20120817 1052 Malaysia Corporate Related News.

Affin Holdings announced that it has received approval from Bank Negara Malaysia to start negotiations with DRB-Hicom and Khazanah to acquire an equity stake in Bank Muamalat. The negotiations are to be completed on or before 31 Dec 12. (BMSB)

WCT Bhd has been awarded RM1bn highway project from the Oman government via a joint venture with Oman Roads Engineering Company LLC.The company said the Ministry of Transport and Communications of Oman had accepted its tender for the construction and completion of Batinah Expressway, Package 2 in Oman. The scope of works comprises the construction and completion of a 44.75km dual four lanes expressway, and is expected to complete in 36 months.The joint venture with Oman Roads are in the ratio of 80:20.

Effective 1 Sep 2012, Amir Hamzah Azizan, 45, will step down as CEO of Petronas Dagangan and will be replaced by Aminul Rashid Mohd Zam Zam, 47. Amir will remain as a board member. (BMSB)

Perdana Petroleum is looking into the possibility of buying more vessels as it feels that the market is now slowly moving into the right direction, said its managing director, Shamsul Saad. The company presently has 14 vessels which comprises of eight units of anchor handling tug supply (AHTS) vessels, two 5,000 BHP AHTS, six mid-size AHTS between 10,000 and 12,000 BHP and six maintenance & hook-up work vessels being four work barges and two workboats. “We are working closely with Dayang Enterprise for our long term business model. We are aiming to participate in more long term charters towards the year end,” said Shamsul. (StarBiz)

Perdana Petroleum shareholders yesterday approved the company's proposed disposal of its 26.9% stake in Petra Energy to Wah Seong for RM97m or RM1.68/share. (BMSB)

Khazanah Nasional will unveil the names of its remaining 3 non-core units where it will either reduce its stakes or divest them entirely in the next 3 to 6 months. Its managing director, Tan Sri Azman Mokhtar, said the three had been identified and would go through an evaluation phase before an announcement could be made. "We expect to announce it during announcement of the first-quarter financial results in January next year and by that time we will able to provide more details. “The 3 companies could come from any sectors," he told reporters. (Bernama)

Reliance Industries Ltd, is in talks with British oil giant BP to buy its petrochemical plant in Malaysia. "Serious discussions are happening," The Economic Times reported, quoting an investment banker with direct knowledge of the matter. It said the meeting between Reliance Industries and BP officials with regard to the purified terephthalic acid (PTA) plant in Kuantan, Pahang, with an annual capacity of 610,000 tonnes, was held in Hong Kong. BP Malaysia's manager for communication and external affairs Zukifli Othman, however, said the company never comments on speculation. PTA is the key raw material for the manufacture of polyester for fabric, as well as audio and videotapes, and in making plastic drink bottles. BP kicked off a US$38bn (RM118.5bn) divestment programme in 2010 to reposition itself as a smaller company with the focus on promising markets, and raise cash to shore up investor confidence, following the oil spill in the Gulf of Mexico. Since then, it has divested assets worth US$24bn (RM74.8bn). (Economic Times India)

Government: Khazanah plan to divest or reduce stakes in 3 companies in 3-6 months
Khazanah Nasional will unveil the names of its remaining 3 non-core units where it will either reduce its stakes or divest them entirely in the next 3 to 6 months. Its MD, Tan Sri Azman Mokhtar, said the three had been identified and would go through an evaluation phase before an announcement could be made. He said Khazanah expects to announce it during announcement of the first-quarter financial results in January next year and by that time we will able to provide more details. (Bernama)

Panasonic Malaysia is targeting at least 1,000 subscribers a month for its private branch exchange (PBX) solutions, following its tie-up with Maxis and Atrixx International. Panasonic Malaysia, Maxis and Atrixx yesterday signed a collaborative arrangement agreement to provide cost-saving benefits on telephone charges and office communication when using a Panasonic PBX, Maxis Global System for Mobile Communications (GSM) Line and Atrixx GSM Gateway. Lee said under the collaborative deal, Panasonic will provide the PBX system which connects to normal fixed voice service and Atrixx will provide a GSM Gateway which bridge Maxis GSM wireless to a Panasonic PBX system. Maxis will offer a GSM Line promotion via its Maxis Fixed Line Saver (FLS) with Unity Hotline, where normal fixed voice service is extended via Maxis GSM network. Lee also said, the service aims to provide small medium industries and small and medium enterprises (SMEs) with value-added cost-saving benefits through this unique collaboration. (BT)

KNM Group announced that its Heads of Agreements with Zecon and Gulf Asian Petroleum dated July 25, 2011 have duly lapsed and no financial close have been reached as at to-date. In filings with Bursa Malaysia, it said no final definitive agreements have been executed and there are no costs to be borne by either party. (StarBiz)

Alam Maritim has been awarded a contract for the provision of shore approach pipeline installation work. It said the 30-day contract is estimated at RM50m on a lump-sum basis. (Bernama)

1Malaysia Development Bhd (1MDB) plans to raise as much as US$2bn in an IPO of its power assets. The IPO might take place in the first quarter of next year. 1MDB has spent RM10.8bn purchasing the electricity generation plants. Proceeds would be used to repay debt. (Bloomberg)

Admuda Sdn Bhd, which is 60% owned by Brahims Holdings Bhd, has raised its investment to RM150m from RM130m previously to set up a sugar refinery in Sarawak. "We're borrowing about RM130m from Maybank. The money is to build the sugar refinery in Kuching and working capital to import raw sugar," said Admuda chairman Tan Sri Abdul Aziz Shamsudin. (BT)

Malaysian Biotechnology Corp Sdn Bhd (MBC) has appointed Professor Emeritus Datuk Dr Zakri Abdul Hamid as chairman effective Aug 15. Dr Zakri is currently the Science Adviser to the Prime Minister. (BT)

Felda Global Ventures: Sets sights on Sarawak Plantation
Financial executives familiar with the deal said Felda Global Ventures Holdings (FGVH) is eyeing a meaningful stake in Sarawak Plantation, controlled by Datuk Abdul Hameed Sepawi and the state government. FGVH, the executives said, is seeking to grow its landbank and production of crude  palm oil via the acquisition and is looking at buying more than the 30.39% that Abdul Hameed holds in Sarawak Plantation to grow its plantation acreage. (Financial Daily)

MISC: Back to profit in 2Q FY2012
MISC  is back in the black in the  2Q2012, after two consecutive quarters of  losses. The company's net profit rose 209% to RM380.95m on the back of RM2.49bn revenue in the same quarter of the previous year. MISC said it had recorded losses in the last two quarters due to provisions made in respect of its planned cessation of its the liner related business. It said that group revenue from continuing operations of RM2.48bn had declined slightly by about 4%, compared with the previous corresponding period. This was largely attributed to lower earning days and freight rates in the chemical and petroleum businesses. Despite lower revenue, group profit before tax from continuing operations has increased to RM458.5m from RM379.6m in  2Q FY2011 driven mainly by higher contributions from the offshore and tank terminal businesses. (StarBiz)

DRB-Hicom: Move to pare down borrowings to acquire Proton and Pos Malaysia
DRB-Hicom seems to reverse its acquisition trail as the conglomerate sells its financial services assets after taking Proton Holdings private in addition to buying an equity interest in Pos Malaysia. DRB-Hicom announced on Thursday that Affin Bank had obtained Bank Negara Malaysia’s approval to start negotiation to buy the group’s stake in Bank Muamalat Malaysia, in which it holds 70% equity interest. (Financial Daily)

Sime Darby: Files RM863m suit in Qatar
Sime Darby has filed a 1bn Qatar riyals (RM863m) legal suit against Qatar Petroleum (QP) in relation to an engineering project offshore in Qatar undertaken by the Malaysian conglomerate’s wholly-owned subsidiary, Sime Engineering Sdn Bhd (SDE). Sime Darby told Bursa Malaysia that on Aug 15, SDE had filed a statement of claim at the Qatar Court against QP. The claim was regarding the outstanding involves, compensation, performance bonds and additional costs in relation to the engineering project, pursuant to a contract signed by both SDE and QP on Sep 27, 2006. (StarBiz)

Delloyd Ventures: Challenging year ahead
Delloyd Ventures expects the operating environment for its automotive business to remain challenging for FY2013, due to higher raw material and personnel costs. Its group MD Datuk Seri Tee Boon Kee said overhead cost is expected to increase and put a dent on margins due to the new minimum wage policy. Nevertheless, he said Delloyd Ventures will strive to minimize higher costs by improving efficiency and increasing sales volume. (Financial Daily)

Glove: Medical device makers may get tax breaks
The government will consider giving tax breaks and non-fiscal incentives to rubber glove, condom and catheter manufacturers as the industry moves away from being labour intensive to invest in advanced technologies and generate a high multiplier effect on the economy. Deputy International Trade and Industries Minister Datuk Mukhriz Mahathir said the rubberbased medical devices industry is one where they can consider according a second round of tax holiday or investment tax allowance. (Business Times)

Glove: Thailand, Malaysia and Indonesia agree to cut rubber shipments
Thailand, Malaysia and Indonesia agreed to cut rubber exports by 300,000 metric tons to boost prices, Thai Deputy Minister for Agriculture and Agricultural Cooperatives Nattawut Saikuar said. Futures advanced. Thailand will make the biggest reduction, he told reporters. The countries will also cut down aging trees on an area of about 100,000 hectares, said the International Tripartite Rubber Council. (Bloomberg)