20120130 1029 Malaysia Corporate Related News.

IJM Corp, Ahmad Zaki Resources: Awaiting letter of award for MRT project Both IJM Corp and Ahmad Zaki Resources (AZRB) have said they are awaiting a formal letter  of award (LoA) for 2 elevated packages of the MRT Sungai Buloh-Kajang line. IJM Corp said its  subsidiary IJM Construction Sdn Bhd it would make an announcement upon receipt of the  LoA. AZRB made a similar disclosure to the stock exchange. The announcements were made  in response to a statement from MRT Corp on Thursday that IJM Corp and AZRB had been  appointed the main contractors for package V5 and package V6 respectively of the MRT  construction works. However, the awards are subject to the successful tenderers accepting  the letter of award. This had led to some concern as to whether IJM Corp and AZRB had in  fact won the MRT contracts. (Starbiz)

Petronas Dagangan: Boosts efforts to remain main cooking gas supplier Petronas Dagangan, the principal marketing arm of  Petronas is intensifying its efforts to  remain the main supplier of cooking gas in the country. Its Senior Manager (Business  Division), Khairul Anuar Ramli said PDB is continuously on the lookout for ways to innovate  and enhance its products and services for its customers. He said PDB is a long-term player,  focusing on product innovation and business sustainability, as part  of its commitment  towards its customers. (Bernama)

Bintulu Port: In talks on Samalaju deal Bintulu Port says it is in advanced discussions with the federal government, Sarawak state  government and relevant authorities on the development of Samalaju Port located in  Bintulu. It said that the talks are being held in tandem with Letter of Intent from the Sarawak  government dated Oct 6 2010 requesting it to consider undertaking the project. (Business  Times)

DBE Gurney Resources: Major shareholder, Maybank PE in talks The controlling stakeholder of poultry breeder DBE Gurney Resources is scheduled to meet  key officials of suitor Maybank Private Equity (PE) today. DBE is controlled by the Ding family,  headed by its patron Ding Chong Chow, who is also the founder and executive chairman of  the company. The meeting comes just weeks after K &  N Kenanga Holdings made a  presentation to CI Holdings group MD Datuk Johari Abdul Ghani. Kenanga values DBE at 14  sen a share, the company said in a report early this month. (Business Times)

Berjaya Land: Mulling hotel divestment? Sources say Tycoon Tan Sri Vincent Tan Chee Yioun’s Berjaya Land Bhd (BLand) is looking to  divest a majority of its existing hotel properties abroad. The sources added that the hotel  assets in Sri Lanka, Seychelles, Singapore and Vietnam, if sold, could fetch some US$170m (RM517m) in value.  It is believed that an agent may have been appointed as potential  purchasers have been approached for the sale of a couple of the company’s hotel assets. The  asking price for Berjaya Hotels Singapore is around S$40m (RM97m) and the Intercontinental  Hanoi Westlake in Vietnam was offered for an estimated US$80m (RM243m). Other resorts  identified for sale include two hotels in Seychelles (Berjaya Praslin Resort and Berjaya Beau  Vallon Bay Resort and Casino) and one in Sri Lanka (Berjaya Hotel Colombo).  While it is  unclear if the Sheraton Hanoi Hotel will be sold, a source said that the group is not looking to  sell Berjaya Eden Park London in the UK. (Business Times)

KPSB: Cancels dolomite mineral project Kumpulan Perangsang Selangor Bhd (KPSB) has withdrawn from being involved in the  extraction of dolomite mineral project in Langkawi. The company said this was due to the  non-fulfilment of certain conditions in the joint-venture agreement with a few parties back in  Nov 2007. Kumpulan Perangsang was supposed to collaborate with Metro Pinnacle Sdn Bhd  and Kedah Corp Bhd to develop dolomite limestone resources in the island. The company  told Bursa  Malaysia that in such situation, both Metro Pinnacle and Kedah Corp will retransfer their shares worth RM7,350 in Kuala Langat Mining Sdn Bhd (KLMSB) to it. (Business  Times)

Al-Hadharah Boustead REIT: Profit soars on unrealised gain Al-Hadharah Boustead REIT posted a huge jump in net profit to RM238.9m for 4Q FY2011  compared with RM32.3m a year earlier. It said this was mainly due to the large unrealised  gain from the revaluation of investment properties of RM212.5m compared with only  RM14.3m the previous year. Revenue for the quarter under review was RM22.4m compared  with RM19.8m a year earlier. For FY2011, the investment trust recorded higher revenue of  RM99.6m and  posted a 268.4%  y-o-y increase in net profit to RM305.8m compared with  RM82.1m a year earlier. It also declared a final dividend of 8 sen, bringing the total dividend  for the year to 12 sen. (Starbiz)

Tebrau Teguh: To acquire Danga Bay Sources say that the master developer of the Danga Bay waterfront project in Johor, Danga  Bay Sdn Bhd (DBSB) is to be injected into Tebrau Teguh, a property development company  linked to the Johor government. The exercise will transform Tebrau Teguh, which is majority  owned by Johor state investment arm Kumpulan Prasarana Rakyat Johor (KPRJ), into the  biggest owner and developer of sea-fronting projects. Under the exercise, Tebrau Teguh will  acquire DBSB from its current owners, Credence Resources Sdn Bhd and KPRJ. Datuk Lim  Kang Hoo owns 70% of DBSB via Credence Resources while KPRJ owns the rest. The  transaction is said to be satisfied via the issurance of new shares in Tebrau Teguh to Lim.  (Financial Daily)

Kimlun: Proposes private placement to raise RM27.94m Kimlun Corporation has proposed to raise RM27.94m from the private placement of new  shares. It said the private placement would entail the issuance of up to 22.90m new shares. It  said that assuming the placement shares are issued at an indicative issue price of RM1.22 per  placement share based on a discount of approximately 10% to the VWAP up to Jan 26, 2012  of RM1.36, the proposed private placement is expected to raise gross proceeds of up to  approximately RM27.94m. Kimlun said the shares would be placed to third party investor or  investors to be identified at a later stage. Of the RM27.94m, it said that the bulk of it or  RM13m would be used for development and incidental expenditure of Kimlun Group’s  existing land bank. Another RM9.64m would be used for working capital and RM2.80m to  purchase a parcel of industrial land. (Financial Daily)

Kimlun: Plans pre-cast concrete products factory in Seremban Kimlun Corporation plans to set up a factory in Seremban to manufacture pre-cast concrete  products to support its demand for the products to be used in the projects. Kimlun said its  unit SPC Industries Sdn Bhd had entered into a conditional sale and purchase agreement with  CIMB Bank to acquire a piece of leasehold land in Mukim Rantau, Seremban for RM15.5m cash. Kimlun said the land was near established industrial developments, such as Sungai  Gadut Industrial Park, Taman Tuanku Jaafar Industrial Park and Senawang Industrial Estate  and about 7km from the Senawang Toll Plaza of North-South Expressway. It added a factory  would be built on the site for the fabrication of pre-cast concrete products to cater for the  anticipated demand for the products in the Klang Valley. (Financial Daily)

Trinity Corp: Calls for more collateral Trinity Corp  has proposed additional collateral for the holders  of the balance of its  RM84.65m sukuk, in the form of sales proceeds from 40 shop office units at Saujana Putra  which would amount to about RM40m arising from a proposed joint venture. The proposed  collateral is in addition to existing securities in the form of the balance of  3 commercial  buildings, namely Midpoint Shopping Complex, Menara Maxisegar and Pandan Kapital  shopping complex. (Starbiz)

Eng Kah Corp: Partners Cosway China Eng Kah Corp has signed a joint-venture agreement with Cosway (China) Co Ltd on a  manufacturing operation in China. Eng Kah Corp will hold 30% of the equity in the jointventure company that will manufacture perfumes, cosmetics, skin care, toiletries and  household products. Eng Kah Corp said the equity participation will be financed by internal  funds. Eng Kah Corp’s subsidiaries are involed in the contract manufacturing of cosmetics  and household products, among others. (Business Times)

Olympia Industries: MARC cuts debt rating due to weak performance Olympia Industries’s outstanding RM49.7m nominal value redeemable unsecured loan stocks  (RULS) have been downgraded to B+ from BB- by Malaysian Rating Corp (MARC). MARC said  the downgrading reflected Olympia’s continued weak financial performance, in particular its  limited cashflow generation ability arising from its weak business profile and its dependence  on asset disposals to meet financial obligations. Olympia currently has a short-term debt of  RM81.3m, which includes an upcoming redemption of RM10.7m RULS in Apr this year. However, the company only holds cash and cash equivalents of RM31.9m as at Sept 30,  2011. MARC said it was concerned on Olympia’s ability to fund Kenny Heights Development  (KHD), a 29.5ha high-end residential project spanning in Kuala Lumpur  due to its weak  liquidity position and limited financial flexibility. (Starbiz)

Telco: U Mobile en route for a listing U Mobile Sdn Bhd, a mobile telecommunications company privately owned by businessman  Tan Sri Vincent Tan Chee Yioun, is bound for a listing on the Main Board by the middle of the  year, according to sources. “U Mobile is in the process of working out the final details before  submitting the documents to the relevant authorities. The company is hoping to get approval  from Securities Commission Malaysia by April, with the aim of listing by July,” says the  source. (Financial Daily)

Oil & Gas: Gas Malaysia expected to ink deal with Petronas Gas Malaysia which is en route to listing, is expected to sign a gas sales agreement (GSA) with  Petronas early next month.  The government has reviewed the gas price for the supply of the  commodity from Petronas to Gas Malaysia for usage under 2m standard cu ft per day from  RM11.05 per mmBTU to RM14.05 per mmBTU effective Jun last year. In tandem with this  increase in price, the average price of gas supplied by Gas Malaysia to its customers had also  increased from RM15.00 mmBTU to RM16.07 mmBTU. (Business Times)

Steel: More players expected to produced hot-rolled coils The 12 years old monopoly in hot-rolled coils (HRC) by Lion Group unit Megasteel Sdn Bhd in  Malaysia is likely to be broken with the emergence of at least 2 potential HRC and hot-rolled  plate players within the next 2 years. A source close to the steel industry said the  Competition Act 2010 taken effect early this month would pose a challenge and opportunity  for the local steel industry players. (Starbiz)

Plantations: Another blow to palm oil producers US Environmental Protection Agency (EPA) said  palm oil biofuel has failed to meet  greenhouse gas saving standards to qualify for the US renewable fuels programme, dealing  another blow for Southeast Asia producers in search of new markets.  The EPA said in  a  regulatory filing that palm oil converted into biofuels in Indonesia and Malaysia cut up to  17% of climate warming emissions, falling short of a 20% requirement to enter the world's  largest energy market. For 2012, the EPA raised annual renewable fuel mandates by 9.4% to  15.2 billion gallons. If the EPA findings are finalised later this year, palm oil producers would  now miss out on supplying biomass-based diesel to US oil refiners and importers who  currently use canola and soyoil fuels.  The agency set a  deadline of February 27 for public  comment on its findings. (Business Times)

Power: 47 potential bidders for new power plants The Energy Commission has unveiled a list of 47 prospective bidders, comprising both local  and foreign firms, for the development of new combined-cycle power plants in the country. The prospective bidders, it said, would soon be invited to submit pre-qualification as sole  developer or as a consortium. The pre-qualification document would be issued by first week  of next month. Among the local parties bidding for the combined-cycle power projects are  Tenaga Nasional Bhd (TNB), Tanjong Energy Holdings Sdn Bhd, YTL Power International Bhd,  Petroliam Nasional Bhd, Sime Darby Energy Sdn Bhd, Malakoff Corp Bhd and Ranhill Power  Sdn Bhd. The foreign parties, among others, are Samsung C&T Corp, Marubeni Corp, Siemens  Project Ventures, Mitsubishi Corp, Mitsui & Co, Daewoo International Corp and Korea  Electric Power Corp. (Starbiz)

Financial: MyCC warns financial institutions against breaking Bank Negara rules The Malaysia Competition Commission (MyCC) will take action against financial institutions  should they collude to make changes to automotive loan applications without a formal  directive from the central bank. MyCC CEO Shila Dorai Raj said that the Competition Act 2010  applied to banks if they acted without any directive from Bank Negara. Citing sources, a local  business daily reported that carbuyers may soon find it more difficult to secure loans as  banks were moving to clamp down on auto financing with an emphasis on luxury carbuyers,  who may be required to take out as much as 50% of upfront payment. It also reported that  potential luxury carbuyers might be limited to a maximum of 2 car loans in their names at  any one time. A spokesman for the central bank confirmed that no such directive had been  issued. (Starbiz)

Shipping: Baltic Dry Index plunges to three-year low The Baltic Dry Index (BDI), a key barometer for dry index cargo rates, fell way below the key  1,000-mark to a three-year low during the Chinese New Year festive season. The index closed  at 753 last Thursday, testing lows last hit 3 years ago. The BDI was at 1,624 on Jan 3. The  index has fallen some 93% since hitting a record high of 11,793 in May 2008, just before the  onset of the global economic crisis. (Financial Daily)

Samling seeks to privatise unit
Samling Strategic Corp SB (SSC) is proposing to privatise unit Samling Global Ltd (SGL) and in turn to privatise timber firm Lingui Developments Bhd and associate company Glenealy Plantations (Malaya) Bhd. Lingui and Glenealy said in separate statements to Bursa Malaysia last Friday that the privatization exercise would be conditional, among other things, upon the approval of the independent shareholders of SGL. “If a formal offer in respect of the proposal is put forward, SSC has indicated that it expects to propose an offer price of RM1.63 per share in respect of the Lingui privatization and RM7.50 per share in respect of the Glenealy privatization,” Lingui said. (StarBizWeek) Please see accompanying report.

47 potential bidders for new power plants
The Energy Commission has unveiled a list of 47 prospective bidders, comprising both local and foreign firms, for the development of new combined-cycle power plants in the country. The commission said on its website that the names of the prospective bidders were subject to further verification. The prospective bidders, it added, would soon be invited to submit pre-qualification as sole developer or as a consortium. Only one submission is permitted from each participant or from any group of companies forming a consortium. The pre-qualification document would be issued by the first week of February. Among the local parties bidding for the combined-cycle power projects are TNB, Tanjong Energy Holdings SB, YTL Power, Petronas, Sime Darby Energy SB, Malakoff Corp and Ranhill Power SB. (StarBizWeek)

Schools project worth RM350m?
The Perluasan Sistem Pengurusan Sekolah (SPS), or school management system project, which The Media Shoppe Bhd and Theta Edge Bhd are jointly proposing to the government, is estimated to be worth around RM350m, according to a source familiar with the matter. Theta Edge said in its reply to Bursa Malaysia’s query last Thursday that the estimated value of the project, profit margin, revenue and profit sharing ratio between the 2 parties are still being discussed. (Financial Daily)

Khazanah to strengthen focus on healthcare with Acibadem buy
The acquisition of a 75% stake in Turkish healthcare provider Acibadem Saglik Yatirimlari (ASYH) by Khazanah Nasional and its subsidiary Integrated Healthcare Holdings (IHH) will see the government’s investment holding arm achieving another milestone with a strategy that focuses on healthcare. “5 or 6 years ago, we identified healthcare as a very important sector that brings together several values,” said Khazanah’s MD Tan Sri Azman Mokhtar.(Financial Daily)

Leong Hup to be delisted soon
Leong Hup Holdings Bhd is expected to be delisted from the Bursa Malaysia Main Market by end-March upon the completion of its proposed capital-repayment exercise. Executive director Tan Sri Francis Lau Tuang Nguang said the exercise would start next month with the payment of the proposed dividend to be concluded in mid-February. “We were hoping to obtain the High Court order for the proposed capital repayment next month and to complete it in early March,” he told StarBiz after the company's EGM recently. (StarBiz)

Maybulk unaware of UMA’s basis
Malaysian Bulk Carriers says it is not aware of any reasons or any corporate exercise that may have contributed to the increase in the price and high trading volume of its shares. It was replying to an unusual market activity query from Bursa Malaysia Securities following a 21 sen rise in its share price to RM2.65 on Friday. (StarBizWeek)


Greenhouse gas emissions from biofuels such as  palm oil, soybean and  rapeseed are higher than those for fossil fuels when the effects of Indirect Land  Use Change (ILUC) are counted, according to leaked EU data seen by EurActiv.  The default values assigned to the biofuels compare to those from  Canada’s oil sands – also known as tar sands – according to the figures,  which should be released along with long-awaited legislative proposals  on biofuels in the spring.  A spokesperson for the European Commission said she could “not  comment on leaked documents, such as impact assessments which have  not been published.” But industry and civil society sources described  the data as credible and in line with other studies. One said it would  sound a death knell for the biodiesel industry, if published. (EurActiv)

The 12-year old monopoly in hot-rolled coils (HRC) by  Lion Group unit  Megasteel Sdn Bhd in Malaysia is likely to be broken with the emergence of  at least two potential HRC and hot-rolled plate players within the next two  years.  A source close to the local steel industry said the Competition Act 2010  taken effect early this month would post as a challenge and opportunity  for the local steel industry players. “There will be fairly good  competition among local steel players which can lead to the possibility  of consolidation as well as mergers and acquisitions within the sector,”  a source said. (Star Biz)

Malaysian rubber prices may trend firmer this week while tracking  regional futures markets. Dealers said the tight supply situation, Thailand’s  price-support plan and firm oil prices were expected to lend support to the  commodity. Meanwhile the US Federal Reserve’s announcement to hold a low  interest rate regime is expected to help create better sentiment though the US  gross domestic product data would remain a concern among traders. (Bernama)