Friday, October 28, 2011

20111028 1102 Malaysia Corporate Related News.

Maxis  announced its official partnership with KiddyTrack and the launch of  KiddyTrack's first-of-its kind child locator solution. This innovative GPS/GSM  child locator solution is powered by Maxis' Managed Machine-2-Machine (M2M)  technology and leverages on the company's strength as the country's widest 3G  service provider. (Bernama)

Dutaland and  IOI Corp waged a war of words via Bursa Malaysia website  regarding the termination of a proposed acquisition of a large piece of oil palm  plantation land in Sabah that was to cost IOI Corp RM830m.  IOI alleged that Pertama Land failed to maintain the land according to  acceptable agronomic practices. IOI also alleged that there were  discrepancies in the particulars relating to the properties. It also  questioned the “integrity of the title of Pertama Land in relation to one  of the properties.”  Dutaland said Pertama Land had continued to operate and manage the  properties with due diligence and to maintain and cultivate the said  properties and harvest the crops according to good husbandry,  including timely manuring of the land. (Starbiz)

Tenaga Nasional Bhd (TNB) will build a 132kV sub-station and a district  cooling plant for the supply of chilled water and electricity at the new low-cost  carrier terminal, also known as KLIA2, in Sepang, Selangor. The deal, struck with Malaysia Airports Holdings Bhd (MAHB), is  for a build-operate-transfer model for a concession period of up to 20  years. In a Bursa Malaysia filing, TNB said 80% of the KLIA2  generation plant project's cost of RM388m would be funded through  external borrowings while the balance would be via shareholders'  equity. The project is not expected to have any material effect to the EPS, NTA,  gearing and has no effect on the share capital and substantial  shareholders’ shareholding of TNB or MAHB. (Star Biz, BMSB)

Malaysia’s national power producer  Tenaga Nasional Bhd’s RM4.85bn  (US$1.55bn) Islamic sukuk attracted RM23bn worth of subscriptions and was  priced 3.8-4.9 percent, IFR reported. IFR, a unit of Thomson Reuters, said the  AAA-rated sukuk was divided into 16 tranches, and pricing was “at or below the  tight ends of final guidance”. The bonds were issued via Manjung Island Energy,  an special purpose vehicle set up to partially fund the construction of a mew  coal-fired power plant in the Malaysian state of Perak (Reuters).

There is no concrete proposal for the collaborative agreement between Proton and Perodua yet but the two would like to work together, said Proton advisor  Tun Dr Mahathir Mohamad. The former prime minister stressed that the local  car industry is not yet ready for liberalisation although the decision on whether  to liberalise is up to the government. "A lot of countries are not liberalising. It is  not fair yet," he said. "If we open up, they open up and no special conditions are  attached, then it is fine. But today people are using other means to stop others  from coming in," he said, giving the example of costly standards to comply with  in Europe (Bernama).

The  floods in Thailand do not affect the  Malaysia Airlines (MAS) and  AirAsia flights to the land of the white elephants. The spokesperson from both  the airline companies said that so far, there had been no cancellation of flights  to Thailand because of the floods.  They said the reason being that both the  airline companies do not fly to the Don Muang Airport, which is closed since  Tuesday when its landing strip was submerged in flood water. Instead, the MAS  and AirAsia flights used the Suvarnabhumi Airport, which is not affected by the  floods (Bernama).

C.I. Holdings Bhd (CIH) expects to conclude the disposal of its beverage  subsidiary Permanis Sdn Bhd (Permanis) to Japan's Asahi Group Holdings Ltd  (Asahi) within one or two weeks and expects to pay a minimum of RM4 per  share in the form of special dividend to its shareholders.  On July 21, CIH  signed an agreement with Asahi  for the disposal of Permanis for an acquisition  price of RM820m in cash, representing 70m shares.   Group managing director Datuk Johari Abdul Ghani said CIH is now  looking to acquire a company with potential but weak management,  adding that CIH is not in a rush to buy a company. "At this moment, I  think we will distribute a minimum of RM4 to shareholders back so that  will leave about RM200m over. "So with that money we will try (to  acquire a new business), but if we cannot find anything concrete in the  future, we may distribute back to shareholders in the form of capital  repayment or special dividend," he said (Bernama).

Parkson Retail Asia Pte Ltd, a unit of Malaysia’s Parkson Holdings Bhd,  raised S$138.2 m (US$110m) in an IPO in Singapore, two people with  knowledge of the matter said. The company sold 147m shares at S$0.94 a piece,  close to the low end of the S$0.935 to S$1.07 range at which the shares were marketed to investors. It has the option to expand the IPO by 22m shares. The  department store operator has 50 outlets, including one supermarket, across  Malaysia, Vietnam and Indonesia, according to its prospectus. Parkson Retail,  based in Singapore, plans to use proceeds from the IPO to open new stores in  Indonesia, Malaysia, Vietnam and Cambodia. Parkson Retail plans to pay  dividends of between 40% and 50% of its distributable profits, according to the  IPO prospectus. The company posted a S$35.8m profit in the 12 months  through June, up from S$22.4m a year earlier. (Bloomberg)

YTL Communications Sdn Bhd (YTL Comms) is the frontrunner for the  RM1.5b 1Bestarinet project that involves wiring up schools in the country,  sources said. YTL Comms may have edged out 18 other players, including a joint  bid by Telekom Malaysia Bhd (TM) and Time dotCom Bhd (TDC) for the  1Bestarinet tender. The project involves providing Internet access and a virtual  learning (VLM) platform for 9,924 schools in the country from January.  Sources said on Tuesday at about 1pm the YTL Comms' name appeared  as the winner of the contract on the Education Ministry's website but  two hours later the announcement was taken off the website for reasons  unknown.  Some have expressed surprise that YTL was the frontrunner. Said an  industry player: “If indeed they are the winner, it is shocking as they are  an unproven service provider. They also do not have fibre so how are  they going to offer the services?” The industry player also pointed out  that the tender specifications for 1Bestarinet seemed vague and  cautioned that he hoped the project would not suffer the same problems  faced by a similar project in the past called Schoolnet.  Though the Government is looking at RM4.5bn as the absolute sum for  the 15-year contract, those in the know claimed the bids received ranged  from RM2-6bn. At RM4.5bn, it works out to RM1.5bn for every five  years or RM300m for each year. (Star Biz)

The federal government has extended  Faber Group Bhd’s hospital support  services concession for an interim period of six months, starting Friday, Oct 28.  Its unit Faber Medi-Servce Sdn Bhd had received a letter from the Public Private  Partnership Unit of the Prime Minister's Department about the extension of the  contract. Faber said the extension was subject to the prevailing terms and  conditions of the concession or until the signing of a new concession agreement  for the privatisation of services with the Health Ministry, whichever is the  earlier. “The six months interim extension is not to be considered as binding on  the Government of Malaysia,” it said. Faber said more announcements would be  made concerning the privatisation of the services when the negotiations with  the government have concluded (Financial Daily).

Auto parts manufacturer MBM Resources Bhd has made a takeover offer for  Hirotako Holdings Bhd, which makes car safety restraint equipment,  offering 97 per share, which is nine sen above the pre-suspension price of 88  sen. Hirotako said it had received a notice of conditional take-over offer from  AmInvestment Bank Bhd on behalf of MBM Resources. MBM Resources was  offering 97 per share for all the voting shares of 25 sen each in Hirotako and 5.0  sen per warrant. “The board of directors of Hirotako will hold a meeting  tomorrow to deliberate on the offer,” it said. MBM Resources said it had  obtained an irrevocable undertaking from Hiro-Dapat Holdings Sdn Bhd -- the  largest shareholder with 39.948m shares or 22.85%  -- to accept the offer.  Hiro-Dapat is controlled by Hirotako group managing director Datuk Kuan  Peng Ching @ Kuan Peng Soon. MBM Resources said it did not intend to  maintain Hirotako’s listing status (Financial Daily).

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