20110816 1025 Malaysia Corporate Related News.

Green Packet hopes to conclude talks with Telekom Malaysia by end of this year, on the  possibility of offering high-speed broadband services to its customers. "So far,  we have  entered into a memorandum of understanding. Talks are still in early stages, these things  take a while. Hopefully, everything can be firmed up by end of this year," said group  managing director Puan Chan Cheong.

• "There will be an aggressive customer acquisition campaign this year. We will be mainly  focusing on nomadic users, who are also mainly USB dongle users. We hope to  increase our USB dongle user base from 9% of total wireless broadband subscriber  base in 2009, 12% in 2010, about 30% currently, to  40% by end of this year," added  Puan. (BT)   

Malaysia Airports (MAHB) has clarified that the established level of  passenger service  charge (PSC) or airport tax is not linked to the construction cost of the new permanent lowcost carrier terminal (KLIA2) in Sepang.

• The PSC and other aeronautical charges are determined solely by the government,  therefore it is the sole prerogative of the government to reduce, maintain or increase  aeronautical charges which MAHB abides by.  MAHB is not a liberty to revise charges  without the government’s approval. 
• MAHB added that this message was conveyed at a meeting attended by MAHB  managing director Tan Sri Bashir Ahmad, AirAsia X CEO  Azran Osman-Rani, AirAsia  CEO Tan Sri Tony Fernandes and deputy CEO Datuk Kamarudin Meranun more than a  year ago. (Sun Daily)      

Malaysia Airports  (MAHB) is still in talks with  British Airways and  Qantas on the  possibility of both airlines mounting flights to KLIA, a decade after these airlines suspended  flights owing to a lack of network connectivity here.

• Both British Airways and Qantas ceased flights in 2001 and 2000 respectively as it made  more commercial sense to redeploy capacity to Singapore’s Changi Airport where  demand was much better served (Star Biz) 

The  manufacturing sector will spearhead Sarawak's transformation into a knowledgebased economy, characterised by more value-added activities in line with objectives of the  Sarawak Corridor of Renewable Energy (SCORE), says Chief Minister Tan Sri Abdul  Taib Mahmud. (Malaysian Reserve)  

Genting  spent RM108.4m buying back its own shares. Genting bought 10.5m of its own  shares from Aug 5 to Aug 10 at prices between RM9.77 and RM10.60, it said. (Bloomberg)  

Petronas has offered a credit facility to supply oil products to Bangladesh for six months,  the second such facility for the nation after a similar offer from the Philippines, chairman of  the Bangladesh Petroleum Corp (BPC) said. The first month will be interest-free while the  rest of the months will be at a 5.05% rate, the same as was offered by the Philippines  National Oil Company. The government heavily subsidises the BPC, the country's sole oil  importer and distributor, which sells fuel oils to  local market at much lower rates than  import prices. (Reuters)

The listing of Sunway Bhd, the merged entity of Sunway Holdings Bhd and Sunway City  Bhd, will proceed as planned despite recent turbulence in the stock market. The shares of  Sunway Bhd are scheduled to be floated on Bursa Malaysia on August 23 and expected to  have a market capitalisation of over RM3.5bn.

• "We have no intentions to defer the listing," Sunway Bhd's executive director, group  strategy and corporate development Sarena Cheah said.She was responding to a BT question on whether there was a likelihood of a possible postponement of the listing  given the current volatile market conditions. (BT)    

AirAsia Philippines’ first A320 aircraft arrived at the Diosdado Macapagal International  Airport in Clark yesterday. The aircraft is the first among four aircrafts, the second one  slated to arrive later this year and another two will be delivered in 2012.

• Currently, AirAsia Philippines is awaiting official  approval to start flying commercially.  The airline plans to use the first aircraft to fly to Singapore, Macau and Hong Kong, and  the second one to ply routes to Bangkok, Incheon, Kalibo (near Boracay, Philippines)  and Puerto Princesa (Palawan, Philippines).  
• AirAsia Philippines is 60% owned in equal partnership by Filipino entrepreneurs  Marianne Hontiveros, Antonio Cojuangco Jr. and Michael Romero, and 40% owned by  AirAsia Berhad. The airline is headed by its CEO, Marianne Hontiveros. (AirAsia press  release)    

United Plantations (UP) does not believe lower crude palm oil (CPO) prices will increase  demand from main markets like China and India. The planter expects the CPO price to  range from RM2,600-RM3,100 a tonne as demand for vegetable oils at present is still  above domestic production in China and India.

• UP's price outlook is in line with the downtrend in the CPO price since mid-Feb's  RM3,900 a tonne level on expectation of higher domestic production due to ample rain  over the pas few months. (Malaysian Reserve)      

YTL Corp has released the value of a plot of its land in Jalan Bukit Bintang, earmarked for  acquisition for the construction of the Klang Valley MRT project. Independent valuer Raine  & Horne International, Zaki and Partners said the resultant decrease in the estimated  market value for the plot of land measuring 820.5 sft is RM2.05m or RM2,500 psf.

• "This is expected to be compensated by the authorities as determining the compensation  to be awarded, the authorities are bound to take into consideration, inter alia, the market  value based on the principles set out in the Land Acquisition Act 1960," said the valuer.  (Financial Daily)   

Hovid Bhd is proposing to distribute a portion of its shareholding interest in Carotech Bhd  by way of dividend-in-specie to the shareholders of Hovid, on the basis of 25 ordinary  shares each in Carotech for every 100 ordinary shares each held in Hovid. (BT)  

Konsortium Logistics is to  dispose of a 11.76ha piece of land for RM19.8m. The proceeds will be used as working capital as part of its plan to drive growth. The parcel  located off the North-South Highway and near Prai Industrial Estate/Taman Nagasari Prai  was acquired in 1995 for RM17m. The land, which is bring sold to Setia Jutaria, will bring  an estimated gain of RM4.3m.(Financial Daily)  

The  Multimedia Development Corporation (MDeC) and  Media Prima  have inked a  memorandum of understanding to promote creative industry-related initiatives and lending  aspiring entrepreneurs a spring-boarding platform from which to launch and showcase their  products. (Financial Daily)  

DeGem, a company engaged in the manufacturing and trading of gold, jewellery and  diamonds hopes to expand its operations to Saudia Arabia and Thailand, as soon as it  finds a suitable partner. (Financial Daily)    Ranhill has terminated its US$1.2bn (RM3.6bn) housing project in Tajura, Libya as a result  of the force majeure of events in that country. (Financial Daily)

Kulim privatizing Sindora
Sindora and Kulim‟s shares were suspended in the afternoon yesterday pending an announcement, which will see Kulim privatizing Sindora. Kulim currently has a 77.5% stake in Sindora, held via two companies. Pricing details were unavailable, but at Sindora‟s last traded price, the company had a market capitalization of RM254.4m. This means that Kulim will have to fork out RM57.2m for the remaining 22.5% stake. This privatization could mark the start of a new corporate strategy for Kulim and its parent Johor Corp which, in the past, was seen as pushing for an asset divestment strategy (Financial Daily)

Iskandar gets RM95bn pledges
Iskandar Malaysia attracted about RM95bn in committed investments from January to June 2011, according to Iskandar Regional Development Authority (Irda) CEO Ismail Ibrahim. This was more than double the cumulative RM47bn target for the five years up to 2010. From 2011 to 2015, Iskandar Malaysia is targeted to achieve RM73bn in investments. Ismail added that more investments are coming to Iskandar. Irda spent about RM339m in the first half of the year and RM214m would be disbursed in the second half, bringing total spending to RM553m. (StarBiz)

Ranhill ends RM3.6bn Libyan housing project
Ranhill will terminate a USD1.2bn (RM3.6bn) housing project in Libya as a result of the civil war in the country. The company has served a notice of termination to the Housing Infrastructure Board of Libya to terminate the general works contract for the design, build and handover of 10,680 housing units in Tajura as a result of the force majeure events currently being faced in the country. Ranhill has evacuated its workforce out of Libya and suspended work on the project in February 2011. It has not been able to access the site and resume work for almost six months. Ranhill was unable to determine the financial impact of the termination with certainty. (Malaysian Reserve)

Dijaya buys 92 ha in Johor for mixed development
Dijaya bought 92ha of land in Plentong, Johor Baru, for RM220m, which it intends to use for a mixed development township with an estimated GDV of RM2.8bn. The 92ha freehold land was acquired by Magical Heights SB, a joint venture between Dijaya's subsidiary Accroway SB and Iskandar Waterfront SB (IWSB). The Johor state government thus has an interest in the transaction as Kumpulan Prasarana Rakyat Johor owns a substantial stake in IWSB. (BT)

Parkson: Hires HSBC for Singapore listing. Parkson Holdings is spinning its retail operations in Malaysia, Indonesia, Vietnam and Cambodia in a separate listing in Singapore soon. HSBC has been hired to apply for the corporate exercise and the Singapore's listing. (Source: The Sun)