starbiz)

MMosaics to be privatised at RM2.30 a share
Malaysian Mosaics announced yesterday that the company has received a privatisation proposal from its major shareholder, Gek Poh (Holdings) SB, at RM2.30 cash per share. The privatisation will be done via a selective capital repayment exercise whereby all minority shareholders of MMosaics (except Gek Poh and its subsidiary, Pembangunan Melati SB), will receive a cash payment of RM2.30 per share. The existing paid-up share capital of MMosaics will be reduced by cancelling all the ordinary shares issued and the company will be delisted. (FinancialDaily)

Bonds: Cagamas Bhd plans to sell up to RM5b Islamic bonds. Cagamas Bhd yesterday rolled out plans to sell up to RM5b of Islamic bonds crafted to suit Middle Eastern investors, a segment that has shied away from offerings from this part of the world due to differences of opinion on Shariah compliance. (Source: Malaysian Reserve)

LBS Bina: To launch RM5b China project next year. Property developer LBS Bina Group Bhd will launch its 4th project, worth over RM5b, in Zhuhai, China, in the 2nd half of next year. The 60:40 joint venture between LBS and Jiuzhou Group, a Chinese GLC, has been delayed by 3 years because of the uncertain economic conditions. Apart from that, it plans to launch 3 housing projects in Malaysia valued at RM600m and is issuing RM135m sukuk to part-finance those projects. (Source: Malaysian Reserve, Business Times)

Markets: Bursa has 45 firms under PN17 status. There are now 45 companies listed on Bursa Malaysia that are classified under PN17 or financially-troubled companies. Finance Minister Datuk Donald Lim Siang Chai said the ministry and Bursa would gather the views of those in the market on improving the financial standards of problematic local companies. (Source: The Star)

Nestle: Investing RM20m to raise Kit Kat plant output. Nestle (M) Bhd will invest RM20m this and next year to increase the production capacity at its Kit Kat plant in Chembong, Negeri Sembilan and this would increase the plant's capacity by 30%. (Source: The Star)

Utilities: Minister warns of water supply crisis. According to Energy, Green Technology and Water Minister Datuk Seri Peter Chin, the water restructuring issue in Selangor should not be muddled with the Langat 2 water treatment plant project as any delay in implementing the latter will result in a 13-14% water deficit by 2014. The estimates were based on the current level of water consumption in Selangor. (Source: The Star)