20110726 1030 Malaysia Corporate Related News.

KNM, Zecon in RM17bn petroleum complex deal
KNM Group and Zecon signed preliminary deals worth RM17bn in total with Gulf Asian Petroleum SB (GAP) to build an integrated petro-chemical complex in Teluk Ramunia, Johor. In a Bursa Malaysia filing yesterday, KNM said that the engineering, procurement, construction and commissioning contracts were for a 150,000/200,000 barrels per day petroleum refinery and 400,000/525,000m tonnes per annum polypropylene unit with a total project value of USD5bn (RM15bn) and also, a RM2bn petroleum storage terminal facility comprising four terminals with a total storage capacity of 2.328m cu m. (Starbiz)

Perwaja to raise RM280m for working capital
Perwaja Holdings is proposing to raise funds for its working capital through a proposed restricted issue of RM280m nominal value 7-year 7% redeemable convertible unsecured loan stocks (RCULS) to Kinsteel at 100% of its nominal value. The conversion price for the RCULS, which is expected to be listed on Bursa, has been fixed at RM1.00 for every one new Perwaja share. Perwaja is also proposing to issue 280m free warrants on the basis of one free warrant for every two existing shares held in Perwaja on an entitlement date to be determined and announced later. The exercise price of the warrant has been fixed at RM1.00 each and they also will be listed on Bursa, said Perwaja. (Bernama)

AirAsia HQ stays in Malaysia
AirAsia headquarters will remain rooted in Malaysia although a representative office will be set up in Jakarta to drive the Asean integration agenda. “Nothing changes. AirAsia's head office is in Malaysia and our listing is on Bursa Malaysia,'' AirAsia group chief executive officer Tan Sri Tony Fernandes said in an SMS from London yesterday. He said the office in Jakarta was “just a regional office to build relationships with the Asean Secretariat (which is also) located in Jakarta (and) to work towards a one Asean sky and aviation authority like Europe's joint aviation authority.'' (StarBiz)

SP Setia to acquire 40% of KL Eco City for RM75m
Property developer SP Setia has proposed to acquire 40% equity interest in KL Eco City SB (KLEC) from Yayasan Gerakbakti Kebangsaan for RM75m. The acquisition will be through the issuance of 19,379,845 new ordinary shares of RM0.75 each in SP Setia at an issue price of RM3.87 per share, SP Setia said in a filing to Bursa Malaysia. The KLEC project is an integrated commercial and residential development. (Bernama)

Petronas unit, Qatargas sign LNG agreement
Petronas LNG Ltd has signed a heads of agreement (HOA) with Qatargas for the latter to supply liquefied natural gas (LNG) to Malaysia for 20 years. Petronas LNG Ltd (formerly known as Asean LNG Trading Company) is a wholly-owned subsidiary of Petroliam Nasional (Petronas). Under the agreement, Qatargas will deliver 1.5m tonnes per year LNG to Malaysia for a period of at least 20 years beginning in 2013. This is equivalent to about 5% of Malaysia’s current annual average domestic natural gas demand, which is growing at a rate of around 6% per annum. (StarBiz)

Daya bags contracts worth RM27.6m
Daya Materials has bagged two contracts valued at EUR6.47m or RM27.6m of supply and delivery agreements with Petronas Methanol (Labuan) SB. The contracts were won via competitive bidding through its wholly-owned subsidiary Daya Secadyme SB. The two agreements are to supply methanol synthesis catalyst and desulphurisation catalyst to Petronas Methanol. The methanol synthesis catalyst will be delivered by November 2011 and the desulphurisation catalyst by September 2011. (StarBiz)