Maxis has held preliminary discussions to sell its Indian unit, Aircel, with bankers representing Russia's Sistema as it 'listens to offers' because of regulatory uncertainty and the probe against its founder T Ananda Krishnan and other top officials for alleged involvement in a telecom scandal in India. "Maxis sees itself as a long-term player in India, but will listen to offers, in the wake of regulatory and policy uncertainty. Bankers have brought many potential permutations and combinations for mergers and strategic alliances, including that of Sistema, to the company. The Malaysian company has held a few rounds of discussions with bankers representing Sistema but the discussions could be considered serious only if they reach a stage where the potential suitor begins a due diligence of Aircel's accounts," said an executive close to Maxis with direct knowledge of the discussions. The executive said Maxis was also upset with the way the investigating agencies had dragged Krishnan and other top officials into the probe surrounding the circumstances under which the Malaysian company acquired Aircel from serial entrepreneur C Sivasankaran. The Central Bureau of Investigation is probing Sivasankaran's charge that he was pressurised to sell Aircel to Maxis by former telecom minister Dayanadhi Maran and that the Malaysian company's subsidiary made a quid pro quo investment of Rs 550 crore (RM315m) in a DTH company owned by the Maran family in return for the ex-minister's role in the Aircel transaction. Maran and Maxis have vehemently denied all wrongdoing. (Economic India Times)
The Sime Darby Property Lifestyle Collection recorded a total gross sales value of close to RM800m since its launch in early April. This came on the back of a strong take-up of the wide ranging residential and commercial properties located in Sime Darby Property's 10 known townships in the Klang Valley and Nilai, Negeri Sembilan. The campaign saw an impressive 80% take-up within 2.5 month period, with some launches realising a 100% take-up rate. (Bernama)
Mudajaya Group Bhd and Gadang Holdings Bhd have received a letter of acceptance from Mass Rapid Transit Corp Sdn Bhd for jobs worth over RM800m each. Mudajaya said that the project was for the construction and completion of a viaduct guideway and other related works from the Dataran Sunway Station to Section 17 in Petaling Jaya. The company said that the works project is valued at over RM816.2m and works are expected to be physically completed by Feb-2016. In the meantime, Gadang Holdings would be involved in the construction of the same kind of viaduct guideway and other associated works from Kota Damansara Station to the Dataran Sunway Station. The job is valued at over RM863.3m. (BT)
The Penang government is seeking as much as 20% of the net reclaimed land from Eastern & Oriental Bhd (E&O), which holds the concession to reclaim up to 980 acres (396.5 ha) at the seafront Tanjung Tokong strip. Penang Chief Minister Lim Guan Eng said the state government has been in negotiations with E&O to obtain the additional land to settle the property developer's obligation to install traffic dispersal infrastructure. "Earlier, they were supposed to give us about 5% to 10% of the land but we negotiated and now we are getting 20%," said Lim. (Financial Daily)
Ahmad Zaki Resources Bhd's (AZRB) unit has secured a syndicated Islamic term financing-i facility of RM458.3m from three local banks to finance the development of a teaching hospital in Kuantan.AZRB said on Wednesday its unit Peninsular Medical Sdn Bhd had executed the financing agreements with CIMB Investment Bank Bhd, Bank Kerjasama Rakyat Malaysia Bhd and Bank Muamalat Malaysia Bhd. (Starbiz)
Khazanah Nasional Bhd and Temasek Holdings have kicked off their property alliance in the island republic with a S$7bn (RM17.6bn) central business district project. The Marina One development in Marina South is one of two big projects on six plots of land in Singapore to be undertaken under a joint venture called M+S Pte Ltd. The other project is at Ophir-Orchor. The joint venture stems from a land swap deal that Singapore and Malaysia agreed on in 2010 that included the development of the six parcels of land in Singapore. In return, Singapore gained six plots of Malayan Railway land - three in Bukit Timah and one each in Tanjong Pagar, Kranji and Woodlands. Khazanah has a 60% stake in M+S, while the rest is owned by Temasek. M+S' seven-member board is made up of representatives from Khazanah, Temasek and the private sector. At the ground-breaking ceremony yesterday, it was revealed that 60% of Marina One will be for office space, 35% residential, while the rest is for retail. The entire development will have a gross floor area of 341, 000sqm or 3.67m sf, and be completed in 2017. (BT)
The Naza Group of Companies, developer of the RM15bn KL Metropolis project in Kuala Lumpur, is bidding for more joint-venture developments with Syarikat Prasarana Negara. Yesterday, the group's flagship property development arm, Naza TTDI Sdn Bhd, inked its first joint-venture agreement with Prasarana, to build a 26-storey condominium tower on a 0.4ha site in Taman Tun Dr Ismail. The land cost for the project is around RM12m and it is expected to generate a gross development value (GDV) of RM153m. (BT)
Port Klang Authority (PKA) and Lagenda Erajuta Sdn Bhd formed a joint venture to give Klang a new landmark by developing a RM500m 1Gateway project in the royal town. Chairman Datuk Dr Teh Kim Poo said the project will be on a piece of 6.47ha of land in Taman Datuk Abdul Hamid along Persiaran Raja Muda Musa. It is expected that the project will be completed within five years. The commercial project will consist of two internationally branded hotels, office towers, Cineplex and shopping mall, he said. Official consent was received from the Public Private Partnership Unit of the Prime Minister Department. The landowner of the project is PKA. Teh said as part of the joint venture agreement, Lagenda Erajuta have to pay PKA a guaranteed minimum amount of RM45m for the cost of the land which belongs to PKA. (BT)
In a move to expand its apparel business, Hing Yiap Group Bhd plans to buy six companies, including baby clothes-maker Anakku Sdn Bhd and lingerie-maker Audrey Sdn Bhd, for RM245m. Hing Yiap, which manages brands such as Antioni, Bontton and B.U.M Equipment, will be buying the companies from Asia Brands Corp Bhd (ABCB). The deal will involve RM179.3m cash and 30.1m new Hing Yiap shares issued at RM2.18/share. The cash portion will come from bank borrowings and internal funds. The other companies it is buying are Mickey Junior Sdn Bhd, Asia Brands Global Sdn Bhd, Asia Brands Assets Management Sdn Bhd and Asia Brands HR Services Sdn Bhd. The six companies made a collective net profit of RM28.7m in the FY-Mar 2011. (BT)
Esso Malaysia has proposed to change its name to Petron Malaysia Refining & Marketing. (BMSB)
American International Group (AIG) will invest RM906m to expand its Malaysian operations to provide support services for its businesses worldwide. The operations will include those of AIG Global Services Sdn Bhd (AIGGS), an information infrastructure service provider; and Chartis Technology and Operations Management, a shared service centre for insurance and financial services and operations management. Chartis, a global property-casualty insurer, is a division of AIG. AIG's commitment to Malaysia is one of the 21 new projects worth RM20.4bn under the Economic Transformation Programme (ETP) unveiled by Prime Minister Datuk Seri Najib Razak in May this year. (BT)
CB Industrial Products Holdings Bhd's wholly-owned subsidiary Modipalm Engineering Sdn Bhd has been awarded a contract for the design, supply, installation and commissioning works of a continuous sterilisation palm oil mill with a 45-tonne per house capacity. CB Industrial said the contract was awarded by Indonesia-based PT Astra Agro Lestari TBK's subsidiary. (Bernama)
Timber producer Jaya Tiasa Holdings Bhd plans to raise RM332m from a proposed share placement exercise, of which RM226m will be used to build palm oil mills. About RM100m would be used to repay its borrowings and the remaining RM6.3m would be used for estimated expenses for the placement and bonus issue. (StarBiz)
Silver Bird Group Bhd has received a notice of demand from OSK Trustees Bhd, the trustee for the holders of the underwritten medium-term notes facility of up to RM30m, demanding for the payment of RM15m. This is together with interest thereon at the default rate of 1% per annum above the prevailing base lending rate quoted by Malayan Banking Bhd from April 6 until settlement in full. In a filing with the stock exchange, the bread and confectionary maker’s board said this would not have any financial or operational impact as such claims were envisaged to be restructured pursuant to the regularisation plan being formulated. (Starbiz)
Seeking more land from E&O
The Penang government is seeking as much as 20% of the net reclaimed land from E&O, which holds the concession to reclaim up to 980 acres at the seafront Tanjung Tokong strip. The state government has been in negotiations with E&O to obtain the additional land to settle the property developer’s obligation to install traffic dispersal infrastructure. E&O were supposed to provide 5%-10% of the land, but the state government will now obtain 20%, according to Penang Chief Minister Lim Guan Eng. (Financial Daily)
Prasarana aims non-fare revenue of 20%-30%
Prasarana aims to increase its non-fare revenue to 20%-30% in five years. The segment currently contributes about 7%, translating into RM30m of revenue. The company said that venturing into the property development business would open new and constant non-fare revenue income. Prasarana has identified other areas with development potential, including its landbank in Ara Damansara, Brickfields, Dang Wangi, Putra Heights and Taman Melawati. (Malaysian Reserve)
Puncak Semangat eyes Fibrecomm stake
Puncak Semangat SB, a company linked to Tan Sri Syed Mohktar Al-Bukhary, has made overtures to Tenaga Nasional for its 49% stake in wholesale broadband service provider Fibrecomm Network SB, according to industry executives. The remaining 51% in Fibrecomm is owned by Telekom Malaysia. (Financial Daily)
AirAsia: JV with Expedia takes off with strong regional presence
AirAsiaExpedia Inc, the JV firm between low-cost airline, AirAsia, and online travel company, Expedia Inc, has taken off to a flying start since its launch in July last year. A first of its kind partnership between a low-cost carrier and an online travel agent, the JV has served to strengthen both brands and extend the breadth and depth of their offerings to an expanded audience of travel shoppers across Asia. Over the past year, AirAsiaExpedia has launched two localised Expedia sites in Singapore and Thailand which offers travellers a selection of over 400 airlines, 150,000 hotels and build-your-own dynamic holiday packages. Underpinned by the monumental growth of tourism in Asia, AirAsiaExpedia plans to launch full-service Expedia sites in Asia over the next nine months, reinforcing its commitment and investment in this region. (Financial Daily)
Malaysia Building Society: Aims to open 10 branches this year
Malaysia Building Society (MBSB) targets to open at least 10 branches in line with the company’s business expansion. MBSB senior vice-president of retail business Azman Aziz said some branches will open soon in Kelana Jaya, Putrajaya as well as in Sabah and Sarawak. (Financial Daily)
KSK Group: To grow insurance business in Indonesia and Thailand
KSK Group plans to boost its insurance business in Indonesia and Thailand via organic and inorganic growth strategies and aims to reach the top 10 within the next 5 years. Its COO Joanne Kua said KSK, formerly known as Kurnia Asia, will focus on growing its general insurance business via PT Kurnia Insurance Indonesia (KII) and Kurnia Insurance (Thailand) Co Ltd (KIT). (Financial Daily)
UOA REIT: Raises RM1.3m from sale of property
UOA Asset Management Sdn Bhd, the manager of UOA Real Estate Investment Trust (UOA REIT), said the REIT trustee yesterday entered into a sale and purchase agreement for the sale of an office suite that raises RM1.33m net proceeds for the REIT to pare borrowings. The disposal of the 1,464 sq ft office suite at Level 7 of Menara UOA II for RM1.41m to Sipo Holdings Sdn Bhd would result in an estimated net capital gain of RM611,782 based on its net book value of RM727,539 as at end-2011. (Financial Daily)
SAAG Consolidated: Buys unit with Mara concession for RM110m
SAAG Consolidated is buying a private company poised to get a 25-year concession managing 5 Junior Mara Colleges for 110m via issue of new shares. SAAG said it plans to buy out beta Asset Sdn Bhd from Norhisham Mohamad Noor and Muhamad Nazrul Akmam Norhisham. The purchase consideration of RM110m – to be satisfied via 916.67m new SAAG shares issued at 12 sen a pieace – is based on discounted cash flow analysis of the projects and is still subject to new valuation reports to be done within 30 days. (Financial Daily)
Banking: India International Bank targets 5 branches in Malaysia
India International Bank Malaysia (IIBMB) is targeting to set up five branches in the first year of operations. The locally incorporated IIBMB is a JV between 3 Indian government-owned banks: the Bank of Baroda with a 40% stake, Indian Overseas Bank 35% and Andhra Bank 25%. The full-fledged commercial bank opened its first branch in Jalan Raja Chulan in downtown KL yesterday. IIBMB director M. Narendra said that in the next 3 years, they plan to have a minimum 10 (branches) and their medium-term plan is for 25 branches in another 5 years. He added that the bank aimed to have a presence not just in the capital but also in major urban areas where there was a sizeable number of Indians. Narendra said the bank had an internal target of RM550m in total loans and deposits in the first year of operations while in the next 3 years, this figure was expected to grow to RM2.5bn. (StarBiz)
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