Abu Dhabi fund eyes sale of USD1.3bn stake in RHB Cap
An Abu Dhabi sovereign wealth fund is exploring the sale of its USD1.3bn stake in Malaysian lender RHB Capital six months after buying the shares, sources familiar with the matter told Reuters, and has engaged in early talks with Japan's Sumitomo Mitsui Banking Corp (SMBC). Aabar Investments’ 25% holding in RHB has dropped in value by about a third since it bought the stake for USD1.9bn last year from Abu Dhabi Commercial Bank PJSC. (Reuters)
RCE raises funds to repay loans
RCE Capital will undertake a series of corporate exercises for the repayment of bank borrowings, working capital-related purposes and to reward its shareholders. It told Bursa Malaysia yesterday that it intended to raise total gross proceeds of RM178.39m to RM182.10m from the proposed renounceable rights issue of up to 479.198m new redeemable convertible non-cumulative preference shares (RCPS) of 10 sen each, on the basis of two RCPS for every five shares held after the proposed bonus issue. (StarBiz)
Dayang unit wins RM125m Talisman job
Dayang Enterprise holdings wholly-owned subsidiary, Dayang Enterprise SB, recently won a contract from Talisman Malaysia worth RM125m. It said the contract is for the provision of topside general maintenance. The duration of the contract is for a primary period of three years, with the option of an extension for two years of one year each. (Financial Daily) Please see accompanying report
Petra Energy to buy Labuan yard site for RM16m
Petra Energy’s unit Petra Resources SB has proposed to buy two parcels of land in Labuan which is it currently renting, for RM16m. The two parcels of leasehold land measured 2.294 ha were currently used for its fabrication and construction activities. (Financial Daily)
Sentoria shares oversubscribed by 5.4 times
Sentoria Group public tranche was oversubscribed by 5.4 times for its IPO on the main market of Bursa Malaysia. Sentoria received a total of 6,829 applications for 127.2m shares with a total value of RM108.1m, for the public tranche of 20m shares under the group’s IPO. (StarBiz)
Malaysian banks with stakes in Indonesian financial institutions no longer need to sell down their holdings as Indonesia is reportedly not going ahead with a plan to limit ownership. According to a Reuters report yesterday, Indonesia's state deposit agency (LPS) said the country will not implement a planned regulation to limit ownership in domestic banks because it does not want to scare away potential foreign investors from the sale of state-owned Bank Mutiara. (TheSunDaily)
The completion of the merger between SapuraCrest Petroleum and Kencana Petroleum Bhd has been delayed by a month while both companies iron out their respective "administrative" issues. The merger of the two oil and gas companies was initially slated for completion at the end of Feb, 2012, but Kencana Group Chief Executive officer Datuk Mokhzani Mahathir said it is likely that the target would not be met. However, the listing of the newly-merged entity, to be known as Sapura Kencana Petroleum Bhd, will still be able to meet its end-March target, said SapuraCrest group president and CEO Datuk Seri Shahril Shamsuddin. (Malaysian Reserve)
Puncak Niaga clarified that it has not formalised any solid waste management contracts in Cambodia with the local government authorities. It has also not bid for the development of marginal oil fields and brownfields in Malaysia. (NST, BMSB)
The growing interest from Chinese investors in Malaysian properties has prompted Mah Sing Group to open a representative office in Shanghai to feature its residential and commercial properties. The office will serve as a business liaison between Mah Sing, local regulators and local companies in China to explore the property development industry in China. (BT)
Palm oil prices are expected to ease on the back of higher production as the effect of La Nina is anticipated to subside in the second-quarter of this year, a local broker said. (Malaysian Reserve)
Cost of vehicle ownership (CVO) in Malaysia is still among the most competitive in the Asean region due to the subsidised petrol prices, cheaper road tax and insurance premium. "Compared with Thailand and Indonesia, the CVO in Malaysia is lower by 39% and 12%, respectively," Malaysia Automotive Institute (MAI) chief executive officer Madani Sahari said. (BT)
IJM Corp Bhd is confident of securing three to four construction projects in the building of the new RM7.07bn West Coast Expressway (WCE) project, according to chief executive officer and managing director Datuk Teh Kean Ming. IJM currently holds 22.72% of Kumpulan Europlus Bhd which in turn holds a 64.2% controlling stake in West Coast Expressway Sdn Bhd. However, IJM may become a minority shareholder in the vehicle that will own the WCE concession. (Malaysia Reserve)
Malaysia's construction industry is expected to record RM90bn worth of projects for implementation this year, driven by government and private projects, according to the Construction Industry Development Board (CIDB). Chief Executive Dauk Seri Judin Abdul Jarim said private financing initiatives and public-private partnerships were expected to account for the highest value of projects at RM32bn, followed by government projects (RM24bn), residential (RM13bn) and other private investments totalling RM19bn. (Starbiz)
Hap Seng Consolidated Bhd posted a marginal year-on-year increase in profit in 4QFY11 results, while its listed plantation arm, Hap Seng Plantations Holdings Bhd saw a slight decrease, according to announcements made to Bursa Malaysia yesterday. Hap Seng Plantations posted lower profit despite having registered a marginally higher revenue as a result of higher production cost. (Financial Daily)
Tune Group will ink a deal today with a Middle Eastern businessman in Qatar to extend its services to the Middle East. As part of the deal, Tune Group will set up hotels in the Middle East and offer Tune Talk and Tune Money services in the region, according to sources. The relationship would be expanded to cover other areas over time, one source said. (Starbiz)
Investing interest may return to smaller hard disk drive (HDD) component makers after recent earnings results from JCY International Bhd, as well as Western Digital Corp and Seagate Technology in the US topped analysts' expectations, implying a more positive outlook on the sector. The floods in Thailand which disrupted the global supply chain of HDDs have created an opportunity for the industry. From excess inventory and falling prices amid competition from existing players and the threat of solid-state drives, the HDD industry is now witnessing supply shortages. (Financial Daily)
China-based shoe manufacturer Xingquan International Sports Holdings Ltd's CEO Wu Qingquan believes the company can maintain its double-digit growth for FY12 ending June 30. From 2006 to 2011 the company had chalked up a compound annual growth rate of around 39% for both revenue and net profit. (Financial Daily)
The High Court has dismissed the applications for a judicial review of the enforcement actions taken against the former directors of Transmile Group by Bursa Malaysia. The High Court also ordered for costs to be paid by the former directors, namely Gan Boon Aun, Khiudin bin Mohd @ Bidin and Shukri bin Sheikh Abdul Tawab to Bursa. (Starbiz)
Dialog: 2Q earnings up 15.1% to RM41.45m with new biz, Asian ops
Dialog Group’s earnings rose 15.1% to 41.45m in 2Q FY2012 from RM35.99m a year ago, boosted by higher revenue from the consolidation of its new businesses and operations. Its revenue increased at a stronger pace of 33.5% to RM358.62m from RM268.53m. Its earnings per share were 2.10 sen compared with 1.84 sen. It said that the consolidation of the revenue of the newly acquired fabrication and multi-disciplined engineering company, Fitzroy Engineering Group Ltd, based in New Zealand was the main contributor to this significant increase in revenue. Dialog added that contribution from Malaysia and Asian operations such as Brunei, Thailand, Oman and China, also increased significantly mainly due to higher revenue of specialist products and services recorded. In 1H FY 2012, its earnings grew 24.4% to RM85.99m from RM69.09m while its revenue increased 34% to RM713.85m from RM532.33m. (Financial Daily)
UEM Land: Set to explore new growth markets
Fresh from the consolidation of its operation after the purchase of Sunrise, the enlarged UEM Land now has a complete set of skills and expertise to scour for opportunities in new growth markets, both locally and overseas. UEM Land MD and CEO Datuk Wan Abdullah Wan Ibrahim said the acquisition of Sunrise last year had resulted in a full set of skills for the property group to move to its next level of growth by leaps and bounds. Although it still has much in its plate as far as landbank and projects in Malaysia are concerned, UEM Land has set its sight to venture to other regional markets such as India, Vietnam and Myanmar. Wan Abdullah said that they are talking to a number of potential partners and will be sending their teams to India and Vietnam to explore the opportunities there. (Starbiz)
Construction: Jobs worth RM90bn seen in 2012
The Construction Industry Development Board (CIDB) said Malaysia's construction industry is expected to record RM90bn worth of projects this year driven by government and private projects. Chief executive Datuk Seri Ir Judin Abdul Karim said private financing initiatives and public-private partnerships are expected to contribute the highest value of projects at RM32bn, followed by government projects (RM24bn), residential projects (RM13bn) and other private investments (RM19bn). He added that the trend this year is expected to be in line with the trend for the previous 4 years where construction investment by the private sector averages about 65%. (Business Times)
Property: Johor property market may face oversupply in the longer term
With the spate of big-ticket projects being launched in and around Johor's Iskandar region, such as Iskandar Waterfront Holdings Bhd's RM80bn transformation of the coastline fronting Singapore, there are concerns that a glut could emerge in the state's property market down the line. Although an oversupply in the near term was unlikely, valuers and agents said it could materialise in a decade or later as the developments there would have a long gestation period. Johor Baru-based V. Sivadas, executive director of PA International Property Consultants Sdn Bhd, pointed out that a glut was imminent if buying interest from Singapore, which has thus far led demand, dried up. However, he noted that if the proposed high-speed rail between the two countries was fast-tracked, it could create an “instant demand” for Johor properties as the two highways linking Malaysia to the island state faced heavy congestion. (Starbiz)
Economy: Government wants to gather feedback on implementation of GST
The Government will hold series of roundtable discussions beginning middle of this year to gather more feedback and suggestions from relevant parties on the implementation of the Goods and Services Tax (GST). Deputy Finance Minister Datuk Donald Lim Siang Chai said among those involve in the discussions were the business community, chambers of commerce, non-governmental organisations, economists, tax experts and manufacturers. Asked whether the GST would be implemented after the general election, he declined to comment but said Malaysia had no choice but to introduce the tax scheme sooner or later. He said the government need to get the consensus from the relevant parties and we are looking at achieving between 60% and 70% approval rate from them before implementing the scheme. (Starbiz)
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