UDA Holdings Bhd is still evaluating proposals of all parties for the redevelopment of its Pudu Jail land and wants the preferred bid to be the one that is in its best commercial interest. Even though the board has approved the proposal by Everbright International Construction Engineering Corp last year, the Finance Ministry (MOF) has directed UDA not to consider the company and instructed UDA to prepare a masterplan based on parcelling the land into three. Under Everbright's proposal, the China company will fund the entire development of the land that has been called Bukit Bintang City Centre (BCCC). Its proposal comes with a committed funding of US$1bn and Everbright will take the construction and financing risk, build a contiguous retail space of 2m sq ft, a car park and a convention centre and hand it over to UDA. (StarBiz)
Proposal to sell Mid Valley, Gardens malls
KrisAssets Holdings has proposed to sell Mid Valley Megamall, the Gardens Mall and their related assets to its parent IGB Corp for RM4.6bn. It said in a filing with the stock exchange that the disposal would be satisfied via cash and the issuance of 3.4bn units in IGB REIT, the retail real estate investment trust that the latter plans to list on the Main Market of Bursa Malaysia. It also proposed an offer for sale of 670m consideration units by Mid Valley City Gardens Sdn Bhd via the initial public offering (IPO) of IGB REIT. The company added that it wanted to distribute 2.73bn consideration units, as well as the remaining cash proceeds from the sale of the two properties and the IPO to its entitled shareholders at a date to be determined and announced later. (StarBiz Week)
Bintulu Port to fund Samalaju deepsea port project via equity, debt
Bintulu Port Holdings Bhd (BPHB) will fund the development of the RM1.8bn Samalaju deepsea port project through a combination of equity and debt. Chief executive officer Datuk Mior Ahmad Baiti Mior Lub Ahmad said the equity to debt ratio would be announced soon after it was finalised with BPHB's major shareholders. “We have discussed the proposed funding with the three major shareholders, Petroliam Nasional Bhd (Petronas), Sarawak State Financial Secretary and Kumpulan Wang Persaraan (KWP),” he told reporters after the company AGM here yesterday. Petronas, Sarawak State Financial Secretary and KWP have 32.79%, 30.68% and 9.52% stakes respectively in BPHB. (StarBiz Week)
South Korea's Posco keen to secure ETP projects
South Korean steelmaker Posco Group, which operates an electrolytic galvanised iron (EGI) plant in Port Klang, is targeting more projects here. The group, which has a market capitalisation of USD60bn (RM184.4bn), planned to bid for power and petrochemical plants, said Posco E&C executive vice-president Lee Dong-Man. Lee said Posco was also looking to bid for projects to build integrated steel mills and EGI facilities. EGI is used for producing engines for power generators and electrical appliances. (BT)
Pengerang folks can expect windfall via Rapid project
Coming on the heels of a RM15,000 windfall per family for Federal Land Development Authority (Felda) settlers, folks in Pengerang can also expect some good news. The RM60bn refinery and petrochemicals integrated development (Rapid) project in Pengerang, south-eastern portion of Johor, will possibly involve land acquisitions of nearly 6,000 acres. State oil company Petroliam Nasional (Petronas) is the main lead for the Rapid project. It is learnt that the total compensation can be as high as RM130m or more. The compensation may include the giving away of land and cash incentives by the Johor state government. (Malaysian Reserve)
SP Setia: Expands footprint in Penang
SP Setia is on the lookout to acquire more strategic pieces of land in Penang in a bid to extend its footprint in the state. Presently, it is looking to buy 3 parcels of land on the island by the middle of the year. The company, which currently boasts an undeveloped landbank totalling close to 40 hectares in the state, is in the final stages of negotiation to acquire land in Tanjung Bungah and Jelutong. SP Setia Property (North) general manager Datuk S.Rajoo told Business Times the company is eyeing two parcels of land in Tanjung Bungah totalling 10.2ha while the parcel of land in Jelutong measures 3.6ha. He said they are hoping to conclude the land acquisition deals by the middle of Jun and are planning mixed residential housing projects on the plots. (Business Times)
MMC Corporation: Malakoff buys stake in Bahrain power, desalination plant
MMC Corporation 51%-owned subsidiary Malakoff International Ltd (MIL) has acquired the entire issued and paid up capital of IP Middle East Holding Co Ltd (IPME) from International Power Holdings Ltd (IPR) for US$113.4m (RM348m). MMC Corp said that as a result of the acquisition, MIL will hold an indirect 40% equity interest in Hidd Power Company B S C (c) Bahrain ("HPC") through IPME, which owns a 57.1% equity interest in IPSUM Hidd Holding Co Ltd, which in turn owns a 70% equity interest in HPC. HPC is the owner and operator of a 'Build, Own and Operate' power generation and water desalination plant in Bahrain. The filing confirmed a report by The Edge Financial Daily on May 3, which said that Malakoff Corp had acquired a 40% stake in Hidd Power Co (HPC), a power and water generation provider located in Bahrain. The deal was signed in Bahrain on Monday, citing reports by the Gulf Daily News and the Bahrain News Agency. (Financial Daily)
Axiata Group: Zooms in on targets
Axiata Group is on track to achieve its headline key performance indicators (KPIs) this year. Previously, Axiata missed all of its headline KPIs for 2011, including on revenue (KPI: 10% growth; Actual: 5.3%) and on EBITDA (KPI: 10.3%; Actual: 1%). The company said it missed its headline KPIs due partly to foreign exchange losses and changes in revenue mix. It was also partly due to the slower-than expected growth in its Indonesian operations via its 66.7%- owned PT XL Axiata Tbk. The slower growth by XL was partly due to a price cut initiated by one of its rivals early last year. This year, Axiata – under its headline KPIs –aims to achieve revenue growth of 5.3%, growth in EBITDA of 1.8%, and ROCE of 11.3%, among others. It also plans a RM4.4 bn in capital expenditure this year. (Business Times)
MAS: Upgrades facilities to meet rise in business class guests
Malaysia Airlines System (MAS) is upgrading its cabin baggage policy and golden lounge waiting room facilities to cater for the anticipated increase in business class passengers. Golden lounge manager Mohd Husaini Ariffin said the improvement included major renovation at the lounge, from May 9 to Jun 18, with the addition of new features such as sports bar, kids room and games room. He said the improvement is part of the airline's preparation to receive its first Airbus A380, which will contribute a higher number of business class passengers, as well as its entry into the oneworld alliance by year-end. Among the requirements of oneworld alliance was the sharing of golden lounges between its members as well as check-in counters and expanded services such as more facilities at the waiting room and bigger cabin baggage capacity per passenger. Mohd Husaini said after the renovation, the seat capacity for business class in the golden lounge would increase to 320 passengers from 230 currently while that for first class would reduce to 50 passengers from 90 at present. (Bernama)
AirAsia: Thai AirAsia’s IPO to double its fleet
The impending listing of Asia Aviation Plc, a holding company that owns 51% of Thai AirAsia (TAA) on the Stock Exchange of Thailand will help raise the proceeds to double TAA’s fleet size and grow its network. The IPO of Asia Aviation is expected to take place in July and media reports, quoting a filling with the Thai Securities and Exchange Commission, said the company may raise US$150m (RM460.5m) to US$200m from the issuance of 750m new shares representing a 15.46% stake. Asia Aviation will in turn use the proceeds to subscribe for a rights issue at TAA, hence injecting new funds into the latter for expansion. TAA communications executive Topaz Subunruk said about 1.5bn baht (RM148m) will be used to finance the purchase of new aircraft in the immediate term. (Financial Daily)
AirAsia, MAS: Pact vital for open-sky challenge
Malaysia Airlines System (MAS), AirAsia Bhd and AirAsia X Sdn Bhd must join forces to face the challenges when the Asean open-sky policy comes into force in 2015. AirAsia X chairman Tan Sri Rafidah Aziz said all airlines in the country need to strengthen themselves to handle the upcoming competition. The Asean open sky agreement allows regional air carriers to take unlimited flights to all 10 Asean countries. She said the collaboration has nothing to do with the share swap, adding that it is about collaborating for the joint purchases and joint maintenance that will inevitably lead to lower costs and improved efficiency for customers and passengers. (Business Times)
Malaysian Bulk Carriers: To scale back dividends, buys new vessels
According to a joint statement by Malaysian Bulk Carriers (Maybulk)’s executive chairman Teo Joo Kim and CEO Kuok Khoon Kuan, the company plans to scale back dividends in order to acquire vessels during the time when the prices are low. In addition, the duo added that this would mean the company would be operating under tough conditions and would therefore need considerable resources to face the challenges ahead. (Financial Daily)
Land & General: Eyes land worth RM1bn GDV
According to Land & General (L&G)’s MD Low Gya Teck, the company is currently in talks with several owners of prime land in the Klang Valley to either conduct joint developments or acquire the land, with potential GDV of RM1bn. However, he did not disclose the location of land in the interview with The Edge Financial Daily but conceded that the L&G is seeking land in mature prime areas in Klang Valley due to the marketability factor. He said if everything goes well, the talks will be concluded in the next few months. (Financial Daily)
Ho Hup Construction: Case goes to Federal Court this week
The long drawn out legal tussle over the development rights of Ho Hup Construction Company’s 60 acre (24ha) land in Bukit Jalil will go before the Federal Court this week. The company is seeking to overturn a decision by the Court of Appeal which prohibits the company from carrying out any plans on the disputed parcel of land. The dispute revolves around a joint development agreement (JDA) on the 60-acre plot, which was signed in Mar 2010 between Ho Hup’s subsidiary, Bukit Jalil Development Sdn Bhd and Malton’s unit Pioneer Haven Sdn Bhd. (Financial Daily)
Kimlun Corporation: Gets RM148.54m apartment contract in Shah Alam
Kimlun Corporation secures RM148.54m apartment construction contract from Esquire Corner Sdn Bhd in Selangor. It said that it had received a letter of award from Esquire for the construction of apartments and ancillary buildings in Shah Alam, Selangor. The project is expected to contribute positively to the earnings and net assets of Kimlun group for the financial years during the contract period. Kimlun said the construction was expected to be completed by Sept 2013. (Financial Daily)
Puncak Niaga: Tipped to land marginal oilfield job
Puncak Niaga has emerged as one of the strongest contenders to bag marginal oilfield projects, together with a foreign partner, when Petronas unveils its next batch of winners to develop the oilfields. According to Upstream online, Puncak has tied up with London-based Nio Petroleum Ltd, and the duo are among the 22 companies short-listed by Petronas for a risk service contract (RSC) to develop marginal oilfields. (The Edge Weekly)
Xidelang Holdings: Exploring dual listing in Hong Kong
Xidelang Holdings (XDL) said it is exploring the possibility for seeking a dual listing on the Hong Kong Stock Exchange. In a filing to Bursa Malaysia Securities on Friday, Xidelang said it had engaged Dow-Capital, a financial advisory company in Hong Kong, to evaluate the possibility of dual listing. However, the company said it has no intention to delist from Bursa Malaysia Securities Bhd. (Financial Daily)
Tambun Indah Land: Seeks JV partners for Klang Valley projects
Tambun Indah Land is looking for JV partners to spread its wings out of Penang where its flagship project is based. MD Teh Kiak Seng said that the company would like to expand into the Klang Valley, but its focus will be more on the outskirts like Kajang and Rawang where there is still plenty of land. He added that the company is in several discussions with landowners for this purpose, but nothing has been firmed up. For now, Teh said he and his team are focusing on their flagship project, the Pearl City integrated township in Simpang Ampat, which will have a GDV of more than RM3bn when completed. The mixed residential and commercial township sits on a 1,001-acre site which is expected to be fully developed by 2020, complete with a business park which will house schools, hotels and hypermarkets. (StarBiz)
Kumpulan Jetson: Gets US$6.8m hospital job in Cambodia
Kumpulan Jetson has secured a contract worth US$6.8m to build a hospital in Phonm Penh, Cambodia. It said on Friday that its unit Jetson Construction Sdn Bhd had entered into an agreement with Nokor Tep Foundation in Cambodia to build the hospital. It said the project was tentatively expected to commence in mid-2012 and to be completed within 24 months from the date of commencement. (Financial Daily)
Banking: Changes imminent in regulation of financial services
Industry sources said that Bank Negara Malaysia was in discussion with bankers recently to get their views on the proposed Financial Services Bill (FSB) and Islamic Financial Services Bill (IFSB). It is understood that the bills, when passed, will result in a change in the regulation and supervision of financial services groups. According to a source, these changes will involve the obligation of a company to apply to become a financial holding company. This will be triggered when there is intent to own more than 50% shareholding in licensed institutions. (The Edge Weekly)
Construction: South Korea's Posco keen to secure ETP projects
South Korean steelmaker Posco Group, which operates an electrolytic galvanised iron (EGI) plant in Port Klang, is targeting more projects here. Posco E&C executive vice-president Lee Dong-Man said the group, which has a market capitalisation of US$60bn (RM184.4bn), planned to bid for power and petrochemical plants. Lee said Posco was also looking to bid for projects to build integrated steel mills and EGI facilities. (Business Times)
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