20110415 1000 Malaysia Corporate Related News.

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YTL may buy back subsidiaries
YTL Corp is on an acquisition trail which could see it buying back its own subsidiaries, if no other attractive opportunities emerge. Managing director Tan Sri Francis Yeoh said its current balance sheet position and promise of higher dividends from its subsidiaries has put it in a position to be able to look at mergers and acquisitions efficiently. He expects subsidiaries such as YTL Power International and YTL Cement to announce some RM1bn dividends to its parent for the financial year ending 30 June, 2011. YTL Land & Development is expected to start paying dividends next year after wiping out its losses. (BT)

MAS to spend RM7.3bn on fleet renewal in next 4 years National carrier Malaysia Airlines (MAS) is expected to fork out some USD2.4bn (RM7.3bn) over the next four years for the purchase of 15 new A330-300 airplanes, in line with its fleet renewal exercise as well as its effort to trim down operational cost. With a list price of USD16m per aircraft, managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin said the new and improved A330-300 is expected to reduce fuel consumption and lower its operational costs by 15% through efficient management of fuel consumption and maintenance programmes, incorporating Airbus’ latest technology and design.(Malaysian Reserve)

SP Setia plans residential apartments in Singapore, GDV SGD130m
SP Setia plans to undertake a multi-storey residential apartment building at Woodsville Close in Singapore with an estimated gross development value of SGD130m. The company said on Thursday, 14 April its subsidiary SP Setia International (S) Pte Ltd had signed a sale and purchase agreement with 27 strata units’ subsidiary proprietors at Leong Bee Court. The acquisition would include the strata units and common property on a 0.68 acre site for SGD65m or RM159m. “The land is square shaped with a flat terrain which makes re-development potential very attractive. The purchaser proposes to undertake a re-development of the said land into a multistorey residential apartment building. Based on the preliminary feasibility study and subject to the approvals of the relevant authorities, the proposed project is expected to have an estimated GDV of approximately SGD130m or approximately RM318m,” it said. (Financial Daily)

Khazanah to build companies to list, boost jobs
Khazanah National aims to build new businesses and list them within five years to accelerate job creation and economic growth. Khazanah, which manages a RM75bn (USD25bn) portfolio and holds the biggest stakes in four of the nation’s 12 largest publicly traded companies by sales, also invests in resorts and hospitals. The sovereign wealth fund didn’t say which of the new companies will be listed. “We need to create jobs, we need to create new economic activity, those are the kind of roles which the larger part of the market don’t see,” managing director Tan Sri Azman Mokhtar said in an interview in Kuala Lumpur. “Our ambition is that these companies must be done and validated by the market, and eventually may be in three, maybe five years, ready for listing.” Khazanah is building new companies as Malaysia boosts investments after the economy expanded 7.2% last year, the most in a decade. (StarBiz)

IPO-bound Boilermech sees hot annual revenue growth
Boilermech Holdings, en route for Bursa Malaysia’s ACE Market listing in May, aims to sustain an annual revenue growth of between 15% and 20%, based on the projected growth of palm oil production in Indonesia and Malaysia. Its executive director Chia Lik Khai said based on studies conducted, the projected 8% to 10% annual growth in palm oil production is expected to contribute positively to the company’s earnings. Boilermech is primarily involved in design, manufacturing, installation and commissioning of biomass boilers and also undertakes biomass boilers repair and refurbishment services. (Malaysian Reserve)

Water bondholders expect full payments if Govt buys back bonds
Water bondholders are not accepting any haircut in the potential Government buyback of the financially-troubled bonds, according to sources. Against the point that bondholders had, in the first place, undertaken a risky investment that had not performed, the counter argument is that bondholders had played their part in the privatisation and socio-economic development of the country. Hence, the subtle message might be that they expected the Federal Government to honour the payments in full, especially if they were to continue to support further privatisation projects, analysts said. If Pengurusan Aset Air (PAAB), the Government's water asset management company with large coffers, stepped in to buy over the bonds, there might not be a need for a haircut, they added. A haircut occurs if the face value of the bonds decreases. So far, the outstanding water bonds that are rated, excluding the ones issued by PAAB, amount to RM6.7bn out of the total issued of RM9.02bn. (StarBiz)

SEGi sees 4% increase in earnings in JV with Korean university
SEG International is teaming up with Chung Cheong University in South Korea to train and place nurses and allied health professionals in the US, Canada and Europe. SEGi said on Thursday, 14 April the academic collaboration was expected to contribute an increase in earnings of approximately 4% to the group for FY ending 31 Dec, 2011. It said the collaboration was also expected to contribute positively to the earnings and net assets of the group for the future years. (Financial Daily)

MSM plans takeovers, investments in region
MSM Malaysia Holdings, the main board-bound listing vehicle of Felda Global Ventures Holdings SB (FGVH), plans to pursue strategic acquisitions and investments, particularly in South-East Asia. The move would be part of the company's effort to expand existing production and diversification outside Malaysia, according to a draft prospectus posted on the Securities Commission website. MSM is the country's leading sugar producer with annual production capacity of 1.1m tonnes of refined sugar via subsidiaries Malayan Sugar Manufacturing Co in Prai and Kilang Gula Felda Perlis SB (KGFP) in Chuping, Perlis. Currently, MSM controls about 57% of the total sugar production in Malaysia. (StarBiz)