20110422 0959 Malaysia Corporate Related News.

KLCI chart reading :
side way range bound little upside biased. 

Tenaga 2Q earnings down 37% to RM630m, sees challenging year
Tenaga Nasional (TNB)’s earnings fell 36.9% to RM630.30m in the second quarter ended 28 Feb 2011 from RM1bn a year ago as it was impacted by higher coal prices. Forecasting the current financial to be challenging, TNB said yesterday that its revenue was a marginal 1.5% higher at RM7.503bn from RM7.389bn a year ago. Its earnings per share were 14.2 sen compared with 23.05 sen while it declared a lower dividend of 4.5 sen per share. The power giant said the improvement was mainly from sales of electricity in Peninsular Malaysia and Sabah Electricity SB (SESB), which recorded an increase of 2.4% and 5.2% respectively. The units also registered a growth of 2.0% in the peninsula and 4.7% in SESB on-year. (Financial Daily)

Carlyle, TPG eye joint bid for RHB Cap stake
Carlyle Group and TPG Capital are in early talks to launch a joint bid for a USD1.5bn (RM4.5bn) stake in Malaysian lender RHB Capital, three sources with direct knowledge of the matter said. Abu Dhabi Commercial Bank owns the stake and has hired Goldman Sachs and Bank of America-Merrill Lynch to run the auction. Carlyle and TPG have engaged an investment bank to advise them on the potential offer, said the sources. (BT)

JTI to consider paying special dividend
Tobacco major JT International Bhd (JTI) will consider paying a special dividend this year, according to chairman Datuk Seri Mohd Nadzmi Mohd Salleh. “We are looking into various business opportunities. If we do not need the money, we will consider that (paying a special dividend),” he said after the company AGM. Nadzmi, however, did not elaborate on the business that JTI was eyeing. “We are exploring which business to invest in but we can't disclose details yet.” As at 31 Dec 2010 (FY10), JTI has a cash and cash equivalents of RM189.2m. For the full year, JTI posted a net profit of RM133.8m on revenue of RM1.2bn. In FY10, JTI maintained its gross dividend payout of 30 sen per share less 25% tax, representing a dividend yield of 5%. (StarBiz) 

RM7.2bn helicopter deals inked
Two local helicopter service providers have won deals worth RM7.2bn from oil firms in Malaysia and one is already planning to use this as a stepping stone for regional expansion. Privately-held Weststar Aviation Services SB is keen to become a bigger player in Southeast Asia and it may raise money from an initial public offering. "There is a great potential for Weststar's growth in the oil and gas sector and we fully intend to expand," group managing director Tan Sri Syed Azman Syed Ibrahim told reporters at a briefing. In fact, it has been invited to bid for services in Thailand and Myanmar. Weststar Aviation will provide nine helicopters in a deal worth RM4.2bn to Petronas Carigali Sdn SB, ExxonMobil Exploration and Production Malaysia Inc, Newfield (Malaysia) Incorporated, Petrofac (Malaysia-PM304) Ltd and Talisman (Malaysia) Ltd. Syed Azman said the tender had called for 14 helicopters and Weststar had allocated RM1.5bn to fund the project. (BT)

China Stationery gets SC nod for listing on Bursa
The RM1.1bn China-based company that has been approved to list by the Securities Commission (SC) is China Stationery Ltd from Putian, Fujian Province, according to reliable sources. This listing is significantly bigger than the other China companies listed in Malaysia, the largest so far being Sozo Global Ltd, which had a market capitalisation of RM388.44m as of yesterday, according to Bloomberg. China Stationery said in March that it was approved to list on Bursa Malaysia's Main Market but it did not provide details of its size. In yesterday's first quarter scorecard, the SC said it had approved the listing of a China-based company with a potential market capitalisation of RM1.1bn. China Stationery is scheduled to list by the second quarter. (StarBiz)

Jerneh Asia eyes Sabah developer
After hiving off its core insurance business in Malaysia, cash-rich Jerneh Asia has now set its sights on acquiring Sabah-based property developer Sagajuta Sabah SB, whose flagship project is the massive 1 Borneo mixed development in Kota Kinabalu. Jerneh Asia announced to Bursa Malaysia yesterday that it had signed a memorandum of understanding (MoU) with Sagajuta’s 60% shareholder, Generasi Cipta SB, to start exclusive discussions for the proposed acquisition. If the talks bear fruit, it will be a backdoor listing of Generasi Cipta, whose main assets include the 1 Borneo project that has a gross development value of RM1.2bn, encompassing a 1.5m sq ft shopping mall, four hotels and four condominium towers. (Financial Daily) 

Nestle upbeat on 2011 performance, double digit growth
Nestle (M) is projecting a positive trend for the company in 2011 based on strong sales both domestic and international. The company on Wednesday announced a turnover of RM1.2bn for its 1Q ended 31 March, 2011, representing a 16.1% growth compared to the corresponding period of 2010. At a press conference, its managing director Peter R Vogt said Nestle’s results was proof that the company had continued to do well despite the higher prices of commodities. Export sales showed a double digit increase, sustaining the strong performance achieved last year, he said. For 2010, Nestle posted a turnover of RM4bn, 7.5% higher than the year before, while PBT stood at RM456.7m, a 5.8% increase versus the previous year, driven by positive developments in the local and global economies. (Malaysian Reserve)

BAT profit hit by excise hike
British American Tobacco (M) Bhd's (BAT) net profit dropped 6.95% to RM178.55m for the first quarter ended 31 March compared with the same quarter a year ago. Sales volume declined by 7.5% in the quarter under review resulting from the steep excise increase last October. In comparison, industry volumes among the Confederation of Malaysian Tobacco Manufacturers' members declined dramatically by 9% for the first quarter of 2011 compared with the same period last year. The significant decrease in industry volumes was a result of higher prices on the back of a steep 16% increase in excise duty in October and illegal sale of locally produced products, BAT said in an announcement. The company told Bursa Malaysia yesterday that revenue declined 2.61% to RM992.14m as a result of lower volumes and unfavourable pack-size mix (due to a ban on packs less than 20 sticks). However, this was partially offset by higher excise and subsequently pricing. “Net turnover (revenue less Government levies) declined more than revenue, reducing by 9.2% as the industry took a smaller portion of the price increase,” the company said. BAT said profit from operations only declined by 6.7%. (StarBiz)

IPO: Quake delays IPO of world's largest syariah REIT. The listing of Malaysia's Axis Global Industrial real estate investment trust (REIT), has been pushed back by about a month after 2 of its Japanese assets were damaged by the March earthquake. The 2 assets have been removed from its initial asset composition and the size of the REIT has been slightly reduced. (Source: The Edge Daily)

Oil & Gas: Petronas signs unitization agreement with Malaysia-Thailand Joint Authority for the gas field straddling across Block PM 301 in the northeast coast of Peninsular Malaysia and Block A-18 in the Malaysia-Thailand Joint Development Area. The unitisation agreement gives Petronas rights to the reserves in the unitised area, which has an estimated ultimate recovery of 1.25t standard cubic feet of gas. (Source: The Edge)

Transocean: BP sues for $40b over oil spill in Gulf of Mexico. BP Plc sued Transocean, seeking at least $40b (RM120.3b) in damages and other costs from the owner of the Deepwater Horizon rig. BP said on 20 April 2010, every single safety system and device and well control procedure on the Deepwater Horizon failed, resulting in the casualty. (Source: The Sun)