Malakoff seeks new 10-year extension for its Segari plant
Malakoff will put in a new bid to extend by 10 years a power contract on its 1,303MW combined cycle gas turbine (CCGT) power plant in Segari, Perak, due to expire in 2017. With no automatic extension, CEO Zainal Abidin Jalil said Malakoff has been told to put in a bid with “tariff as competitive as a new plant.” Malakoff is interested to meet the government’s requirement to actually show the capacity payment reduction as a basis for the extension. Malakoff, the lead for a consortium comprising Petronas Power SB and Mitsubishi Power SB, is also one of the shortlisted bidders for the 1,000MW - 1,400MW Prai CCGT power project. (Malaysian Reserve)
3 in Tawau green energy talks
1MDB and General Electric (GE) are among three companies currently in talks to develop the country’s first geothermal plant in Apas, Tawau. The third company in the venture, tagged at between RM750m – RM800m, is a Sabah-based green energy company which has inked a power purchase agreement with Sabah Electricity SB. Sources expected a joint agreement to be reached soon, possibly by end of the month. The renewable energy plant can generate a total capacity of 67MW, with 36MW generated under phase one and an additional 31MW under phase two. GE will provide the technical knowhow, global expertise, equipment and technology. (StarBiz)
PNB invests RM4.9bn to acquire properties in Australia, the UK
PNB has spent RM4.9bn to buy properties in Australia and London, said president and CEO Tan Sri Hamad Kama Piah Che Othman. PNB owns Santos Place in Brisbane and three office buildings in London. PNB is currently in talks to buy another building in London. PNB focused more on equity previously but is now putting a bigger focus on real estate which would bring in stable returns. (Malaysian Reserve)
Seda gets approval for additional 1% levy to renewable energy fund
Sustainable Energy Development Authority (Seda) has received the approval for an additional 1% levy to the renewable energy (RE) fund on top of the current 1% in electricity bills that will double up the fund size. However, CEO Badriyah Abdul Malek said it remains in the Government’s hands to increase the 1%. Currently, consumers in Peninsular Malaysia who use more than 300kWh a month are paying 1% levy to independent RE power producers. (StarBiz)
SapuraCrest Petroleum: Targets Brazil’s oil and gas sector with Seadrill
Group's CEO Datuk Shahril Shamsudin said Sapuracrest Petroleum is looking to expand its operation in Brazil's oil and gas services industry via its JV with Seadrill Ltd. SapuraCrest, had on Thursday received its shareholders’ approval for a joint venture with Seadrill. The JV agreement with Seadrill was in relation to the contract to charter and operate three units of pipe laying support vessels by Petroleo Brasileiro (Petrobras) worth US$1.4bn. Shahril said currently, the group has put in about RM5bn of bids. In any case, Shahril said he expects the merger with Kencana to increase the group's capability and balance sheet capacity to take on more challenging jobs such as the development of marginal oil fields. (Financial Daily)
Sime Darby: In oil palm biomass deal
Sime Darby Plantation Sdn Bhd has signed a memorandum of understanding (MOU) with the government and 18 other participants to develop oil palm biomass in the country. The MOU would see the possibility of a consortium agreement to develop the required knowledge and technology for oil palm biomass utilisation for sustainable bio-based products and practices. (Financial Daily)
Telekom Malaysia: Eyes 10% growth in SME subscribers
Telekom Malaysia (TM) aims to achieve 10% growth in its small and medium enterprise (SME) customers by end-2012, from 494,000 customers currently, said TM SME executive vice-president Azizi A Hadi. He added that TM expected to attract over 500,000 SME and generate more than RM1m in business transactions in the SME BizFest 2012. (Financial Daily)
Genting Bhd: RWS gets licences for 2 junket operators
The wait is finally over for Resorts World Sentosa, which Thursday received government approval for two junket licence applications it endorsed nearly two years ago. But even as Singapore allows the first licensed junket operators onto the gaming scene - which potentially fuels gaming revenue growth here - 12 other applications were rejected, signalling the government's stringent stance. This comes at a time when Singapore's Casino Regulatory Authority (CRA) is tightening junket regulations in a bid to make the industry, which transacts large sums of money, even more transparent and accountable. International market agents (IMAs), or so-called junket promoters, can extend credit to highrollers or organise trips for them to play at the casino in exchange for commissions. The CRA Thursday awarded two one-year licences to Huang Yu Kiung and Low Chong Aun, two Malaysian IMAs with an international clientele. But their licences with RWS, which took effect yesterday and are set to expire on Mar 21, 2013, may be revoked if the two fail to remain suitable. (The Straits Times)
SP Setia: 1Q FY2012 earnings up 19.3% to RM74m, on track for RM4bn sales for FY12
SP Setia’s earnings rose 19.3% to RM74m in 1Q FY2012 compared with RM62.04m a year ago due to higher selling prices for its products while it said it was on target to achieve its FY2012 sales target of RM4bn. Its revenue, however, declined 5.2% to RM491.58m from RM518.88m. Earnings per share were 4.01 sen compared with 4.07 sen. However, SP Setia said the group’s current quarter profit before tax of RM100.7m was RM8.3m lower than the preceding quarter ended Oct 31, 2011. This is partly attributable to slower progress of works during the festive season. (Financial Daily)
SP Setia: Set to launch Fulton Lane's second tower
SP Setia will soon launch Tower Two of its Fulton Lane development in the heart of Melbourne city business district. The company said Tower One that was premiered first in Kuala Lumpur in Jun last year saw strong demand from local buyers and had recorded steady sales with 80% of 291 apartment units taken up. It added that the new launch of Tower Two offers investors 487 units housed in a 45-storey block. (Bernama)
Oriental Holdings: Loh family passing the baton
The Loh family of Oriental Holdings is in a transition phase. A fund manager with a regional asset management company was quoted as saying that the baton is slowly being passed from the second generation to the third generation, in particular Loh Kian Chong. Kian Chong, 36 is the son Loh Kar Bee, the eldest and the only surviving son of the late Tan Sri Loh Boon Siew. Kian Chong’s name has been appearing regularly on Bursa Malaysia fillings of late. Since late Feb, he is deemed to have been accumulating Oriental shares in the open market. (Financial Daily)
Glomac: 3Q FY2012 net profit up 33%
Glomac’s net profit rose 33% to RM21.89m in 3Q FY2012 from RM16.52m a year earlier as the property developer’s lower cost of sales mitigated the impact of lower revenue and higher marketing, administration and finance expenses during the quarter. Its revenue fell 18% to RM145.29m against RM176.54m a year earlier due to the completion of several projects. Cumulative 9-month net profit climbed 32% to RM63.53m from RM47.96m a year earlier while revenue was down 8% to RM407.95m from RM443.74m. Glomac said it sold RM343m worth of properties during the 9 month period. (Financial Daily)
IGB: Source says retail REIT to raise up to RM700m
A source with direct knowledge of the deal said IGB Corp retail real estate investment trust (REIT) is looking to raise RM600 to RM700m from its initial public offering in Sept. The listing of IGB's retail REIT comprises of key assets such as Mid Valley Megamall and The Gardens Mall in the Malaysian capital, said the source who could not be identified as the deal has not been made public. The source added that the investment banking unit of CIMB Group is the lead banker for the deal. (Reuters)
Esso Malaysia: MSWG queries proposed deal
The Minority Shareholder Watchdog Group (MSWG) has raised the question of whether Esso Malaysia’s board has received competing offers for the company. MSWG wrote in its weekly newsletter that some of the issues of interest to non-interested shareholders (of Esso Malaysia) include whether Esso Malaysia has received other offers and, if so, the reason or reasons for not considering them. In recent announcements to Bursa Malaysia, Esso Malaysia said that subsequent to the fulfillment of all conditions precedent pertaining to the proposed acquisition of 65% of Esso Malaysia shares by San Miguel Corp (SMC) from ExxonMobil International Holdings Inc, SMC was extending the mandatory and unconditional general takeover offer to acquire the remaining 35% of Esso Malaysia shares at RM3.59 per share. (StarBiz)
Berjaya Retail: To spearhead RadioShack expansion
Berjaya retail plans to open the country’s first RadioShack store within 6 months and in other Asean countries within 2 years. Tan Su Peng, COO of Berjaya (Radio Shack) RS Sdn Bhd, the franchisee of RadioShack in Malaysia said after signing the master franchise agreement with RadioShack Thursday that Malaysia will the regional hub for the Southeast Asia RadioShack brand development. Following the agreement, Berjaya Retail will have the right to develop the brand in all 10 Asean countries which includes to right to sign on sub-franchisees to open RadioShack stores. RadioShack is a leading retailer of electronics product and services in the US. (Financial Daily)
Jaya Tiasa: To raise RM300m from share placement
Jaya Tiasa Holdings has proposed a new placement of 42.04m shares or 15% of its issued and paid-up capital to raise up to RM300m. The company also announced the distribution of 13.35m treasury shares as shares dividends on the basis of one treasury share for every 20 existing shares, and a proposed 2 for 1 bonus issue of new Jaya Tiasa’s shares. The company said the proposed placement will reduce the gearing of the group and thus providing flexibility for fund-raising as and when the opportunity arise. (Financial Daily)
Kobay Technology: To take over Lipo subsidiary, proposes SCR, repayment
Kobay Technology is acquiring full control of its 53.16% subsidiary Lipo Corporation via a selective capital reduction and repayment exercise. Under the corporate exercise announced on Thursday, Kobay requested Lipo to reduce the paid-up by cancelling one share for every RM1 paid by Lipo to shareholders as capital repayment. All entitled shareholders will receive a cash payment amounting to RM1.25 per Lipo share pursuant to the proposed SCR. Kobay will waive its entitlements to the proposed SCR. Upon completion of the proposed SCR, Lipo’s issued and paid-up share capital would be RM20.78m comprising of 20,782,750 Lipo shares, all of which will be held by Kobay. Kobay’s rationale was to integrate the management teams and operations of Lipo and its group of companies to achieve synergies from improved economies of scale arising from stronger buying positions with suppliers and more efficient resource allocation. Lipo said the board on Thursday deliberated on the SCR offer letter and decided to present the proposal to Lipo’s shareholders for their consideration. (Financial Daily)
Ireka Corporation: Secures RM45.8m fit-out hotel project
Ireka Corporation has secured a RM45.81m contract for the fit-out works of the Aloft Hotel, KL Sentral. It said on Thursday the contract, awarded by Iringan Flora Sdn Bhd, was for 13 months. Ireka said the contract was expected to contribute positively to the group’s earnings for FY2013. (Financial Daily)
Malaysia AE Models: Secures RM61.9m baggage handling project
Malaysia AE Models Holdings (Maemode) has secured a RM61.93m job for the baggage handlings system for the new low cost carrier (LCCT). It said on Thursday its unit, that Matromatic Handling Systems (M) Sdn Bhd, was awarded the contract by UEMC-Bina Puri Joint Venture on Mar 20. Maemode said the scope of works included the baggage handling system, auto sorting system for the proposed LCCT and associated works at the Kuala Lumpur International Airport. (Financial Daily)
APB Resources: Oleochemicals industry fuels growth
APB Resources hopes the oleochemical industry will continue to be its main revenue churner, given the rapid activity in the plantation sector. Since the slowdown in oil and gas industry over the last two years, the company has built a stronger track record in pressure vessel manufacturing for the oleochemical industry. Currently, the industry contributes over half of its revenue, up from about one-third before. Its COO and executive director Alex Tan said the plantation industry will continue to mature over the next two years due to massive investment and focus in the sector now. He added that the regional market, especially Indonesia and China, will still be strong and that's where the company will continue to be. (Business Times)
AIC Corporation: LTAT buys AIC shares
Lembaga Tabung Angkatan Tentera (LTAT) is the buyer of AIC Corporation’s 17.74m shares which were transacted in several off-market deals yesterday at an average price of RM1.40, said sources close to the company. It was a direct business transaction, with the seller being one of the substantial shareholders of AIC. These shares account for 10.2% of AIC’s paid-up capital of 173.87m shares. (StarBiz)
Metronic Global: Raymond Chan is now a substantial shareholder
Datuk Raymond Chan Boon Siew, who has been buying into several companies previously, has become a new substantial shareholder in Metronic Global. He surfaced with a 5.18% stake in the company by acquiring 32.9m shares via the open market and a married deal. On Monday, Metronic MD Dr Ng Tek Che told Bursa Malaysia that he had been approached by parties keen to purchase his interest in the company. Previously, companies in which Chan surfaced as a substantial shareholder had experienced significant share price movements like Harvest Court Industries and Naim Indah Corp. (StarBiz)
Digistar Corporation: To expand into Singapore, eyes regional broadcasting industry
Digistar Corporation will set up office in Singapore by Jul to take advantage of the growing broadcasting sector in the region. Its MD Datuk Lee Wah Chung said on Thursday that Asia is a booming market for the broadcasting sector and the company wants a piece of the pie. He added that Digistar would participate in any tendering process to upgrade the RTM broadcast system from analogue to digital. (Financial Daily)
Power: GE and Sabah firm said to be close to RM750m geothermal plant deal
1Malaysia Development Bhd (1MDB) and General Electric (GE) are among three companies currently in talks to develop the country's first geothermal plant in Apas, Tawau. The third company in the venture, tagged at between RM750m and RM800m, is a Sabah-based green energy company which has inked a power purchase agreement with Sabah Electricity Sdn Bhd. Sources familiar with the project told StarBiz that the companies were in the final stage of negotiations and expected to reach a joint agreement soon, possibly end of the month. The renewable energy plant, when fully completed, can generate a total capacity of 67MW, supplying electricity to Tawau's population of 398,000. The emission-free geothermal plant will tap natural hot fluids from the ground for steam production to drive the steam turbine generator; it will generate 36MW under phase one and an additional 31MW under phase two. (StarBiz)
The Kuantan High Court will deliver a decision next month on an application made by eight FELDA settlers to halt the listing plans of FELDA Global Ventures Holdings (FGVH). The settlers had last month won a temporary court order blocking the transfer of shares from their FELDA Investment Co-operative (KPF) to FGVH, a crucial step in the plan to list the plantation firm. (Malaysian Insider)
The Government has never exported anything to Israel via Felda, said Deputy Minister in the Prime Minister’s Department Datuk Ahmad Maslan. He refuted claims by Er Teck Hwa (DAP-Bakri) who had claimed on Wednesday that Felda was involved with two companies which had exported palm oil to Israel. He clarified that Felda had assisted Palestine by sending palm oil-based products via Ashdod Port in Israel. “We had no choice but to dock in Ashdod Port as it was closest to the Palestinian border. (Starbiz)
The government revealed “subsidies will be maintained” even if sugar refiners buy cheaper raw sugar instead of using sugar supplied under Putrajaya’s long-term contracts (LTC) with exporters. Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir told Parliament the LTC to buy raw sugar at US$0.26 per pound for the next three years “will not supply 100%” of sugar needs and refiners “have leeway to purchase from the open market. “The subsidy will remain,” he said when asked by Petaling Jaya Utara MP Tony Pua if the refiners “can profit” from the RM0.54 per kg subsidy even if they bought at a lower price from the open market. (Malaysian Insider)
Several consecutive global sugar surpluses are expected to trigger a collapse in sugar prices, agricultural commodities firm Wilmar International's managing director of sugar said on Thursday. "If we enter into this type of big surplus cycle, the sugar market price will have to reach a point where production will be reduced," said Jean-Luc Bohbot, adding the global sugar market was likely to be in surplus until at least 2013/14, assuming there are no major weather issues. (Reuters)
Thirteen food and beverage companies are no longer eligible for supply of refined sugar at subsidised prices due to their high consumption of the commodity, said International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir. He said the companies were not allowed to buy sugar from local refining companies since last year, adding that they could purchase sugar at long-term-contract (LTC) prices before subsidy or from the international market. Mukhriz said the Government made savings of RM2bn from the purchase of raw sugar via LTC prices from 2009 to 2011. Malaysia is also assured of sufficient sugar supply until 2014. He said various factors were being considered in calculating the subsidy for sugar, including yield loss, refining and sales cost, distribution cost by refinery companies as well as profit margins. (Starbiz)
The joint offerors for SP Setia Bhd, Permodalan Nasional Bhd (PNB) and Tan Sri Liew Kee Sin, will maintain the listing status of the company. In a joint statement yesterday, they said they were committed to ensure that the company would continue to be the premier listed property developer on Bursa Malaysia. (BT)
Bursa Malaysia Bhd plans to extend its eDividend facility to various common types of cash distributions and other cash payments made by public-listed companies to their shareholders. Under the current framework, public-listed companies are required to electronically pay cash dividend entitlements directly to shareholders' bank accounts instead of making payments via bank cheques. However, it doesn't cover other types of cash distribution. With eCash Payments, securities holders will be able to receive their payments within a shorter timeframe, in a secure environment and without the need for further action on their part. Bursa Malaysia has published a consultation paper seeking public feedback on the proposal, which can be viewed on its website. The consultation paper seeks the public's view on several proposals. The deadline for comments to the consultation is April 18. (BT)
Property developer Glomac Bhd is on track to achieving its sales target of RM500m for its financial year ending April 30, 2012. Glomac group executive chairman Tan Sri FD Mansor said in a media release yesterday: "We are riding on a healthy growth momentum. Not only have out results continued to excel, we chalked up property sales of RM343m in this 9-month period, well on tract to achieve our sales target of RM500m for the whole financial year." (Malaysian Reserve)
1Malaysia Development Bhd (1MDB) and General Electric (GE) are among three companies currently in talks to develop the country’s first geothermal plant in Apas, Tawau. The third company in the venture, tagged at RM750-800m is a Sabah-based green energy company which has inked a power purchase agreement with Sabah Electricity Sdn Bhd. The plant will have a capacity of 67MW and be able to supply electricity to Tawau’s population of 398,000. (Star Biz)
Perusahaan Otomobil Kedua Sdn Bhd (Perodua), the country's largest carmaker, is holding tight to its 188,000 passenger car sales target for the year, even though tighter lending guidelines imposed from January have hurt sales of its entry-level Viva model. Perodua sold some 180,000 vehicles last year, down from a record-breaking 188,600 vehicles in 2010. Its MD Datuk Aminar Rashid Salleh said the window to revise its target, if any, is normally done in the middle of the year. "As such, we will not change our targets for now." (The Sun Daily)
Johor Corp (JCorp), the asset-rich but debt-laden state investment arm, has received the green light from the Government to issue up to RM3bn in government-guaranteed bonds as part of its debt refinancing plan, sources said. The bonds would be issued “soon” by its arrangers CIMB and Maybank, well in time to meet the July 31 deadline when RM3.6bn of JCorp's existing bonds mature. Aside from having a government guarantee, the new bonds will be backed by assets owned by JCorp, worth the same amount as the bonds to be issued. This includes JCorp's 56% stake in Kulim (M) Bhd (which itself has a market value of RM3bn based on Kulim's current share price) as well as other real estate and plantations in the southern state that is directly owned by JCorp. “The bond issuance will clear up doubts about the financial health of JCorp. The group is clearly on the mend with some interesting proposals already announced,” said one investment banker. JCorp is to receive a further RM700m from the sale of palm oil plantations to Kulim, a deal that was recently approved by Kulim shareholders. (Starbiz)
Time Air Sdn Bhd co-founder and major shareholder Datuk Kamarudin Meranun has taken up another block of shares in mobile content provider mTouche Technology Bhd. Shareholding filings with Bursa Malaysia showed that Kamarudin, a co-founder of AirAsia Bhd, had acquired another 15m shares, bringing his total stake in the company to 11.53% or 26.25m shares. Sources familiar with mTouche said the company could likely see a major change in its shareholding structure as mTouche chief executive officer Eugene Goh was being pressured to settle a total of RM20m that he owed to OSK Capital Partners Sdn Bhd in margin. (StarBiz)
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