20110414 1038 Malaysia Corporate Related News.

 KLCI chart reading :
correction range bound upside biased.

Penang gets new RM1bn Japanese investment
Penang received a shot in the arm with a RM1bn investment by Japan's Ibiden Co Ltd, the world's largest printed circuit board (PCB) maker. President and chief executive officer Hiroki Takenaka said the amount would be pumped into its second facility in the Penang science park in Bukit Minyak here. He said the company had already invested RM1.2bn in its first plant in 2008. “As a long-term plan, we decided to expand our operations here in Penang based on our resources and initial investment. “We also appreciate the support given by the Penang state government,” he said after Chief Minister Lim Guan Eng opened Ibiden Electronics (M) Sdn Bhd's first plant and performed the groundbreaking for the second plant yesterday. (StarBiz)

BToto not seeking strategic investor
Berjaya Sports Toto Bhd (BToto) is no longer pursuing a possible corporate exercise which may result in the entry of a strategic investor. In a note to Bursa Malaysia yesterday, the company said it “has and will continue to manage its business and capital diligently with the aim of creating value and enhancing shareholders returns.” It added: “The company is mindful of its obligations pursuant to the Bursa Malaysia Securities Bhd Main Market listing requirements and will make the necessary announcements if one is warranted.” BToto, when contacted, declined to comment on the reason for the sudden change in decision. “We have issued an announcement and BToto has no further comments other than what has been announced,” said a company spokesperson. (StarBiz)

High fuel prices to impact MAS 1Q earnings
Malaysian Airline System Bhd’s (MAS) earnings in 1QFY11 ended 31 Mar were impacted by higher fuel prices, managing director and CEO Tengku Datuk Azmil Zaharuddin said. He expects the company’s transformation programme to show results in the long term though. Speaking to the press at the Invest Malaysia 2011 forum yesterday, Tengku Azmil said higher fuel prices were “definitely making a negative impact on us”. He said about 25% of the airline’s jet fuel for 2011 was hedged at USD90 (RM272) per barrel but the price was currently about USD140 per barrel. (Financial Daily)

Alam Maritim gets RM24.24m contracts to supply 2 vessels
Alam Maritim Resources Bhd’s unit has secured RM24.24m in contracts to supply two vessels to an independent oil and gas exploration and production company. Its unit Alam Maritim (M) SB would provide one anchor handling tug supply vessel and one fast multipurpose supply vessel. “The duration of the contracts are for a primary period of six months with two extension options of one month each,” it said. Alam Maritim said the contracts were expected to positively contribute to the earnings and net assets for the financial year ending 2011. (Financial Daily)

Masterskill, Indonesian firm in exchange pact
Masterskill Education Group (MEGB) has entered into a memorandum of understanding with its chief executive officer Datuk Seri Edmund Santhara and Indonesia’s PT Sejahteraya Anugrahjaya Tbk (PTSA) to establish and develop academic exchange and co-operation in teaching and training of Masterskill’s students at the Mayapada Hospital owned by PTSA. The MOU is to enhance clinical competence and compliance and academic requirements and to form the Universitas Masterskill-Mayapada in Indonesia. The JV company with a paid-up of USD10m (RM303m) will be held by Masterskill (30%), PTSA (40%) and Edmund Santhara (30%). (BT)

Khazanah to re-list healthcare arm in divestment “shake-up”
Khazanah Nasional Bhd, the government’s investment holding arm, plans to re-list its healthcare flagship which is set for a rapid regional expansion within the next three years. Integrated Healthcare Holdings, as its consolidated unit is known, may be put up for public listing on either the local bourse of the Singapore stock exchange as part of a divestment programme, according to Khazanah managing director Tan Sri Azman Mokhtar. This year, Khazanah may make divestments valued between RM6bn and RM7bn, excluding PLUS Expressway Bhd’s transaction, while scouting for acquisitions at the same time, Azman said. (Malaysian Reserve)

Government may buy water bonds
Amid strong concerns voiced by water bondholders in the financial sector, the Federal Government is believed to be planning a special purpose vehicle or getting Pengurusan Asset Air Bhd (PAAB) to buy over the bonds for which some are running into an event of default. The Finance Ministry, after receiving urgent feedback from the bondholders that include banks, the Employees Provident Fund and Great Eastern, is likely to use the time tested method of setting up a vehicle like Pengurusan Danaharta Nasional to take over the bonds, sources said. (Danaharta was set up following the 1997 Asian financial crisis to take over ailing assets). Facilities at PAAB are also on standby; PAAB has a coffer of RM40bil, half of which is government guaranteed. After spending RM4bil to buy over water assets in three states, PAAB still has a deep pocket. (StarBiz)

Ramunia’s unit signs MOU
Ramunia Holdings Bhd’s unit, Ramunia Fabricators SB (RFSB), has signed a memorandum of understanding (MoU) with Swe Infrastucture Ltd. In a filing with Bursa Malaysia yesterday, the company said the MoU was to explore possibilities where both parties can collaborate to undertake any business relating to oil and gas, and any other industries in India. (StarBiz)