ETCM (L), a wholly-owned subsidiary of
Tan Chong Motor Holdings Group (TCMH), has entered into a distribution agreement with Nissan Motor in respect of the sole and exclusive right to distribute Nissan brand completely built-up (CBU) vehicles in Laos. The total financial commitment for the new Nissan business in Laos for the first five years of operation including setting up of showrooms and working capital is estimated at US$5.0m to be funded by TCMH Group from its internal sources. Distribution of the vehicles is expected to commence in the 2Q10 with an initial sales volume of 200 units per year. (BMSB)
This news is not a surprise as we had indicated in our recent note of the potential for Tan Chong to penetrate the Laos market. It comes hot on the heels of its recent penetration into Cambodia. Given Laos’ small auto industry, earnings accretion from this new venture is unlikely to be significant in the near future. However, we are positive on this development as it will give Tan Chong access to this emerging market and allow it to diversify from an arguably saturated Malaysian auto industry. More importantly, it strengthens Tan Chong’s position as a representative for Nissan, not just within Malaysia, but now in the region as well. We think that this could pave the way for further appointments by Nissan.
Edaran Tan Chong Motor will continue to offer special hire purchase packages with interest rates starting from 1.98- 2.78% despite the increase in overnight policy rate (OPR). The packages would be offered to buyers of Nissan Sylphy, Grand Livina, Sentra, X-trail and Serena. "Going forward, we expect the OPR to rise gradually and the best thing to do is to lock in the current lower interest rates before they rise further," said ETCM executive director, Datuk Ang Bon Beng. (Bernama)
This is in line with our expectations. We have earlier argued that the higher HP rates for non-national cars following the increase in OPR rate is unlikely to dent vehicle sales as banks and HP companies might be prompted to cut rates to attract sales. Apart from that, the anticipation of a further OPR hike might also prompt consumers to bring forward their purchases.
Hong Leong Bank has raised its buyout offer to smaller rival
EON Capital to RM7.30 a share. Yesterday's last-minute change came about after EONCap's new board, led by acting chairman Gooi Hoe Soon, who is among the seven independent directors appointed recently, told Hong Leong that it would reject the proposal if the offer price was not raised before the deadline today. The board of EONCap will have to decide today if it will table the RM5.06bn sweetened deal to shareholders. Like in the previous proposal, Hong Leong has required EONCap to deal with it exclusively on the sale in good faith. (BT)
Maybank has secured an additional US$200m funding facility from the Japan Bank for International Cooperation (JBIC) bringing it to US$400m the total financing it has received from the Japanese bank to date. The additional facility would be used to support customers which had business relations between Japan enterprises in Malaysia and other Asean countries where Maybank or its subsidiaries operated. (Starbiz)
The
Securities Commission (SC) has appointed Nik Mohd Hasyudeen Yusoff as executive chairman of the
Audit Oversight Board (AOB), a special independent body set up to monitor auditors. The AOB began operations yesterday. The regulator also appointed six non-executive members of the AOB: Datuk Ali Abdul Kadir, Nor Shamsiah Mohd Yunus, Goh Ching Yin, Datuk Azmi Ariffin, Cheong Kee Fong and Chok Kwee Bee. Nik Hasyudeen brings with him 23 years of industry experience and international exposure. Prior to joining the AOB, he was chief executive officer of Thought Leader of Inovastra Sdn Bhd, a strategic business advisory practice based in Kuala Lumpur.(BT)
Malaysia Airport Holdings plans to grow revenue from commercial or non-aeronautical activities to RM2.14bn in 2014, says MD Tan Sri Bashir Ahmad. Commercial development, including growing its retail sales and developing part of its landbank around KL International Airport (KLIA) in Sepang, will be the key driver of MAHB's goal of achieving RM1.1bn net profit by 2014. This is set against a revenue target of RM3.2bn.
- Development of its landbank includes the Malaysia International Aerospace Centre (MIAC) at Sultan Abdul Aziz Shah Airport in Subang, Selangor, and the proposed KLIA Aeropolis in Sepang. "We have an extensive landbank (at KLIA) that is available for commercial development where we will establish strategic alliances with major commercial property developers before the end of the year," says Bashir. (BT)
Berjaya Corp, controlled by tycoon Tan Sri Vincent Tan Chee Yioun, plans to list
Berjaya Roasters (M), the operator of Kenny Rogers Roasters chain of restaurants. It plans to list Berjaya Roasters through
Berjaya Food (BFood). Under the proposal, Berjaya Group Bhd, a wholly-owned unit of Berjaya Corp, will inject the entire stake of Berjaya Roasters into BFood, which will be satisfied by an issue of 141.35m new BFood shares at 51 sen each, worth RM72.09m in total. (BT)
Tan Sri Vincent Tan Chee Yioun has handed over the reins of
Berjaya Media that publishes the Sun newspaper to son Datuk Robin Tan Yeong Ching. Robin, 35, replaces Vincent, 58, as chairman and director effective immediately. Robin joined Berjaya Group Bhd in 1995 as an executive and subsequently became the general manager of corporate affairs in 1997. Currently, he is the chief executive officer of Berjaya Sports Toto and an ED of
Berjaya Corp and Sports Toto Malaysia. (BT)
Multi Purpose Holdings Bhd (MPHB) announced that it will acquire 18m shares or 2.37% equity in
U Mobile from Detik Ria for RM54m. MPHB also said it had acquired 15m shares or 1.98% stake in U Mobile from its parent U Television (UTV) for RM75m. MPHB revealed that it had subscribed to 15m rights share issue (one for one basis) at RM1 per rights share thus now bringing its stake in U Mobile to 6.33% valued at RM144m. (Malaysian Reserve)
AET Tanker Holdings Sdn Bhd, a subsidiary of
MISC, has taken delivery of its 49th Aframax tanker. Called "Eagle Kuantan", the 107,000-deadweight-tonne tanker will initially be employed on a time charter with one of AET's long-term customer-partners. Eagle Kuantan is the second of eight Aframax vessels to be built by Tsuneishi Shipbuilding Co Ltd at its yard in Tadotsu, Japan, for AET. The rest are scheduled for delivery later this year and next. (BT)
Malaysia Airlines will start flying to the Saudi Arabian city of Dammam next month. The service begins on May 5, twice weekly every Wednesday and Saturday. (Bernama)
Sunway Holdings has won a RM88m contract from Heritage Lane Sdn Bhd, a whollyowned subsidiary of KLCC Holding Sdn Bhd, for Phase 2 of Impiana KLCC hotel development in Jalan Pinang, Kuala Lumpur. The job involves building an extension to the existing hotel wings comprising an additional three-storey car park podium and 22-storey tower block above the existing four-storey car park podium. The proposed project is targeted to be completed on November 2 2011. (BT)
Amanahraya Real Estate Investment Trust (ARREIT) is looking at buying a few more buildings in the Klang Valley and Penang, a move that will swell its total assets beyond RM1bn. The REIT now has 13 assets with a combined fund size of RM748m. It will soon complete the purchase of two more that will increase its size to RM913m."The acquisitions of Selayang Mall and the 13-storey Dana 13 in Ara Damansara should be completed in May," said chief operating officer Abas A Jalil. (BT)
The project to deepen
Penang Port channel to allow larger vessels to come in will be made a priority under the 10th Malaysian Plan, Deputy PM Tan Sri Muhyiddin Yassin said. He said the government's commitment would complement the RM1.1bn investment pledged under Penang Port's expansion and improvement business plan from 2008 to 2012. (Bernama, Malaysian Reserve)
