20120814 1050 Malaysia Corporate Related News.

1MDB to pay Genting RM2.3bn for power assets
Genting, the country's top gaming company, is proposing to sell off its power business to 1Malaysia Development (1MDB) for RM2.3bn, the company said in a statement to the stock exchange yesterday. Genting and its indirect wholly-owned subsidiaries, Genting Power Holdings Ltd and Genting Power (M) Ltd, entered into conditional share sale and purchase agreements with Asia Trade Investment Ltd, Ong Tiong Soon @ Wang Chang Chuen and 1MDB for the disposal of their respective shareholding interests in Mastika Lagenda SB. (BT)

Sime Darby gets China's nod for trading business
Sime Darby has received the Chinese government's approval to set up the Hangzhou Sime Darby Trading Company Ltd to trade in vehicle parts and lubricating oil. It said, on Monday, that the RM2.99m registered capital of trading company would be held by its indirectly 60%-owned subsidiary Shanghai Sime Darby Motor Commerce Company Ltd. The company will be involved in the trading, wholesale and retail import and export of vehicle parts and accessories, lubricating oil, hardware tools, and electrical equipment parts. (StarBiz)

Media Prima plans RM100m to RM120m capex per year over three yrs
Media Prima has allocated RM100m to RM120m as capital expenditure (capex) per annum for the next three years, according to RAM Rating Services. It said on Monday the capex was to continue replacing its broadcasting and transmission equipment in progress to be digital-TV ready. "This is anticipated to be funded via internal cash, without requiring debt funding. As such, the group's balance sheet is expected to stay sturdy," it said. RAM Ratings reaffirmed the AAA(bg) rating of Media Prima's RM170m bank-guaranteed medium-term notes programme (2007/2012) (BG MTN), with a stable outlook. (StarBiz)

Germany's Seeburger makes KL its Asean regional HQ
Germany's business integration and managed file transfer solutions provider Seeburger is setting up its Asean regional headquarters in Malaysia to drive its strategic expansion into the region. Malaysia was chosen as its Asean hub due to lower operational costs, central geographic location, local information, its communication technology market's maturity and local potential. With the Kuala Lumpur headquarters, the move will facilitate its regional partners in sales support and technical implementation. Seeburger's partners in Malaysia, Time Engineering and Datamation (M) SB, will concentrate on providing its business integration suite. (StarBiz)

SP Setia proposes placement
Property developer SP Setia has proposed a placement of up to 15% of the issued and paid-up share capital of the company, to investors via a book-building exercise. The placement is expected to raise at least RM957.4m, assuming an issue price of RM3.19, and will be used for the acquisition and initial development cost of the Battersea Power Station project in London as well as working capital for ongoing projects. SP Setia also proposed to terminate its existing employees' share option scheme (ESOS), to be replaced by a new ESOS of up to 15% of its issued and paid-up share capital. (Financial Daily)

Malakoff begins Tanjung Bin power plant expansion in Johor
Malakoff Corp has commenced the operation of the Tanjung Bin Power Plant in Johor, which will become South East Asia’s largest coal-fired power plan upon completion in 2016. The plant is also expected to create a multiplier effect for development in Johor's Iskandar region. The first concrete pouring ceremony of its new 1000MW coal-fired power plant was held yesterday, the independent power producer said in a press statement. The project was awarded to Malakoff in June last year, and will ramp up Tanjung Bin's current generating capacity of 2,100MW. (Malaysian Reserve)