20110411 1225 Malaysia Corporate Related News.

KLCI chart reading :
correction range bound upside biased.

Private equity eyes Notion again?
Market talk of possible corporate exercises has resurfaced at Notion VTec. Rumours include the potential entry of a major US-based private equity firm into the company and Nikon Corp, a current strategic shareholder in Notion, considering upping its stake in the hard disk drive (HDD) components and camera parts manufacturer. A source said talk of a private equity firm’s entry was not new, but Notion’s board was believed to have been negotiating for a higher price before it would table any proposal to shareholders. He told The Edge Financial Daily that the private equity firm was valuing Notion at about 1.7 times book. Notion’s net tangible assets (NTA) per share stood at RM1.55 per share as at 31 Dec 2010. (Financial Daily)

MAHB ‘serious’ on more overseas ventures
Malaysia Airports Holdings (MAHB) is “seriously” on the lookout to build and manage overseas airports in line with its aspiration to become a global leader in airport investment and management. In its financial year ended 31 Dec 2010 annual report released last week, MAHB chairman Tan Sri Aris Othman said the group was seriously looking at new, yet viable opportunities globally, particularly in Asia.( Financial Daily)

Khazanah eyes more of Apollo
Khazanah Nasional may raise its stake in India's largest hospital chain, Apollo Hospitals, as it seeks to benefit from the country's growing healthcare market. The state investment arm holds some 12.1% of Apollo, which is close to the general offer trigger of 15%. This means that once it has 15%, it must buy another 20% under Indian takeover rules. "All I can say is, watch this space," said a Khazanah spokesperson. Khazanah will soon make some RM1.32bn from the sale of a 12% block in Integrated Healthcare Holdings SB (IHH), its healthcare holding company, to Japan's Mitsui & Co Ltd. Mitsui is also buying another 18% of IHH in a new share sale for some RM1.98bn. The two deals would bring its total stake to 30%. (Business Times)

ABASS offered RM82.5m in loan for refinancing
Perangsang Selangor (KPS) last Friday announced that its 55% subsidiary Konsortium Abass SB (ABASS) had recently received a letter of offer from financial institutions for a syndicate term loan facility of up to RM82.5m. The loan would be to partly refinance its existing borrowings under its proposed refinancing exercise. (Malaysian Reserve)

IOI Corp invests SGD114.77m in JV for Singapore property development
IOI Corp is investing SGD114.77m in a Singapore property company which will develop premium office space, luxury hotel, high-end retail outlets and prestigious city residences along Beach Road in the island republic. IOI Corp said on Friday, 8 April the land, measuring 376,295 sq ft (8.64 acres), had a leasehold tenure of 99 years. IOI Corp said the investment would be via its unit, IOI Consolidated (Singapore) Pte Ltd, which had subscribed for a 49% stake in Singapore’s Scottsdale Properties Pte Ltd for cash consideration of SGD114.77m. (Financial Daily)

Parkson ventures into Indonesia
Parkson Holding’s unit East Creat International Ltd (ECI) has entered into a conditional joint-venture agreement with PT Mitra Samaya and Parkson Retail Asia Pte Ltd (Parkson Asia) to combine its Malaysian and Vietnam retail business with the Indonesian retail business of PT Tozy Bintang Sentosa (TBS). Parkson Asia is a wholly owned subsidiary of ECI. Parkson said on Friday, 8 April that collaboration involved the acquisition of the entire 100% shareholding of PT Tozy Sentosa, a unit of TBS by Parkson Asia for USD13m. Upon completion of the acquisition, Mitra Samaya will subscribe for shares in and become a 9.9% shareholder in Parkson Asia. The collaboration also involves the injection of Parkson Corporation Sdn Bhd by ECI into Parkson Asia, it said. Parkson said the financing for the collaboration would be sourced from internally generated funds. (Financial Daily)

Mamee shareholders propose to privatise company
Major shareholders of Mamee-Double Decker (M) Bhd have proposed to privatise the company from Bursa Malaysia by undergoing a capital reduction and repayment exercise under Section 64 of the Companies Act, 1965. Under the plan, major shareholders of Mamee who control the company would repay RM179.8m or RM4.39 a share to minority shareholders. The controlling shareholders would waive their entitlement from receiving cash under the capital reduction and repayment exercise. Shares of Mamee are suspended but last traded at RM3.60 a share. The company said in a statement to Bursa Malaysia the proposal for the exercise was from Tanah Subor SB, which represented the controlling shareholders of the company having 71.9% of the company's shares. (StarBiz)

Bank Islam buys 20% stake in Sri Lanka bank
Bank Islam Malaysia Bhd is now the single largest shareholder in Sri Lanka-based Amana Bank Ltd after completing its share-subscription exercise that gives the group a 20% stake in bank. “The 20% stake is acquired via a share swap of Bank Islam's existing shareholdings in Amana Investment Ltd for Amana Bank's shares and the subscription of the bank's new shares for a total consideration of about RM21.26m,” he told reporters at the completion of share subscription and technical advisory services agreement (TASA) signing between the group and Amana Bank. Zukri said the business venture was Bank Islam's maiden overseas banking venture in line with its regional expansion plan. (StarBiz)