Friday, March 16, 2012

20120316 1014 Malaysia Corporate Related News.

AirAsia, MAS: Minister says there’re still opportunities for collaboration
Minister in the Prime Minister's Department Datuk Seri Idris Jala  said there are still  opportunities for MAS and AirAsia to collaborate in areas that can benefit both. In his own  words, he said that they should find areas where they can work together. There are areas  where they have to compete and that is very important. He said the Competition Act, which  came into force in late Jan, would be the guideline for both airlines. (Bernama)

Proton: Company says P3-21A a global car in many aspects
Proton’s Senior Director Operations, Dr Wolfgang Karl Epple said the company’s new model,  codenamed P3-21A, is a global car in many aspects. Epple said this is because experts from  all over the world were involved in the processes to develop and design the car. He cites the  adoption of international benchmark processes such as the simulation. He added the team  that developed the car is also international comprising of experts from  Italy, France,  Germany and Korea. Perusahaan Otomobil Nasional Sdn Bhd's Head of Styling, Engineering  Division, Azlan Othman said the P3-21A is the result from the collaboration with Italian-based  Italdesign Giugiaro, that would bring Proton to the next level in the aspects of design. (Bernama)

Proton: Board not seeking other parties for takeover offer
Proton’s board of directors has picked Affin Investment Bank as an independent adviser for  the non-interested directors and shareholders in relation to DRB-Hicom’s takeover offer. It  said that the board of directors of Proton wishes to confirm that the board is not seeking any  other person to make a take-over offer of its voting shares or voting rights. Proton also  advised the holders of the offer shares not to take any action until they have received the  independent advice circular from the independent adviser. On Wednesday, Proton received  a notice of unconditional take-over offer from Maybank Investment Bank on behalf of DRBHicom which had extended a mandatory take-over offer to acquire all the remaining  274.55m Proton shares or 49.99% at RM5.50 cash per share. (Financial Daily)

MISC: Oil terminal to start up by end of month
The newly built ATT Tanjung Bin oil terminal, which is located in Johor, will conduct a dry run  of operations within this week and expects to start up fuel-oil operations by the end of the  month. ATT Tanjung Bin Sdn Bhd (ATB) CEO, Eric Arnold said the terminal is ready for a dry  run of the jetty and related facilities, adding that it is in the last phase of construction now,  and will be completed within three weeks. (Business Times)

Kinsteel: Streamlining downstream ops, one-off costs of RM9m
Kinsteel  is streamlining its downstream business operations, especially its 51% owned  Perfect Channel Sdn Bhd, which has been affected by weak steel prices and rising material  costs.  The company said the Perfect Channel’s core activities were manufacturing and  trading of steel beams, bars, wire rods and other steel products. However, over the past few  years, Perfect Channel was affected by weaker-than-expected global steel demand and rising  material costs and also higher transportation cost for the raw materials. As such, it said the  streamlining of business operations is a strategic move  to consolidate Kinsteel group’s  downstream business which is in line with Kinsteel group’s on-going cost savings exercise  across its industry value chain. The streamlining, it said, would reduce the group’s turnover  but it would not have a material adverse impact on the profitability in the future. Hence, the  group expects a one off cost of approximately RM9m to compensate its existing staff and  workers affected by the streamlining of business operations. (Financial Daily)

EP Manufacturing: Takes over Maju Expressway
EP Manufacturing (EPMB) is buying the 26km Maju Expressway (MEX) from Maju Holdings  Sdn Bhd. According to sources, the company will pay RM1.7bn for the highway  concessionaire including its debts. EPMB and Maju Holdings will sign the acquisition today. A  source familiar with the deal said EPMB will finance the acquisition by issuing RM1.2bn in  sukuk while the remaining amount will be raised through bank borrowings.  The total project  cost of MEX is estimated to be RM1.32bn, of which RM976.7m was funded via government grants. (Financial Daily)

Selangor Dredging: Plans housing project with RM150m GDV in Gombak
Selangor Dredging plans to launch a housing project with an estimated GDV of RM150m in  Gombak. It is buying three pieces of leasehold land measuring nearly 36,000 sq  m from  Superior Dignity Sdn. Bhd for RM34.50m. The leases of the land to be acquired will expire  between 2069 and 2071. Selangor Dredging’s unit SDB  Properties  Sdn Bhd has initiated  application for a development order (DO) to develop the said lands with 79 units of superlink  terraces and 35 units of medium cost apartments. The valid DO has yet to be obtained from  the relevant authorities. It said the pieces of land were located in the centre of the Melawati  communities and surrounded by amenities including Jusco Shopping Centre, Giant and  Carrefour Hypermarket, Ampang Point, Melawati Urban Square and KLSC 2. (Financial Daily)

Eversendai: Expects new projects to account for 25% of revenue Eversendai Corporation expects to see a 25% contribution to its revenue from new project  ventures in 5 years. Group executive chairman and MD, Datuk A.K. Nathan said all the new  ventures will be related to their core business. One of the new ventures Eversendai is looking  at is the fabrication portion of the oil and gas industry. As of Feb 29, the group said it had  secured new contracts worth RM467m. (Financial Daily)

Sunway REIT: SC approves RM1.6bn debt papers
Sunway Real Estate Investment Trust’s (SunREIT) proposed issuance of up to RM1.6bn in  commercial papers has been approved by the Securities Commission (SC). It  said the  commercial paper has  7-year tenure and the funds raised will be  used to repay existing  borrowings granted by Public Bank. Funds raised will also go towards its working capital  requirements and defray expenses in relation to the exercise. (Financial Daily)

Deleum: Proposes 1-for-2 bonus issue
Deleum has proposed a 1-for-2 bonus issue of 50m new shares of RM1 each. It said the  proposed bonus issue would be  capitalised from its retained earnings, and would result in  the company’s issued and paid-up capital increasing from 100m shares to 150m shares of  RM1 each. (Bernama)

Zelan: Unit gets nod to undertake RM307.3m transport terminal project
Zelan's unit, Terminal Bersepadu Gombak Sdn Bhd (TEGAS), has been granted the concession  by the federal government to undertake the development of Gombak Integrated Transport  Terminal (GITT). The company said the concession, on a build-lease-manage-operate-transfer  basis by way of public-private-partnership, was for 25 years and three months from the  construction commencement date. It added that the project will cost approximately  RM307.37m, of which RM260.141m will be financed by Bank Pembangunan Malaysia Bhd  under the Bai' Istisna' facilities. The project, located next to the existing Gombak light rail  transit station and adjacent to the existing Middle Ring Road 2, comprised a  7-storey  terminal complex and related facilities. Zelan said GITT will be a major transportation hub to  take over the existing operations of the eastbound inter-city buses and taxis as well as intracity buses and taxis for Klang Valley. (Bernama)

Property: Temasek, Khazanah said to sign S$5bn of loans
According to a person familiar with the matter Temasek Holdings (TMSK) and Khazanah  Nasional Bhd, has signed S$5bn of property development loans. DBS Bank Ltd., OverseaChinese Banking Corp, United Overseas Bank Ltd. and  Maybank lent S$850m each, while  Australia & New Zealand Banking Group Ltd., Sumitomo Mitsui Banking Corp. and Bank of  Tokyo-Mitsubishi UFJ Ltd. each pledged S$500m, the person said, asking not to be identified  because details are private. The person added that CIMB Group has also committed S$100m.  Mohd Asuki Abas, a Khazanah spokesman, confirmed a loan was signed with eight banks.  Serena Khoo, a spokeswoman for Temasek, also said a loan was signed with the eight banks,  declining to confirm the amount. (Bloomberg)


Top Glove Q2 net profit soar
Top Glove Bhd's second quarter net profit for the period ended February 2012 more than doubled to RM53.46 million, thanks to higher glove demand, improved operational efficiency and cheaper latex prices. The stellar performance is pleasant turn of event for the group especially when it had been reporting lower profits for six straight quarters. In its filing to the stock exchange, Top Glove said average latex prices had been sliding to RM7.58 a kg from an average of RM8.14 a kg in the last six months. The high profits was also buoyed by RM13.3 million paper gain in foreign exchange compared to RM4.7 million net gain in the corresponding quarter a year ago. (Source: Business Times)

Khazanah sukuk priced at negative yield
Government investment arm Khazanah Nasional Bhd has issue the first Malaysian sukuk priced at a negative yield, following overwhelming demand from investors. Khazanah issued a seven-year benchmark exchangeable sukuk of US$357.8 million (RM1.09 billion) which is equity-linked to Parkson Retail Group Ltd (Parkson). The sukuk is issued via an independent Labuan incorporated special purpose company, Pulai Capital Ltd, and is exchangeable into the shares of Parkson. (Source: Business Times)

A controversial RM1.5bn loan using the retirement savings of workers will be used to finance Kuala Lumpur City Hall’s (DBKL) new low-cost housing schemes and to maintain existing projects that will be sold to unqualified buyers, the federal territories minister said. The Employees Provident Fund (EPF) is providing the first tranche of RM300m to a special purpose vehicle (SPV) undertaking the financing for those buying some 24,000 low-cost flats in the capital city. Datuk Raja Nong Chik Raja Zainal Abidin said DBKL “did not ask [for] money from the government” as it wanted to “avoid politics” in the scheme described as a “liquidation exercise.” The federal territories and urban well-being minister told reporters DBKL had decided against making direct loans to up to 35,000 city dwellers who are still renting and unable to borrow from banks as it needs funds for “future projects.” “When we sell these houses, we want the cash in hand so we can build new low-cost houses. But most importantly, we really need to improve maintenance,” he said, despite claiming DBKL has RM1.4bn in reserves. (Malaysian Insider)

The water talks between federal government and Selangor government will remain stalemated unless the latter is willing to separate the issue of the state water restructuring exercise and the construction of the Langat 2 water treatment plant, Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said. The Selangor government should not tie the approval to build the water treatment plant with the state water restructuring exercise currently being negotiated with the federal government. "Langat 2 is a different kettle of fish. It is an infrastructure project that needs to be done. If Selangor allows Langat 2 to be built, who operates it, we can talk later. No Issue." he said. (Financial Daily)

Honda Malaysia targets to sell 3,000 units of the All-New Jazz Hybrid by the end of this year and pledges to introduce more new hybrid models to the local market. The carmaker expects to sell 10,000 units of its hybrid series in 2012, managing director and CEO of Honda Malaysia Yoichiro Ueno said.(BT)

Practice Note 17 company, HDM-Carlaw Corp Bhd’s proposed restructuring scheme has been rejected by Bursa Malaysia. This FBM ACE Market listed company, will deliberate on the next course of action. It has one month to appeal on the decision. (BT)

Financially-troubled Silver Bird has been terminated as a distributor of Maxis prepaid cards. Silver Bird is seeking legal advice on the matter. Meanwhile, a Bursa announcement shows that 50,000 Silver Bird shares belonging to suspended MD Datuk Jackson Tan were forced sold at 21 sen/share. (Star)

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