KLCI chart reading : side way range bound
TNB buys stake in Integrax
Tenaga Nasional Bhd (TNB) has acquired 66,538,269 ordinary shares of RM1 each in Integrax Bhd, representing 22.12% equity interest in the company for RM106.5m cash. In a filing with Bursa Malaysia, TNB said it would become a substantial shareholder of Integrax upon completion of the acquisition, adding that the company intended to fund the purchase consideration entirely through internally generated funds. “The strategic acquisition will enable TNB to secure the coal handling services for its said power plant and enhance the efficiency and operations of its power station,” the statement said. TNB had on 23 March acquired the shares through a direct business transaction. The acquisition was made pursuant to a share sale agreement entered into with Halim Rasip Holdings SB. It said the purchase price of RM1.60 per share represents a premium of 13.5% to the five day weighted average market price of Integrax shares up to and including 18 March 2011, being the market day immediately preceding the share sale agreement of RM1.41. (Financial Daily)
ADCB meets investment bankers
RHB Capital Berhad’s single largest foreign shareholder Abu Dhabi Commercial Bank had called for a beauty parade among investment banks last week to pitch for an adviser role on the sale of its 25% stake in the local banking group. It is believed that CIMB Bank was among the shortlisted banks asked to participate in the pitch in which the majority of participants were foreign investment banks. “ADCB is expected to make a decision as early as end of this week on which investment bank will win that mandate” said a source.(StarBiz)
Malaysia Airlines may raise surcharge
Malaysia Airlines (MAS) has warned that it would raise its fuel surcharges as the conflict in the Middle East was accelerating the pace of crude oil price hikes, which in turn threatens airline margins. Fuel is a major component that makes up 30%-35% of an airline's overall cost and jet fuel prices have been on the rise, hovering slightly below three-year high of almost USD134 a barrel in Singapore. Crude oil for May delivery on the New York Mercantile Exchange was at USD105.38 a barrel yesterday evening. “We would have to add (at these levels) but we are also watching the markets. When and where we impose the fuel surcharges will depend on our route analysis,'' MAS chairman Tan Sri Dr Munir Majid said. MAS recently raised its fuel surcharges that it had imposed since 2008. MAS has 25% of its fuel hedged at USD88 a barrel. While Munir said that “provides some comfort in an extremely challenging situation,'' the hike in fuel surcharges were “inevitable.'' (StarBiz)
Sime settles Qatar oil project dispute
Sime Darby Bhd and Maersk Oil Qatar A/S (MOQ) have agreed to end their dispute pertaining to a project in Qatar. Sime Darby yesterday said its unit, Sime Darby Engineering SB (SDE), had signed a closeout agreement with MOQ on 17 March to settle all claims related to the project. In its filing to Bursa Malaysia yesterday, Sime Darby said the settlement will result in a writeback of some RM100m. Four years ago, MOQ contracted SDE to deliver an oil and gas-related project worth USD632m (RM1.9bn) in Qatar. In financial year ended 2010, Sime Darby had made provisions of RM733m for the MOQ project. Sime Darby said the settlement entails full and final settlement of all claims, including back charges and other claims between MOQ and SDE. SDE had been relieved of all remaining works under the contract except for warranty obligations, it added. The warranty period has been reduced from 24 months to 18 months from the date of the closeout agreement. Additionally, the 10% performance bond provided by SDE had been reduced to 2.5% of the contract price, or equivalent to USD16 m (RM49 m). (BT)
BNM expects announcements on Islamic mega banks this year
Bank Negara Malaysia (BNM) expects the two entities given the provisional licences to set up Islamic mega banks in the country to announce their investment plans this year. "We are giving them more time (to make the announcement) given the environment is more challenging," said its governor, Tan Sri Dr Zeti Akhtar Aziz, adding that the investments would be huge. On when the announcement would be made and the identities of those behind the mega Islamic banks, she said "it will be premature to say at this point of time". "As soon as they have made their final submissions that include business plans, their senior management and board members and the details surrounding their applications then the announcement will be made," she said at the press conference in conjunction with the release of BNM's Annual Report 2010 and Financial Stability and Payment Systems Report 2010 here Wednesday. (Bernama)
TM: UniFi subscribers almost doubled to 60,000 last year. Telekom Malaysia Bhd (TM) has almost doubled the number of customers for its high speed broadband service called UniFi, to 60,000 from 33,000 at the end of last year, beating its own estimates. (Source: Business Times)
Axiata: Suspends all dealings with Alcatel for 12 months. Axiata Group Bhd has imposed a 12-month suspension on Alcatel-Lucent group (ALU), including its Malaysian operations, which would bar it from any new bids for contracts, although it would continue all existing contracts. (Source: The Edge Financial Daily)
EON Bank: New CEO soon? Eon Bank Bhd may be one step closer to appointing a new group CEO to replace Datuk Michael Lor, with its board looking to submit a name to the central bank for approval soon. (Source: The Edge Financial Daily)
Property: Demand rebound lifts residential property market. The residential property market has been experiencing an upturn since the fourth quarter of 2009 as demand rebounded by 7.1% (2009: -2.3%) following improved consumer sentiments. Meanwhile, the increase in housing stock moderated in 2010 as housing started a declining trend. (Source: The Star)
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