RM21.80 a share offer for Tanjong buyout
After days of speculation of an impending buyout offer for Tanjong plc, the intention to take the power and gaming outfit private was confirmed on Friday evening at a press conference. A special purpose vehicle (SPV) established by Usaha Tegas Sdn Bhd and its concert parties, Tanjong Capital SB, have served a notice of conditional takeover offer to acquire all the ordinary shares of Tanjong at a cash offer price of RM21.80 apiece, hence valuing the company at RM8.8bn and minorities’ shares at RM4.7bn. The offer price is also at a premium to analysts’ average target price for Tanjong of RM19.08, according to Bloomberg data. (Malaysian Reserve)
Prudential said to be eyeing P&O UK-based insurer
Prudential plc is looking at acquiring the insurance businesses of Pacific & Orient Bhd (P&O), sources say. It is learnt that Prudential has written to Bank Negara Malaysia to seek the central bank’s approval to begin talks with P&O on the potential sale of the group’s insurance business. The price of the transaction is not known. An industry observer says Prudential’s interest in P&O is not surprising, after an unsuccessful buyout attempt in American International Assurance (AIA), the Asian unit of American International Group (AIG). AIG’s assets include its Malaysian insurance business. (The Edge Weekly)
Are E&O shareholders looking at privatisation?
Eastern & Oriental (E&O) major shareholders are believed to be considering a privatization of the property developer, sources say. The news sent the stock to a fresh high in heavy trade last week. E&O managing director Datuk Terry tham Ka hon is the single largest sharehodler in E&O with a combined direct stake and indirect stake of some 16% of the company. The company is also active in share buy-backs, which signifies that it is under-valued. (The Edge Weekly)
Scomi Engineering’s Brazil monorail tender re-issued
Scomi Engineering Bhd seems to have gotten another shot in its bid for the 23.9km RM3bn Tiradentes monorail project in Sao Paulo, Brazil. Sources said the Brazilian authorities had requested for a re-issue of the tender, with modifications such as a ‘less tight’ delivery dateline and better payment structure. It is understood the reissue of the tender started early last week, with all four participating companies – a consortium of Scomi Engineering Bhd and CR Almeida SA Engenharia de Obras, Hitachi Ltd of Japan, Bombardier Inc of Canada and Switzerland’s Intamin AG – still expressing interest. (Financial Daily)
Hirotako’s stake in PA Resources piques interest
The emergence of Hirotako Holdings Bhd as a major shareholder in PA Resources Bhd was not something that the market had expected. It is a deal, which on the face of it, would be hard to rationalise. But it did happen. Hirotako, an automotive components manufacturer became a major shareholder with 15.3% equity interest in aluminium products maker PA Resources, after which the share price of Hirotako soared to its highest in about nine years. Hirotako acquired the shares on the open market and also by subscribing for a rights issue undertaken by PA Resources. The entry of Hirotako as a major stakeholder in PA Resources raises crucial questions. Among them is what kind of synergistic benefits both entities can derive from the relationship. Another is whether Hirotako will further raise its stake in PA Resources. (The Edge Weekly)
MPHB plan for investors to own Magnum shares
Multi-Purpose Holdings Bhd (MPHB) may offer its shareholders the opportunity to participate directly in its gaming outfit, Magnum Corp Sdn Bhd, by way of restricted offer for sale (ROS), its chief said. Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said the plan will allow MPHB's 5,000-odd shareholders to own Magnum shares. MPHB is looking to relist Magnum on the Main Market of Bursa Malaysia. Lau said the timing will depend on the exit strategy by CVC Capital Partners, a global private equity firm which holds 47% of Magnum. He said CVC had indicated that it wanted to make an exit, but no time-frame was given. MPHB holds a 51% stake in Magnum, which operates 485 gaming outlets nationwide. (StarBiz)
MAS, AirAsia X get rights to fly to Haneda
Two Malaysian carriers have each been granted rights to fly to Haneda in Japan three times a week by the local government. Although the Malaysian Government secured traffic rights for seven flights a week to the alternative airport in Tokyo, it allowed Malaysia Airlines (MAS) and low-cost long-haul carrier AirAsia X three flights each and retained one. AirAsia X's flights to Haneda Airport are "still pending application", its chief executive officer Azran Osman-Rani said as to when it would begin operation. MAS will introduce three flights a week between Kota Kinabalu and Haneda from 15 Nov, its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said. "Haneda is basically like our Subang airport, while Narita Airport is a bigger airport. Haneda is a lot nearer to Tokyo and was previously open to domestic flights only. But due to the congestion at Narita, the Japanese government is opening it up to international flights," he added. (StarBiz)
