Thursday, November 17, 2011

20111117 1015 Malaysia Corporate Related News.

UEM, EPF and govt strike a deal
Toll rates on several expressways will increase by smaller amounts from 2016, once the proposed takeover of PLUS Expressways by UEM Group and the EPF materializes. At the same time, the concession period for several expressways will be extended. This is in broad strokes the conclusion of the negotiations between the Government and UEM and the EPF. The hike in the toll rate for the North South Expressway (NSE), NSE Sentral Link (ELITE), Linkedua and BKE will be reduced and fixed at 5%. (Financial Daily)


The UEM Group and the EPF, which are taking over Plus Expressways, have  agreed on the balanced revised terms of supplementary toll concession  agreements on five expressways operated by PLUS and Penang Bridge Sdn Bhd.  The toll freeze will continue until 2015 and there would be no compensation,  which would otherwise cost the government RM3.6bn. They have also agreed to  waive PLUS’ current outstanding compensation balance totalling RM2.9bn.  There will be no toll hike on four expressways until 2015. The four  expressways are  – North South Expressway (NSE), NSE Central Link,  Malaysia-Singapore Second Crossing (Linkedua), and the  Butterworth-Kulim Expressway (BKE). They said there would also be cuts in toll rate increase. Starting 2016,  toll rate increase on the four expressways will be fixed at 5% every three  years, while the toll rate for Penang Bridge will remain as per current  charges until the end of the concession period. (Edge)

Axiata CEO Jamaluddin Ibrahim said the company does not plan to sell its  stake in  Idea, considering itself a long-term investor. “We believe in the long  run,” he said. “In fact we have raised our stake slightly,” he said, referring to a  0.9% stake buy in August that took Axiata’s total holding to about 20%.  India’s government is in the process of overhauling decade-old telecoms  rules and there is little clarity yet on several contentious issues, leading  to uncertainty among market players. “There are concerns,”  Jamaluddin said. “But we are positive on Idea. We are positive on  India.” (Reuters)  

Proton Holdings Bhd said the company was still producing Satria Neo as a  replacement model for the first generation Satria. Group MD Datuk Seri Syed  Zainal Abidin Syed Mohamed Tahir said Proton was shifting the manufacturing  of the model to its main plant in Shah Alam from Tanjung Malim.  "There is no truth in the report that we are ceasing production at the  Tanjung Malim plant and shifting to Shah Alam. People may  misinterpret that we are stopping production in Tanjung Malim to "kill  the brands produced there"," he said. Syed Zainal was responding to a  news report that Satria Neo was nearing the end of its production cycle. Speaking at a press conference, he said Proton was rearranging its  facilities at the state-of-the-art Tanjung Malim plant in order to bring in  its new model. Meanwhile, Syed Zainal said Proton has decided to  discontinue the sale of its supermini hatchback  Savvy, introduced in  June 2005, as a successor to the Tiara model, and was also phasing out  the Gen.2 model from the domestic market.  "We are shifting the production of Gen.2 and as you know, we are  talking to our partners in China and Iran  to assemble the model there.  We are still in negotiations," he said. (Bernama) 


Management buyout of Proton possible
Proton Holdings Bhd’s MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir has suggested that he and other senior company executives will be keen to buy over the national carmaker if offered. “If we are offered (to bid for Proton), it is worth considering,” Syed Zainal told Business Times via a telephone interview. Speculation is rife that Syed Zainal and Proton chairman Datuk Mohd Nadzmi Mohd Salleh have jointly bid for the company. Syed Zainal, however, dismissed it as “mere speculation” and said that no management buyout (MBO) plan had been submitted to the government. (BT)

Maxis, Measat in broadband tie-up
Telecommunications firm Maxis has entered into an agreement with Measat Broadband International to provide affordable, high-speed satellite broadband connectivity to customers nationwide. In a statement yesterday, Maxis said it had signed an anchor partner of the Measat 5 satellite, formerly known as the IPStar Malaysia. (Financial Daily)

MUI appoints Star’s Ngiam to board
Star Publications Bhd’s former group MD Datin Linda Ngiam has been appointed an independent director of MUI Properties Bhd. Ngiam, 56, is still a non-executive director of Star, where she was group MD and CEO from 1 July 2008 until her retirement on 30 June. (Financial Daily)

Ramunia explains ONGC decision
Ramunia Holdings and its JV partner declined to re-tender for a USD190m (RM602m) contract with India’s Oil and Natural Gas Corp (ONGC) due to the long delay in the issuance of the notice of award. The contract was for the construction of up to 10 wellhead platforms. Ramunia clarified to Bursa yesterday that the Ramunia SEW consortium decided not to participate as ONGC had delayed the notice of award from 2 Sept 2011 to 11 Nov 2011, despite the fact that the consortium was the lowest compliant bidder as declared on 30 Aug, beating 5 other international consortia and 1 disqualified bidder. (Financial Daily)


The government wants to make it a crime for  licensed housing developers  to abandon their projects. A new clause in the Housing Development (Control  and Licensing) (Amendment) Act will enable buyers to initiate criminal  proceedings against developers who abandon housing projects. Under the  amendment, any licensed developer who abandons or causes a housing  development to be abandoned can be fined between RM250,000 and  RM500,000 or jailed up to three years, or both. It also provides for the  developer to refund all money received from a purchaser should the purchaser  terminate the S&P agreement within 30 days. (Sun)

The names of developers shortlisted to undertake the development of the 20  acres of  prime land in Bangsar are expected to be revealed next month.  Permodalan Hartanah Bumiputera, which owns the land, is believed to be still  in the process of shortlisting the candidates based on their project submissions.  The criteria will be based on potential yields, project concept and design and  traffic dispersal system, among others.  It is understood that 30% to 40% of the development ratio will comprise  residential units, and the rest would be office blocks, a hotel, shopping  mall, and shop lots. The plot ratio will be between 6-8x and generate a  GDV of RM4bn-5bn. (Starbiz)  

The sale of plantation land in Malaysia is on the rise, with greenfield reaching  about RM30,000 to RM55,000 per hectare while brownfield is estimated at  RM70,000 to RM90,000 per hectare depending on the age profile at the  acquisition period for young, prime and old oil palm trees, said Tradewinds  Plantation Bhd general manager (advisory services) Ramesh Veloo. He said  there was strong interest in the expansion of  oil palm plantations in Malaysia  and other countries, given the current good prices for crude palm oil (CPO) and  agricultural products.  The economic climate and financial health of plantation companies, too,  had contributed to the pursuit of more suitable land for oil palm  expansion. The capital expenditure and replanting costs for greenfield  were about RM12,500 and RM13,500 per planted hectare respectively,  he said on the second day of the International Palm Oil Conference 2011  (PIPOC 2011) organised by the Malaysian Palm Oil Board (MPOB).  (Starbiz)

AirAsia Indonesia aims to transport about 4m passengers from and to its  Jakarta hub alone in 2012, 33% more than this year’s estimated 3m. The airline  said the integration of its operations at Terminal 3,  Soekarno Hatta  International Airport, will enable guests to seamlessly transfer between  domestic and international flights and vice versa. The terminal, which formerly  housed only Indonesian domestic flights, will officially be open for international  flights from today. (Bernama) 

Berjaya Air, a niche player that offers commercial flights to island destinations,  will reinstate its flights to Pangkor Island today and add Langkawi as its new  destination tomorrow. The airline, owned by Berjaya Land stopped plying the  Subang-Pangkor-Subang route May last year for unknown reasons. For Pangkor  and Langkawi, it is offering return air fares less tax of RM200 and RM260  respectively and will fly three and four times weekly. In june this year it entered into a joint venture with Indonesia’s PT  Lion Air-Mentari, to transform itself into a low cost carrier operating  B737-900Ers and ATR 72-500s. Reports from Indonesia claimed that  the deal had been called off. (Star Biz) 

More than 400 potential retailers are bidding for the 225 commercial lots at the  KLIA2 terminal which is expected to be completed by October 2012. In  presenting the KLIa2 brand value, senior general manager,  Faizah  Khairuddin said MAHB has projected more than RM1.2bn in sales in the first  year alone. We will carry out tenders in two batches with the first starting in the  first week of December and the second to beheld from Feb 15, 2012.  The 225 lots will be divided into 50% for retail, 40% for food and  beverage and 10% for service. The offerings will be in the form of bars  and island cafes, duplex storefronts and duty-free walkthrough, a movie  and sports lounge and a children’s zone.  (Star Biz) 

Encorp Bhd executive chairman Datuk Seri Effendi Norwawi has diversified into  the food business via Flavor Innovation Sdn Bhd. The company yesterday  launched ready-to-serve meal products called myChef to help those who do  not have time to cook. Flavor Innovation CEO Mohd Fairuz Abdullah sees a growing need for  high quality ready-to-serve food in Malaysia. "Our studies revealed  there are 2m households that fit our demography. So, I think that  number is quite large in Malaysia," he said. He is confident that there is  a huge potential for myChef to grow, although the current market size is  small. myChef offers 14 different cuisines, inspired by traditional Malay,  Nyonya, Western and Asian recipes. Claiming to be the first company in  the world to introduce halal low-calorie meals, Flavor Innovation said it  will focus on selling myChef products in the Klang Valley for the first six  months.  Mohd Fairuz said the products will be available outside the Klang Valley  such as in Johor Baru and Penang by next year.  The products will be  exported to Singapore and Brunei by the second quarter of next year,  and West Europe by 2013. myChef products, he said, will cater to medium and upper households,  specifically working mothers.  The company targets to sell around  2.5m packs of myChef products next year, raking sales of around  RM15m. Flavor Innovation will offer most of its products at below  RM10. (BT) 

Tricubes, which manages the 1Malaysia email, announced yesterday it had  secured a contract from  Polis Diraja Malaysia (PDRM) to handle the  payment of and enquiries about traffic summonses, leading to a surge in its  stock price. (Financial Daily) 

Bumi Armada Bhd, a Malaysian offshore oilfield services provider, was added  to the MSCI Malaysia Index, MSCI Inc said in a statement. The changes will be  made at the close of Nov. 30. (Bloomberg) 

Xingquan International Sports Holdings Ltd (Xingquan) has received  total orders of RM333m for its GERTOP brand of shoes, apparels and  accessories at its Spring/Summer 2012 Sales Fair held in Quanzhou, China. In a  statement, Xingquan said the increase in sales order represented a 10.7%  year-on-year growth. Its chairman and chief executive officer Wu Qingquan said  the response from its customers at the sales fair reinforced their confidence in  its GERTOP brand as a well demanded outdoor casual wear brand. (Financial  Daily) 

The  Malaysia Building Society (MBSB) has signed a RM1bn Recourse  Securitisation of Personal Financing Receivables and Conventional Mortgage  Assets agreement with  Cagamas. With this securitisation exercise, the  company is able to strengthen its funding programme, matching the tenure of  its assets to liabilities. (Star Biz)  

No comments: