Foreign funds purchased a net RM1.3bn (US$431m) of Malaysian shares in Feb for the fifth straight month, according to data on the Kuala Lumpur stock exchange’s website. They bought RM200m of stocks in Jan, RM800m in Dec 2011, RM700m in Nov 2011 and RM1.5bn in Oct 2011. (BT)
With work on the mass rapid transit system’s (MRT) first line getting into gear, MRT Corp Sdn Bhd is beginning to draw up plans for the next two lines. Its CEO Datuk Azhar Abdul Hamid said the priority now is to prepare proposals for the second and third MRT lines by the end of the year. MRT Corp expects to award most of the 19 construction packages for the Sungai Buloh-Kajang line by the end of the year, having already awarded two packages. The award of the tunneling package could be firmed up and announced by Apr or May, he said. (Financial Daily)
MRT Corp is beginning to draw up plans for the next two MRT lines. CEO Datuk Azhar Abdul Hamid said the priority now is to prepare proposals for the second and third MRT lines by end 2012. External consultants will be appointed to draw up proposals for the two alignments and submit to the Land Public Transport Commission (SPAD). MRT Corp is looking to carry out the planning as quickly as possible. "Untill and unless we firm this up, the certainty is not there." he said. The second MRT line is slated to be a circle line serving the inner city. The third line will serve the northwest and southwest regions outside KL. The alignments have not been finalised. On the MRT SBK line, MRT Corp expects to award most of the 19 packages by end 2012. Two packages was awarded so far. Award of the tunnelling package could be firmed up by Apr/May 12, he said. (Financial Daily)
Petroliam Nasional Bhd (Petronas) has proposed a pricing mechanism for natural gas once the regasification terminal in Melaka comes into operation in Aug. “We have sat down with three deputy ministers a few weeks ago, and we proposed a review of the formula. It is now being brought to the Economic Council. So, we are waiting for that,” said president and CEO Datuk Shamsul Azhar Abbas. The terminal will allow Petronas to import gas to make up for the current shortage. A pricing mechanism is necessary as currently Petronas’ supply of gas is heavily subsidised. Under the government’s subsidy rationalisation scheme, natural gas prices would go up by RM3 per mmBtu every six months. This began with a first hike last Jun. The second increase, due last Dec, has not been implemented. Each RM3 increase is worth about RM1.7bn-1.8bn to Petronas, he said. (Financial Daily)
Petroliam Nasional Bhd (Petronas) has reiterated that it will not continue selling subsidised gas to Tenaga Nasional Bhd (TNB) for electricity generation this year. Its president and chief executive, Datuk Shamsul Azhar Abbas said the offer was supposed to be a "one-off" affair and the government should not pay for any subsidy on gas. "Never had we mentioned in the past that its going to be continuous handout to TNB...It was supposed to be one-off, because we pity them as they don't have enough cash at that time. "As a member of the economic council, we have volunteered to help them out and the government has also volunteered to play its part as well,". Currently, Petronas is still waiting to get feedback from Putrajaya on its offer to foot a third of the cost to supply gas to TNB in order to help the consumers. Shamsul Azhar said that for every RM3.00 subsidy, it would cost the group some RM1.7bn. Shamsul Azhair said that the shortage of natural gas will come to an end when the regassification terminal in Malacca comes online in July or August this year, which would allow imported LNG to be introduced to peninsular Malaysia. He stressed, however, that output from the plant will be at market prices. (Bernama, Malaysian Insider)
Petroliam Nasional records RM55.6bn profit
Petroliam Nasional (Petronas) posted a 10.8% growth in net profit for the nine months ended 31 Dec 2011, helped by higher margins and favourable oil prices, but predicted a "difficult and challenging" this year. President and chief executive officer Datuk Shamsul Azhar Abbas said the difficult year ahead will be mainly due to the decline in global fuel demand, production as well as lower crude oil prices. Petronas expects a dip in production this year, in the range of a single-digit %, and sees a flat output growth this year. (BT)
Score gets RM2bn investments
Two South Korean companies will invest a combined USD650m (RM1.95bn) in Samalaju Industrial Park in Bintulu. Dongbu Metal Co Ltd and Asia Cement Co Ltd are among the latest foreign investors in Sarawak Corridor of Renewable Energy (Score). Sarawak Industrial Development Minister Datuk Amar Awang Tengah Ali Hasan said both Dongbu Metal and Asia Cement were investing in the metallic silicon industry. The two companies are expected to start construction of their manufacturing facilities soon. (StarBiz)
Tenaga Nasional Bhd (TNB) is hopeful that the charges to use Petroliam Nasional Bhd's regassification plant in Malacca will be finalised by June in order to bring in liquefied natural gas (LNG) into the country. Gas imports are expected to commence in Malaysia once the regassification terminal is up in August or September, and currently the cost to import is about RM40 per mmbtu (million me-tric British thermal units) in the open market before reaching the terminal TNB will be utilising the Petronas regassification terminal to buy processed LNG. Its president and chief executive officer, Datuk Seri Che Khalib Mohd Noh, said the charges would determine the final price for importing LNG as it will enable TNB to know the additional cost that will be incurred for the regassification terminal and the pipeline cost. "We hope all this will be finalised before June. If not, we won't be able to bring in the gas but the terminal will be already up". (Bernama)
Ananda Krishnan (AK) has sold his power generation assets to 1 Malaysia Development Bhd (1MDB) for RM8.5bn. The sale of Tanjong Energy is part of a corporate overhaul which will also see AK sell his satellite business in the coming weeks to finance a push into gas exploration in Southeast Asia. Rather than own power assets, which are heavily dependent on medium-term state-awarded concessions and power purchase agreements (PPA), AK is betting that there is more money to be made in the supply of gas required to run the power plants. Close associates note that AK has been quietly building his portfolio in the oil and gas business in Indonesia and is eyeing more gas exploration acreage in the region. The executives added that 1MDB has also emerged as the most serious bidder for AK’s satellite business, which is grouped under Measat and is valued at around RM3.9bn. (Singapore Straits Times, Malaysian Insider)
The offer price for SP Setia shares by PNB and Tan Sri Liew Kee Sin is "not fair and not reasonable", according to independent adviser AmInvestment Bank. It said in a special circular to shareholders yesterday that the offer for the warrants of SP Setia by the offerors however is "not fair but reasonable". The special cicular advised shareholders to accept the warrants offer (if there is an absence of any competing take-over offer) but totally reject the shares offer, of which this recommendation was also concurred by the non-interested directors of the company. AmInvestment said the price PNB paid for the acquisition of SP Setia's mother shares even after being adjusted for the bonus issuance are below the estimated RNAV of SP Setia of RM5.00 each. The offer is now unconditional because the offer has received valid acceptances totalling 51.24% of the issued and paid up share capital of SP Setia and 65.03% of its outstanding warrants. (Starbiz)
SP Setia Group unit Setia EcoHill Sdn Bhd has proposed to issue up to RM505m commercial papers and/or medium-term notes with a tenure of seven years. This notes will be issued in two tranches of medium-term notes of up to RM305m under tranche one, and either a commercial paper or medium-term notes issuance of RM200m under tranche two. (Starbiz)
CIMB Group Holdings Bhd has entered into a strategic collaboration agreement with John Keells Stock Brokers (Pvt) Ltd (JKSB) to facilitate trading on the Colombo Stock Exchange. JKSB will also supply CIMB Group with research, which will be disseminated to CIMB’s clientele globally under a CIMB/JKSB co-branded banner. (BT)
Sime Darby Bhd is considering buying the 1,400 MW coal-fired Jimah power plant in Port Dickson, according to reliable sources. The price tag for the deal isn't yet clear, with industry sources speculating anything above RM1.1bn. (StarBiz)
The Roundtable on Sustainable Palm Oil (RSPO) foresees total global sustainable palm oil consumption to double this year from 5% last year, given increasing demand and awareness. Its secretary-general Darrel Webber said with multinationals and world's largest palm oil buyers pledging to source RSPO-certified palm oil by 2015, the consumption trend is expected to increase. (Bernama)
KLIA2 is almost half-way completed and is on schedule, said Malaysia Airports CEO, Tan Sri Bashir Ahmad. The terminal is due for completion in April next year, adding that the project was within the budget. Bashir said MAHB received overwhelming response from interested parties for space at KLIA2. It was reported that MAHB will be making the awards for the 225 outlets at KLIA2 by July this year. (Malaysian Reserve)
The soft launch of the proposed new short-haul brand by Malaysia Airlines is expected to take place next month, its CEO of short-haul, Ignatius Ong said. He said the new airline, which has yet to be named, is expected to be fully operational by the middle of this year. The new airline will be flying entirely on new Boeing 737-800 fleet of aircrafts and would be specifically targeted to meet the needs of Asia’s premium travellers. (Bernama)
Firefly is looking to expand its fleet size by acquiring more aircraft, said CEO Ignatius Ong. However, that hinged on its load factor improving to an average 89% from some 60% to 65% now. In the meantime, Firefly could lease some aircraft. (Star Biz)
LTAT will dilute its shareholding in Boustead Holdings from 60% to 51% by year-end, its chief executive Tan Sri Lodin Wok Kamaruddin said. The move is in line with the Government’s call for government-linked companies to dilute their shareholdings to create liquidity in the market. (Bernama)
Two South Korean companies will invest a combined US$650m in Samalaju Industrial Park in Bintulu. Dongbu Metal and Asia Cement are among the latest foreign investors in Sarawak Corridor of Renewable Energe (Score). The two companies were expected to start construction of their manufacturing facilities soon. (Star Biz)
Affin Holdings Bhd expects its plan to set up Islamic banking operations in China to materialise in the second half of this year. Deputy chairman Tan Sri Lodin Wok Kamaruddin said Affin would collaborate with its shareholder, Hong Kong-based Bank of East Asia Ltd (BEA), to offer Islamic banking products in China. (StarBiz)
Syarikat Prasarana Negara Bhd is to disburse in two months the remaining RM2.5bn worth of four work packages for the Ampang LRT extension. The packages are for the supply of LRT trains, construction of station 12, and supply and management of the access card and engineering procurement and construction contract. Group MD Datuk Shahril Mokhtar said contracts worth RM4.5bn were given out. On financing Prasarana would enter the market to secure another RM4bn via two tranches this year. So far, Prasarana had raised RM3bn via Sukuk. (Financial Daily)
A 3.29% stake comprising 13.36m shares in Silver Bird Group Bhd belonging to managing director Datuk Jackson Tan has been force sold, according to a filing with Bursa Malaysia. His shares were sold over the past four days, since March 1, at between 20.9 sen and 22 sen per share. Along with two others, Tan has been suspended from the company pending an internal investigation into irregularities in the company’s accounts. (Financial Daily)
The Media Shoppe Bhd (TMS) will not participate as a subcontractor for certain portions of a RM85.9m project for the commissioning of an automatic fare collection system for KTM Bhd (KTMB) commuter stations. TMS told Bursa Malaysia that it was not feasible for the loss-making company to undertake the project due to the lack of funding within the required timeframe of delivery. TMS has decided not to accept the letter of award from Hopetech Sdn Bhd, the contractor for the KTMB project. (Starbiz)
Malaysian Rating Corp (MARC) has revised the outlook on Alam Maritim’s Islamic sukuk and Islamic debt ratings to negative, from stable previously. The revised outlook reflects the pressure on Alam’s credit profile arising from significantly weaker earnings and cash flow generation in 2010 and 2011. The rating action affects RM475m of outstanding notes. (Star Biz)
Ivory Properties Group Bhd is expecting approval from the Penang Development Corporation (PDC) this week for its proposed RM10bn "Penang World City" project at Bayan Mutiara. Executive director Murly Manokharan said yesterday the development was expected to incorporate, among others, medical facilities, Grade-A offices and both high-end and affordable housing units. Penang World City, he noted, was expected to be completed in eight years, with work on the first phase commencing at the end of this year. (BT)
Century Software Holdings acquires 100% stake in Centennial Profile SB
Century Software Holdings has acquired two ordinary shares, representing 100% equity interest, in Centennial Profile SB from Ng Ah Poong and Teng Mee Leng for RM2. In an exchange filing yesterday, the company said the acquisition would enable Century Software to create another sustainable revenue pillar which will contribute to the expansion of the group as a whole. The intended principle activity of Centennial Profile SB is to focus on the business performance management solutions, it said. (Malaysian Reserve)
Esthetics International Group to acquire 4 units space in Paya Lebar, Singapore
Esthetics International Group’s wholly-owned subsidiary, EIG Global Pte. Ltd, has proposed to acquire four units space of 5,436 sq ft floor areas in Paya Lebar Square, Singapore from Paya Lebar Development Pte Ltd for SGD9.4m (RM22.6m). In a filing with Bursa Malaysia Securities yesterday, the skincare, health and cosmetics company said the properties shall be used as EIG's corporate office in Singapore. (Malaysian Reserve)
Syarikat Takaful Malaysia: May buy London properties
Syarikat Takaful Malaysia is looking at diversifying its investment portfolio by acquiring properties in London this year. Group MD Datuk Hassan Kamil said the Islamic insurer has RM200m in its war chest. He added that they are scouting for commercial buildings or offices within a 30km radius of central London. It is learnt that the company has appointed an adviser to search for properties by the end of this month. (Business Times)
JAKS: Gets RM252m construction job
JAKS Resources has accepted a RM252m contract for the construction of five blocks of 15-storey commercial buildings and four levels of basement carparks in Ara Damansara. JAKS said its subsidiary JAKS Sdn Bhd had accepted the letter of award from KH Chew Architect, on behalf of MNH Global Asset Management Sdn Bhd. Works are to be completed by August 31, 2013. MNH Global is wholly owned by Island Circle Development (M) Sdn Bhd, a major shareholder of JAKS Island Circle Sdn Bhd, which in turn is 51%-owned by JAKS. (StarBiz)
Envair: RM1.5bn oil project boost?
Sources familiar with the matter said the new major shareholder of Envair Holdings is expected to inject and oil and gas project worth as much as US$500m (RM1.5bn) into the company. According to Business Times, the project is located in Eastern Europe. In addition to the oil and gas contract, the board is also expected to announce today a name change for the company to Raya Energy Bhd. (Business Times)
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