20101008 1225 Malaysia Corporate News.

SC cautions Mudajaya, company also to develop hydro power project in Laos
The Securities Commission (SC) yesterday issued “caution and reminder” to Mudajaya Group and its board to “strictly observe its disclosure obligations” on transactions relating to the company’s investment in an independent power plant (IPP) in India, in particular the transfer of funds between related entities. In a press statement yesterday, the SC said its review of the transactions had concluded that Mudajaya “failed to make adequate disclosures on pertinent matters”. In a separate announcement yesterday, Mudajaya Group has inked a memorandum of understanding (MoU) with the Laos government to develop a nominal 60MW Nam Poui 1 hydroelectric power project with a possible concession period of 30 years, said the company in a filing to Bursa Malaysia. Mudajaya said its wholly owned subsidiary Mudajaya Corp (MCB) had on 6 Oct signed the MoU with the Laos government’s Ministry of Planning and Investment for the production and supply of electricity. Mudajaya said under the MoU, the Laos government would grant MCB the “sole mandate and exclusive right to develop, implement and operate” the project on a build-operate-transfer basis if the project was “feasible in all aspects”. (Financial Daily)

Dialog gets exclusive rights to develop terminal
Dialog Group has been given the exclusive rights to develop an independent deep water petroleum terminal at Pengerang, Johor for a period of 60 years by the State government of Johor. Last June, it had signed an MOU with the Johor state government to own and develop an independent deep water petroleum terminal with harbour port, jetty and other marine facilities. (BT)

TNB wins arbitration against Prai Power
Tenaga Nasional has won an arbitration case against Prai Power SB, ultimately owned by MMC Corp, over payments to keep the capacity of a power plant at a certain level. Prai's claim of more than RM150m was dismissed and it also has to pay TNB more than RM10m following the utility's counterclaim. It also has to pay TNB's travel and other fees related to the arbitration. (BT)

Talam subsidiary sells land in Selangor
Talam Corp, under its wholly owned subsidiary Juara Tiasa SB, has sold a piece of land in Bukit Sentosa in Serendah, Selangor, for RM28.5m. The freehold land is designated for use as a private institution, hostel and club, including related structures. In a statement to Bursa Malaysia, Talam said the proceeds will be used to settle outstanding loan facilities. (BT)

Proton recalls cars
Proton Holdings has announced a voluntary recall of its Gen2 and Satria Neo cars manufactured between 2004 and 2008 due to a clock spring malfunction that raised safety concerns. The recall, which is part of Proton’s Global Quality Assurance programme, affects 15,911 or 2% of 660,000 cars produced and sold over that period. The clock spring connects switches and airbag to the radio, horn and cruise control. (StarBiz)