A mini township is set to take shape on the southwestern end of Penang island in three years, if
Hunza Properties’s (HPB) plan takes off. The developer, which recently bought about 6.48ha land in Bayan Baru for RM82m, is eyeing a multi-billion ringgit integrated development, which will serve as a mini city, executive chairman Datuk Khor Teng Tong said yesterday. "We expect to complete the proposed acquisition latest by the end of our 2012 fiscal year and hope to get the project off the ground in that year," he said. (BT) This news did not come as a surprise as the company has earlier expressed its intention to develop the freehold piece of land located in Bayan Baru, Penang, into a 'mini city'. Although details on the GDV are still sketchy at this juncture, the potential acquisition should help improve Hunza Prop's earnings visibility beyond 2012-13. Apart from the 484- acre landbank in Bertam (on mainland Penang), Hunza Prop does not have any other undeveloped landbank in Penang.
EON Capital, which is being eyed for a takeover by
Hong Leong Bank, has rejected the bigger rival's RM4.92bn offer. The offer is not in the interest of the group and its shareholders, EON Capital told the stock exchange yesterday, adding that the unsolicited proposal will not be presented to shareholders.
- "This undervalued acquisition bid does not account for EON Capital's significant recent and projected growth, underpinned by the company's recently completed transformation programme," EON Capital chairman Tan Sri Syed Anwar Jamalullail said.
- Hong Leong Bank on 21 Jan made a cash offer to buy EON Capital's entire assets and liabilities for RM7.10 per share.
- Hong Leong Financial Group president Raymond Choong, also a director of Hong Leong Bank, said it was disappointed with EON Capital's decision.
- The rejection is unlikely to mark the end of the deal that may create the country's fourth largest bank by assets, after Malayan Banking, CIMB Group Holdings and Public Bank. EON Capital's major shareholders who are keen to sell may still have the option to ask for a special shareholder meeting to remove the seven-member board, potentially clearing the way for Hong Leong's bid to be reconsidered.
- However, sources said there was no such decision yet. "They have not decided what to do next. The major shareholders may want to wait and see before they come to a decision," the sources said.
- EON Capital may still want to hold out for other potential bids to come in. It has written to invite other local lenders, namely Alliance Financial Group, AMMB Holdings and RHB Capital to bid for it. Both AMMB and RHB have turned down the opportunity, it was learnt, but Alliance has yet to make its stand. Mulpha International, a property company, has also asked for the regulator's consent to negotiate for a share purchase in EON Capital. (BT)
Alliance Bank Malaysia is still assessing the answers that its two top executives provided to the board's queries in an internal probe, sources said. CEO Datuk Bridget Lai and COO Shim Kon Teck had each been asked to answer a set of questions as part of a probe on corporate governance issues. They had replied to these on Monday, last week.
- "The (bank's) lawyers and accountants are still going through many, many documents," say the source. The source also could not say how much more time the professionals required to complete their assessment, but indicated that it may take a week more. Once this is done, the board is expected to act on the lawyers' legal advice. (BT)
Crude palm oil (CPO) price is likely to trade around RM2,500 a tonne, but could do better in the next few months, Malaysian Palm Oil Council (MPOC) chairman Datuk Lee Yeow Chor said."Cargo surveyors' reports show that January exports are 20% higher than in December. With the recent floods in Sabah, output is affected and the multiplier effect on palm oil prices can be significant. "Therefore, prices are not likely to slide further and should find strong support at RM2,400 per tonne," he said.
- "We're now entering the low seasonal output months of February and March. As stock levels deplete, it is foreseeable that prices could trade at a higher band of between RM2,500 and RM2,700 per tonne towards the middle of the year." Yesterday, third month benchmark palm oil futures traded on the Bursa Malaysia Derivatives market inched RM7 higher to close at RM2,452 a tonne. (BT)
Malaysia's
palm oil production is expected to recover to 18m tonnes this year, in line with growing demand for palm oil products, said Minister of Plantation Industries and Commodities, Tan Sri Bernard Dompok. In 2009, exports of palm oil products declined by 24% to RM49.6bn compared with RM65.2bn previously. The decline was attributed to lower CPO" price of RM2,244 last year vs RM2,859 in 2008. (Bernama)
After nine years of holding the exclusive rights to import luxury sports car
Porsche to Malaysia, businessman Datuk Mokhzani Mahathir has decided to pass the wheel over to conglomerate
Sime Darby. “I voluntarily terminated my agreement with Porsche, so Sime Darby could take it up. I want to get away from the AP (approved permit) and import of car business. “I believe Sime Darby can do a better job as it is a GLC (government-linked company),” Mokhzani said.
- Sime Darby already has a strong motor division which imports and distributes BMW, MINI, Rolls-Royce, Ford, Land Rover, Peugeot, Hyundai, Alfa Romeo, Ferrari, Suzuki and Mitsubishi passenger vehicles in certain markets in the Asia-Pacific. The company will officially take over the business from Mokhzani’s privately held Jaseri Automotive Group Sdn Bhd by end-March. (Starbiz)
TIME dotCom launched its newest broadband package, TIME Fibre Broadband, which Internet access speed of up to 50 Mbps. For a start, it will be available to residences of high-rise condominiums at Mont'Kiara in Kuala Lumpur. By June 2010, it will be available to most high-density areas in the Klang Valley.
- "We will be in downtown KLCC around the second to third quarter ... by first half 2011, we will cover 75 to 80% of the high-density areas," said TdC CEO Afzal Abdul Rahim.Afzal declined to reveal how much it costs to roll out the service but hinted the company will spend as much as RM150m on capex in 2010, which is what it usually invests annually. It expects to break even on its investments in less than three years.
- The group's broadband offering comes in three packages - the 2Mbps, 5Mbps and 10Mbps. Subscribers will get at least 10 hours a month of free 50 Mbps "boost". "We want to offer up to 50Mbps because we can. We are not talking about best effort speeds, it's real speed that's achievable," Afzal added. (BT)
U Mobile's major shareholder Vincent Tan is said to have struck a deal to sell a 33% stake in the celco to Singapore Technologies Telemedia (STT) in a deal that could be worth RM626m or RM5/share. It is learnt that a term sheet was signed this week by Tan's company and STT, the parent of
StarHub.
- Given its expertise and knowhow in the telco sector, StarHub is seen as the logical choice to drive U Mobile once the deal is formalised in the next few weeks. Sources said talks with STT began last Sept and a due diligence on U Mobile is said to have been completed. (Starbiz)
Tune Talk has garnered 0.5m subscribers and plans to have 1m by end-Aug. "Simplicity has been our greatest weapon and with our one rate - 22 sen per call anywhere in the country at any time - we are slowly getting (our) space. The company hopes to breakeven by July but CEO Jason Lo did not disclose any figures. It is exploring ways to enter the fixed broadband sphere. (StarBiz)
Digital city,
i-City, has received the required licences from the Malaysian Communications and Multimedia Commission (MCMC) that would allow it to operate as a telco-neutral development. i-City is a 28.8ha commercial development in Shah Alam where digital technology has been integrated into the fabric of the development, designating i-City as both a MSC Cybercentre as well as a tourism destination. (BT)
Volkswagen Group Malaysia Sdn Bhd (VGM) says 2010 will be a bumper year, with sales of VW vehicles more than doubling from about 885 units in 2009. Managing director Andreas Prinz said recently-introduced models and new showroom openings would markedly boost sales this year. VGM also is banking on a new, powerful yet fuel-efficient VW car, Prinz said. The 1.4-litre car featuring the innovative TSI engine technology will be launched by June this year, he added.
- Three new VW showrooms are due to be opened by VGM's sales partners in the next few months. Two will be operated by Federal Auto Holdings and another one by a subsidiary of Permaju Industries at Taman Tun Dr Ismail in Kuala Lumpur. "We are in talks with at least three new partners. Our target is to have up to 14 sales and services outlets by the end of the year," VGM sales director Daniel Tan said.
- VGM also recently introduced a five-year warranty programme with unlimited mileage for its customers. The two-year manufacturer's warranty plus three-year extended warranty programme is offered to all VGM's customers purchasing a new Volkswagen car from 2010. Existing customers can also buy the scheme so long as their vehicles are still within the manufacturer's two-year warranty period. (BT)
The
takaful industry will continue its steady growth momentum this year, in line with the expansion of the industry globally which has seen an annual growth rate of 25% the past few years. The industry is in a strong position to increase further in an environment of stronger economic performance projected for 2010, said Malaysia Takaful Association chairman Datuk Syed Moheeb Syed Kamarulzaman.
- "The efforts and commitment by industry players focusing on customer service with a stronger marketing strategy will enable further growth in the industry," he said. The combined family and general takaful sector is estimated to have recorded 15% growth or RM3bn in premiums last year over RM2.7bn recorded in 2008, Syed Moheeb said. (Bernama)
Iris Corp has signed an initial deal to award a RM123.1m contract to China’s Guangdong Machinery Imp & Exp Co Ltd to build a waste incineration power plant in Phuket, Thailand. Both parties are expected to sign the final contract on March 30 2010. The plant will have a capacity of 600 tonnes per day. (BT)
Parkson Holdings subsidiary Serbadagang Holdings Sdn Bhd has received a court sanction to proceed with its proposed acquisition of a 43.31% stake in Qingdao No 1 Parkson Ltd (Qingdao Parkson) from China Qingdao No 1 Store (China Qingdao) for 185m yuan (RM92.5m). Parkson said the acquisition would enable the group to tap into a larger share of the earnings of the Qingdao Parkson in which the group's shareholding would be raised from 52.6% to 95.9%. The acquisition is expected to be completed by 1Q10. (Financial Daily)
London Biscuits has signed a deal to buy 32% of poultry firm
TPC Plus for RM7.6m cash to secure egg supply and expand its distribution network. Main Market-listed TPC's principal business activity is poultry farming. It also makes animal feed. London Biscuits will use internal funds to finance the deal, which still needs financial and legal due diligence. London Biscuits is one of Southeast Asia's biggest cake and confectionery makers. It is expanding production capacity for its range of products. (BT)
KUB Malaysia has won a RM29.8m contract from the Information, Communications and Culture Ministry to upgrade the digital TV playout centre for Radio Television Malaysia (RTM). The contract, awarded to wholly-owned unit KUB Telekomunikasi Sdn Bhd, is for 59 weeks. (BT)
