20101029 1318 Malaysia Corporate News.

Mortgage cap decision soon
Bank Negara Malaysia may make it harder for Malaysians to buy more than two houses as it seeks to stem speculative buying that is pushing up property prices. Sources said the central bank would be meeting with banks next week to discuss plans for a mortgage cap whereby loans would be limited to a portion of the property value. "The expectation is a cap of about 70%-80%. We think a directive will be issued to cap," said two sources with knowledge of the meeting. Earlier, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said it was prepared to take pre-emptive action and that it has wide-ranging instruments to prevent a property bubble. "We want to promote house ownership, but we want it to be done in an orderly manner and we don't want speculative activities," she told reporters on the sidelines of the Global Islamic Finance Forum in Kuala Lumpur yesterday. (BT)

MAHB signs joint deal on Maldives airport
Malaysia Airports Holdings (MAHB) yesterday signed a joint-venture agreement with GMR Infrastructure Ltd and GMR Male International Airport Ltd (GMIAL) for the rehabilitation, expansion, modernization, operation and maintenance of Male International Airport, Maldives. MAHB told Bursa Malaysia yesterday that it was based on a build-operate-transfer model. The tenure of the concession is 25 years starting from the handover date and may be extended by another 10 years subject to mutual terms and conditions between the relevant parties. Based on the expected construction cost of USD373m, the cost attributable to MAHB (by way of equity contribution and/or contingent liabilities for shareholder’s support and/or corporate guarantees, if required) is about USD86m. MAHB and GMR Infrastructure will subscribe for shares in GMIAL based on the shareholding percentages of 23% and 77%, respectively. (StarBiz)

Bursa unfazed by SGX-ASX merger
Bursa Malaysia does not expect the proposed merger between the Singapore Stock Exchange (SGX) and Australian Stock Exchange (ASX) to affect the local bourse's performance and competitiveness. Chief executive officer Datuk Yusli Mohamed Yusoff said this is due to Bursa Malaysia's unique features, competitive products and new offerings. Yusli did not elaborate on the unique features. He spoke to reporters after delivering a keynote address at the final day of the Global Islamic Finance Forum in Kuala Lumpur yesterday. "We will make sure the products and services we offer are of interest to both foreign and local investors," he said, noting more products will be introduced. (BT)

Southern Acids to unlock value of land in Kota Kemuning
Southern Acids (M) (SAB) is set to unlock its holding of 644.49 acres of land bordering Kota Kemuning, Shah Alam, although its board of directors is still exploring its options. “There are plans to unlock the value but the board has not decided what to do. Nothing is finalized yet,” said SAB chairman Tan Sri Low Boon yesterday. Low said while there is “no shortage of suitors” for the land known as Thangamallay Estate, which is home to its palm oil plantation, he stressed that the board is evaluating all available options before making any decision in the next three to six months. (Financial Daily)

Loh & Loh to be delisted
Javace SB, which has made a mandatory take-over offer to acquire all shares in Loh & Loh Corp, has received valid acceptances resulting in it and the parties acting in concert holding 65.84m shares in Loh & Loh. This represents 96.82% of the issued and paid-up capital of the company, Loh & Loh told Bursa Malaysia yesterday. The offerors do not intend to maintain the listing status of Loh & Loh in the event it holds 90% or more of the issued and paid-up share capital. Hence the shares of the company will be suspended from trading on 8 Nov, and its listing status will be withdrawn from the official list of Bursa Malaysia.(StarBiz)

Petronas to expand Malacca refinery
Petroliam Nasional (Petronas) plans to expand and upgrade its Malacca refinery to produce higher-quality fuel and meet rising demand after recently raising the plant’s capacity to 290,000 barrels per day (bpd), industry sources said. Upgrades would allow Petronas to process more sour crude at the refining complex as the country’s sweet crude production declined, one of the sources said. The study, which would determine the capacity and investment costs, was expected to be completed in first-quarter next year, he said. The expansion would be carried out at the refinery’s Train 1, which has a design capacity of 100,000 bpd but operates at 120,000 bpd, the source said. (StarBiz)