20100929 1025 Malaysia Corporate News.

Selangor water issue is still uncertain
The Federal Government understands the urgency to speed up the water restructuring process in Selangor and is working towards resolving the matter, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. “We are taking steps to resolve this as soon as possible,” he said. “No decision had been made on water tariff hikes yet. Negotiations are still ongoing. As far as tariffs are concerned, the Government will consult and communicate with members of the public first before we talk about a hike,” Chin said. At a separate meeting, Selangor Menteri Besar Tan Sri Kahlid Ibrahim said the state “has not given permission” for any tariff hike. It is understood approval from both governments are needed for a hike to materialize. (starbiz)

Hong Leong closer to EONCap takeover
Hong Leong Bank is a step closer to taking over EON Capital (EONCap) after the latter's shareholders approved the takeover bid on Monday, group managing director Yvonne Chia said. The EGM saw 97% of EONCap's shareholders supporting the RM5.06bn offer by Hong Leong Bank to buy its assets and liabilities. Voting was done by way of poll. But the merger is not a done deal yet as it needs a decision from the court. Meanwhile, Bank Negara Malaysia has denied Ng Wing Fai a seat on the board of EON Capital (EONCap) in the latest blow to Hong Kong-based Primus Pacific Partners that is now resisting Hong Leong Bank’s takeover bid. (BT)

MAS unit, Sabena in aircraft component JV
Malaysia Airlines said its aerospace engineering unit formed a joint venture with Sabena Technics SA to provide aircraft component repair and overhaul services in Malaysia. The venture would offer avionics, electrochemical systems, fuel systems and engine components for the B737 new generation, A320 and ATR aircraft types. (Starbiz)

Proton and Fernandes fight over Lotus name
Proton Holdings, which owns British-based Group Lotus, squared up for a fight with racing team boss Datuk Seri Tony Fernandes on Monday over the right to use the evocative brand in Formula One. The Malaysian national carmaker said in a statement that it had terminated a licence for Fernandes’ 1Malaysia Racing Team to compete as Lotus Racing and would “take all necessary steps” to stop him using the Team Lotus name from 2011. Fernandes, the Malaysian entrepreneur who announced at last weekend’s Singapore Grand Prix that Lotus Racing would compete as Team Lotus next season, fired back a broadside of his own. Lotus Racing chief executive Riad Asmat said in a statement that the team had issued proceedings in the London High Court “for a declaration that Team Lotus Ventures has the rights to use the Team Lotus name and everything associated with that brand in relation to Formula One’’. (FinancialDaily)

Astro unit faces RM1.3bn suit
Low-profile television support equipment provider, AV Asia SB, yesterday filed a suit against Measat Broadcast Network Systems SB (MBNS) and another company for alleged breach of a mutual non-disclosure agreement, claiming some RM1.3bn in loss of potential profits. In its writ of summons, AV Asia alleged that MBNS, a subsidiary of Astro, had used the former’s confidential information with regard to a technical solution to transmission disruption during rain to launch its recent product, Astro B.yond high definition television. (FInancialDaily)