20110330 0959 Malaysia Corporate Related News.

KLCI chart reading :
side way range bound little upside biased, immediate resistance near 1530 level.

Founding member Nagendran returns to Perisai
Almost a year after his departure from Perisai Petroleum, Nagendran Nadarajah, one of the company’s founding members, is making a comeback to the oil and gas service provider. Perisai has proposed the acquisition of Garuda Energy from Nagendran for USD70m to be satisfied by way of USD50m cash and the issuance of new Perisai shares at an issue price of RM0.65 per share. Based on Perisai’s estimated enlarged capital, Nagendran would own about 12% of Perisai should the deal go through. (FinancialDaily)

Petronas, BASF mull RM4bn joint investment to set up petrochemical plant in Malaysia
Petronas and German-based BASF are considering a potential joint investment sum of RM4bn to set up a plant to produce petrochemical products in Malaysia. The joint venture project to produce specialty chemicals in Gebeng in Pahang and elsewhere in Malaysia, which is subject to a joint feasibility study, is also expected to generate some 500 high skilled jobs upon completion. BASF and Petronas had signed a MoU on 6 Dec 2010 to undertake the joint venture. (Malaysian Reserve)

Kencana Petroleum bags RM216m Petrofac job
Kencana Petroleum has clinched a RM216m contract to engineer and build the well head platforms for the Cendor oil field. Under the contract awarded by Petrofac, Kencana will undertake the engineering, procurement and construction of the platforms located off the coast of Terengganu. This is a one-off construction contract and is expected to be completed within 2Q12. The contract is expected to contribute to earnings in FY11 and FY12. (Malaysian Reserve)

AirAsia’s no fuel surcharge policy stays AirAsia CEO Datuk Seri Tony Fernandes says the airline has no plans to impose a fuel surcharge although other airlines have taken such a move. He said that they “don’t want to deter travel” and that “fares can stay where they are”. (FinancialDaily)

MISC to net USD167m from sale and charter back of ageing vessels
MISC expects to realize net cash of about USD167m from a gain of disposal of USD33m from the sale and charterback of four tankers from its existing fleet. Its subsidiary AET Inc had entered into the sale and charterback for two Aframaxes and two Very Large Crude Carriers with special-purpose companies owned by ICON Capital. The move was part of AET’s medium and long-term fleet rejuvenation strategy through the phasing out of the older vessels owned by the company. (FinancialDaily)

MRCB: Inks deal with Ekovest. Malaysian Resources Corporation Berhad has entered into a joint venture with Ekovest Berhad and KL Bund Sdn Bhd in relation to the River of Life Project. MRCB would have 40% equity in JV company while Ekovest would hold 60% stake. (Source: Bursa Malaysia)

DRB-HICOM: VW to make Pekan regional hub, plans to make 30,000 vehicles by 2018. DRB-HICOM Bhd's tie-up with German automotive giant Volkswagen AG (VW) to manufacture VW cars at the former's plant in Pekan, Pahang is expected to produce more than 30,000 (VW) vehicles at the plant by 2018. Pekan will become the regional automotive hub for VW. (Source: The Star)

Metro Kajang: To beef up plantation, property units. Metro Kajang Holdings Bhd is buying more land in Kalimantan, Indonesia and in the Klang Valley to beef up its core plantation and property development divisions to drive earnings. Metro Kajang was looking to buy 20,000ha of plantation land from a local landowner in east Kalimantan. (Source: Business Times)

Petrolchemical: Petronas and BASF mull RM4b joint investment to set up petrochemical plant in Malaysia. Petroliam Nasional Bhd (Petronas) and BASF SE are considering a potential joint investment sum of RM4b to set up a plant to produce petrochemical products in Malaysia. (Source: The Malaysian Reserve)

Property: Malaysia to allocate land for affordable homes. The government will allocate a portion of its landbank for the construction of affordable housing, especially for Malaysians eligible for the My First Home Scheme. The affordable housing project, which will likely be stratified properties or apartments, will either be built by the government or through joint ventures with the private sector. (Source: Business Times)