20110408 0949 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

MAS: Gets cracking on B737 checks after Boeing alert. Malaysia Airlines (MAS) has started carrying out comprehensive inspections on all of its 737s aircraft following an alert by US-based aircraft maker Boeing Co of the possibility for the older model to have developed cracks earlier than expected. The concern came about following an incident involving a Southwest Airlines Co plane that split open last week, subsequently forcing the airline to ground 79 planes from service. (Source: Malaysia Reserve)

Construction: Works on MRT to start at between Nov and Dec. The Land Public Transport Commission (SPAD) announced that the project tenders for the MRT project would only be opened in July until August and actual work would start between November and December this year. The ground-breaking for tunnelling and station projects at Semantan, Cochrane and Sungai Buloh will be on July 8. (Source: New Straits Times)

Mitsui buys 30% in Integrated Healthcare
Mitsui & Co Ltd is set to emerge as a 30% shareholder in Integrated Healthcare Holdings in a RM3.3bn deal, the largest ever by a Japanese investor in Southeast Asia's healthcare sector. Integrated Healthcare Holdings (IHH), which had been fully-owned by state investment firm Khazanah Nasional, is the owner of a several strong healthcare brands in the region. It owns all of Singapore's Parkway Holdings - the biggest hospital operator in the region which it bought for USD3.5bn (RM8.4bn) last year - and Malaysia's Pantai Holdings, International Medical University and 8.8% of India's Apollo Hospitals. Mitsui, Japan's second largest trading house, is to buy a 12% stake from Khazanah for RM1.32bn and will take up another 18% by subscribing to new shares in IHH for RM1.98bn.The combined investment would be the largest merger and acquisition transaction done so far this year in Malaysia. The deal, seen to be "complementary" to both the Malaysian and Japanese parties, is expected to be completed in "a few weeks" once regulatory approval is obtained, Khazanah managing director Tan Sri Azman Mokhtar told reporters. (BT)

Lion Corp to defer debt repayment
Lion Corp is seeking the approval of some lenders to defer the repayment and redemption of several of its debts. The company told Bursa Malaysia yesterday that it had issued noticed of meetings dated 6 April this year to holders of the bond, US dollar debts and redeemable convertible secured loan stocks, all issued by Lion Corp to seek the approval of the relevant lenders for the deferment from 30 April to 31 July this year. The meeting of the lenders will be held on 26 April (StarBiz)

SPAD says the MRT will be completed on schedule
The mass rapid (MRT) system’s project delivery partner (PDP) should step in and complete any works in the MRT project if the awarded contractors fell behind schedule, said Land Public Transport Commission (SPAD) CEO Mohd Nur Kamal. “Syarikat Prasarana Negara (SPNB), the PDP and the work package contractors would sign a tripartite agreement to ensure that the MRT project development would be carried out according to the target cost and stipulated time frame. This is why we need experienced contractors to be the PDP so that it can step in and finish the job within the target cost and time in case the work package contractors fail to do so. The PDP will be compensated accordingly as per the agreement for the work package contractors,” he mentioned during the first weekly briefing session on the development of the MRT project. (StarBiz)

HK 'Superman' Ka-shing ahead in malls bid
The Cheung Kong Group, owned by Hong Kong tycoon Li Ka-shing, has emerged as the frontrunner to buy three shopping complexes put up for sale by TMW Asia Property Fund. Cheung Kong, which also helps manage AmFirst REIT in Malaysia via its affiliate ARA, is said to be going through the books of Ipoh Parade in Perak, Klang Parade in Selangor and Seremban Parade in Negri Sembilan. Sources told Business Times that Cheong Kong was selected after its offer thumped those made by two other listed companies. However, it is unclear if Cheung Kong (Holdings) Ltd made the bid directly or through one of the funds affiliated to it. Li’s Cheung Kong conglomerate is one of Hong Kong's biggest property developers and owns the world's largest operator of container ports, among others. Seremban Parade has a nett lettable area of 316,847 sq ft and sits on 1.97ha, Ipoh Parade has a nett lettable area of 594,414 sq ft on 4.14ha and Klang Parade has 696,045 sq ft of space. (BT)

Japanese disaster jolts Perodua
Perusahaan Otomobil Kedua Sdn Bhd (Perodua) says its operations are affected by the recent earthquake and tsunami in Japan. In a statement yesterday, the country's largest car company by sales, said it is assessing the situation to better understand the impact of the natural disasters on its operations. It added that inventories at its plant as well as those of its vendors are enough to cover production until May, with some adjustments. "We are in direct and continued communication with our partner in Japan, Daihatsu Motor Co Ltd, as well as our local vendors to have a better and clearer picture of the problems and appropriate counter measures to be taken," Perodua managing director Datuk Aminar Rashid Salleh said. (BT)

Nippon Steel may raise stake in Tatt Giap unit
Nippon Steel Corp, the world’s fourth largest steelmaker, says it intends to raise its stake in Tatt Giap Group Bhd subsidiary Nippon EGalv Steel Sdn Bhd, which manufactures electro-galvanised steel. Nippon Steel planned to increase its stake in Nippon EGalv to 50.1% from 10% for USD6.5m (RM19.7m) by end-June. Nippon Steel was quoted to say that it planned to make Nippon EGalv its subsidiary to boost the supply of electro-galvanised steel sheet to Japanese electronics makers in Malaysia, given that its South Korean rival, the Pohang Iron and Steel Company (POSCO) was also tapping into the market. Nippon Steel revealed that it would start producing 100,000 tonnes of fingerprint-free electro-galvanised steel sheet annually, to be used in flat-screen TV and audio products manufacturing in Malaysia. (Financial Daily)

MRCB to acquire property firm
Malaysian Resources Corp Bhd (MRCB) has proposed to acquire the entire stake in 59iNC for RM110m cash, which effectively enables the group to own 27.4 acres (10.96ha) of land in Setapak, KL. MRCB told Bursa Malaysia that the land would be developed from 2012 over a period of eight years into a mixed development with an estimated gross development value of about RM1.5bn, and expected profits of RM300m. MRCB entered into a share sale agreement with Fadzil Ahmad, Usman Suratman and Mohd Shamir Mohd Hassan to acquire 200,000 shares of RM1 each in 59iNC for RM110m cash.(Financial Daily)