20110404 1056 Malaysia Corporate Related News.

KLCI chart reading :
upside biased with potential pullback.

TNB unit signs deal for Manjung plant
Tenaga Nasional unit TNB Janamanjung (TNBJ) has signed an engineering, procurement and construction agreement with a consortium led by Alstom Power System SA for the multi-billion-ringgit 1,000 MW Manjung coal-fired power plant project. It told Bursa Malaysia that the agreement was between TNBJ and the consortium which comprised of Alstom Power System SA, Alstom (Wuhan) Engineering & Technology Co Ltd, Alstom Services, China National Machinery Import & Export Corp and CMC Machipex. It said the consortium would be responsible for the design, supply, installation, testing and commissioning of the power plant. (StarBiz)

Europlus gets letter for highway job
Kumpulan Europlus subsidiary West Coast Expressway has received a letter yesterday from the Public Private Partnership Unit of the Prime Minister’s Department, approving in principle the proposed construction of West- Coast Expressway (Taiping-Banting). The project is to be privatized on a build-operate-transfer basis, and is subject to further negotiation on technical and financial terms and conditions. They expect negotiations to be completed within six months from the date of the letter. (StarBiz)

Compensation issue for KLIFD
The wheels have been set in motion for 1Malaysia Development Bhd’s (1MDB) Kuala Lumpur International Financial District (KLIFD) project, along Jalan Tun Razak, to start although compensation issues that have yet to be ironed out may throw a small spanner in the works. Documents for pre-qualification tenders under KLFID’s masterplan, which is being finalized by 1MDB, were released last Wednesday. However, traders operating in Pasarakyat, which occupies a piece of land acquired by 1MDB for the KLIFD project, have refused to move until they have been compensated. It is learnt that a meeting between the representatives from the traders,1MDB, a minister from the Prime Minister’s Department and Bukit Bintang Member of Parliament Fong Kui Loon was scheduled to take place last Thursday, but has been rescheduled to another date that is yet to be determined. (Financial Daily)

Sunway Construction unit wins RM22m contract
A unit of Sunway Construction, the construction arm of Sunway Holdings, has been awarded a RM22.57m contract from Perumahan SLG Sentral, a subsidiary of Singapore’s Sim Lian Group Ltd. The letter of award is for the piling work for the proposed development of three blocks of commercial buildings, located in Jalan Tun Razak, KL, said Sunway Holdings. The proposed project is to be completed by 30 Sep 2011, with a construction period of six months. (Malaysian Reserve)

Felda Global plans sweet IPO
Felda Global Ventures Holdings Sdn Bhd, the commercial arm of the Federal Land Development Authority, plans to list some of its businesses starting with its sugar operations this year. The IPO of wholly-owned Malayan Sugar Manufacturing may raise more than RM1bn, sources said. This could also make it one of the biggest IPOs for the year. CIMB and Maybank Investment Bank are expected to be in the running to arrange these IPOs. The IPOs will help Felda Global to fund its expansion. Although its financial numbers could not be obtained, the figures for its unit, Felda Holdings Bhd, give an idea of the group's immense size. Felda Holdings' pre-tax profits have more than doubled to RM804.3m in 2009 from 2005 while revenue has jumped by almost two-thirds to RM11.8bn in the same period, according to its website. Felda Global is the world's biggest plantation group by land, producing mainly palm oil, followed by rubber and cocoa. It is also the country's biggest palm oil refiner and controls some 70% of Malaysia's sugar market. (BT)

YTL Power: Japanese partner to bid for RM9b Java project. YTL Power International Bhd has teamed up with a Japanese consortium to bid for a 2,000MW coal-fired power plant project in Central Java worth USD3b (RM9b). YTL Power and its Japanese partner have agreed to a 20:80 debt equity ratio, with the Japanese consortium assuming the larger portion of the risk. (Source: The Malaysian Reserve)

Kenanga-ECM Libra: Merger in the works? ECM Libra Financial Group and K&N Kenanga Holdings Bhd are believed to be exploring a potential merger with a possibility of ECM's shareholders selling out to Kenanga. (Source: The Edge Financial Daily)

Boustead: Eyeing majority stake in Esso M'sia with LTAT. Boustead Holdings Bhd and its parent company Lembaga Tabung Angkatan Tentera (LTAT) are believed to be eyeing Exxonmobil International Holdings Inc's 65% stake in Esso Malaysia. (Source: The Edge Financial Daily)

Plantation: World Bank lifts palm oil moratorium. The World Bank last Friday lifted an 18-month global moratorium on lending for new palm oil investments, endorsing a strategy that focuses on supporting small farmers that dominate the sector. (Source: Business Times)

Construction: Three foreign players in race for Pudu Jail redevelopment. Three foreign players are among the 10 companies shortlisted by the master developer, UDA Holdings Bhd for the redevelopment project of the Pudu Jail site. The companies are Dubai-based Damac Group teaming up with UEM Land, state-owned China State Construction Engineering Corp that has tied up with Kumpulan Jetson Bhd and Keppel Land Ltd. (Source: The Edge Financial Daily)