20120904 1016 Malaysia Corporate Related News.

ZAQ Construction Sdn. Bhd., the managing contractor for the Asia Petroleum Hub (APH) project, has filed a suit against: 1)  CIMB, 2) Lim San Pen, the receiver manager appointed by CIMB, and 3) Muhibbah Engineering. ZAQ is alleging Muhibbah's involvement in the APH restructuring scheme. Recall that the latest development on the APH saga in June 12 was that the restructuring scheme was called-off, as per Muhibbah's announcement that CIMB, the sole lender for the project, was withdrawing its support for the scheme. Management is of the view that the claim brought by ZAQ is "frivolous" and it will defend the case. The amount claimed against each of the defendants is unknown at this juncture. (BMSB)

Gas Malaysia Bhd has officially secured contracts for more than 80% of the additional natural gas volume that is coming on stream next year. Managing director Datuk Muhammad Noor Hamid said most of the 40 mmscfd increased allocation by Petronas next year had been allocated for new customers and existing ones that were undertaking expansion programs. While the additional gas will be sold at market rates instead of the subsidised price, Gas Malaysia said natural gas is still a very efficient fuel and the economies of gas is still cheaper than alternatives as users do not need to hold inventory.  (Star Biz)

The government is reviewing the palm oil export tax structure to remain competitive in the industry,  Deputy Plantation Industries and Commodities Minister Datuk Hamzah Zainudin said. "We need to be fair to all industry players and we need more time to consider all the factors before making any announcement," said Hamzah. He declined to disclose when the government would announce the new tax structure. (Bernama)

Come Sept 18, Bursa Malaysia and the  Singapore Exchange will be the region's first two exchanges to connect through the Asean Trading Link, the share trading system envisioned to eventually link 10 stock markets in the Southeast Asian region. This will be followed by the  Stock Exchange of Thailand. (Financial Daily)

Tenaga Nasional Bhd will increase its Employees Provident Fund (EPF) contribution for its workers aged between 56-60 years old. The utility company would also raise the retirement age of its staff from 55 years to 60 years old. Tenaga will be the first government linked corporation (GLC) to do so following the passing of the Minimum Retirement Age Act earlier this year. However, the quantum of the increase has not yet been decided. Currently Tenaga contributes 12% to its employees EPF accounts. (The Star)

Celcom continues to see growth in its voice segment even as it expands its non-voice operations. "We are possibly the only telco in Malaysia and one of the few in the world to see growth in the voice segment. This was driven by our new pricing strategy and contributions from the various products we have launched," said chief executive Datuk Seri Mohammed Shazalli Ramly, who believes that Celcom can sustain its mild growth in the segment. He attributed the sharp increase to in the minutes of usage to Celcom's new dynamic billing system, which allows the group to optimise its billing strategy. Unlike others that charge in one-minute or 30-sec blocks, Celcom is charging fees in 10-min blocks. He noted that only 20% of Celcom's customers use smartphones, although smartphone ARPU is almost double that of non-smartphone users. (Financial Daily)

Puncak Semangat has ditched plans to acquire Jaring Communications but has raided the government broadband company for top executives including chief executive Nik Abdul Aziz Nik Yaacob ahead of launching its 4G or LTE service next year, sources said. An industry source confirmed Nik Abdul Aziz’s departure from Jaring effective October, saying that several other Jaring executives are expected to join the exodus. Puncak Semangat is expected to start its LTE/4G operations in November but only roll out its services by the middle of 2013. The Edge reported last month that Puncak Semangat had made overtures to Tenaga Nasional for its 49% stake in wholesale broadband service provider Fibrecomm. “Puncak Semangat is said to have already made the offer to Tenaga to buy the stake,” said an industry executive. However, the exact pricing of the stake is not known at this point in time, the business weekly said. The remaining 51% in Fibrecomm is owned by Telekom Malaysia. (Malaysianinsider)

Zelan seems to have ended a dry spell on securing sizable contracts. The group announced it was awarded a RM215.2m contract by  Mudajaya Corp. The latest contract is for engineering design and construction works of the Tanjung bin 1x1,000MW coal-fired power plant project in Johor. The works are expected to be completed in August 2014. (Financial Daily)

Perdana Petroleum yesterday completed the divestment of a 26.9% equity interest in  Petra Energy to  Wah Seong for RM97m or RM1.68/share. (BMSB)

Singapore-listed Nam Cheong Ltd clinched two contracts for the sale of two Accommodation Work Barges (AWBs) worth US$59m (RM183m) to Perdana Petroleum Bhd.  With these contracts, the orderbook of Nam Cheong, Malaysia’s largest Offshore Support Vessel shipbuilder, has hit a high of RM1.06bn in contract value, surpassing last year’s figure of RM757m. (BT)

KKB Engineering Bhd’s subsidiary, Harum Bidang Sdn Bhd, yesterday signed a two-year contract, worth about RM74.4m, with CMS Infra Trading Sdn Bhd (CMSIT) for the supply of concrete-lined mild steel pipes and mild steel mechanical coup-lings. KKB said in a statement a written agreement will be entered into between Harum Bidang and CMSIT in due course. CMSIT is a subsidiary of Cahya Mata Sarawak Bhd, a major shareholder of KKB. (BT)

The new  National Automotive Policy (NAP), which aims to liberalise the local automotive industry, will encourage an open market and allow greater availability of vehicle models with the latest technologies in the country, said Malaysia Automotive Institute (MAI) chief executive officer Madani Sahari. Madani said the NAP would allow greater market forces through its policies to liberalise the local automotive sector, such as the emphasis to make Malaysia a regional, if not global, energy efficient vehicles (EEVs) hub. (StarBiz)

The proposed privatisation of Glenealy Plantations (M) Bhd has encountered opposition from a group of minority shareholders, led by Patrick Low, who are unhappy with the price offered by its major shareholder to take the company private. The group argued that the offer price was "too low" vis-a-vis the present market value of plantations land and unplanted land that Glenealy has in its portfolio. The group claimed that the offer price of RM7.50 per share was based on the valuation of RM25,000 per planted hectare of land, which it said was totally unrealistic with today's market. Recently transacted prices were close to RM70,000, they added. (StarBiz)

PTP attempts to block sale of APH
Tan Sri Syed Mokhtar Al-Bukhary is blocking a plan by CIMB Group Holdings to sell the financially-troubled Asia Petroleum Hub SB (APH) in Johor. Port of Tanjung Pelepas (PTP), which is 70% owned by Syed Mokhtar’s MMC Corp, is opposed to CIMB;s proposal to sell APH, and has made its objections known to the bank-appointed receivers of the failed petroleum venture, PwC. (Financial Daily)

Parkson pays RM98m for Melaka land
Parkson Holdings yesterday agreed to pay RM98m for 64.6% of a 23.22-acre (9.38ha) site in Melaka from a company effectively controlled by its major shareholder, Tan Sri William Cheng. Parkson said Megan Mastika SB has agreed to buy 6ha of the 9.38ha land in Melaka earmarked for a mixed development from Dimensi Andaman SB. Cheng controls Dimensi Andaman’s holding company, Ayer Keroh Resort SB, which is currently carrying out reclamation works on the tract. (Financial Daily)

IGB REIT’s USD266m IPO oversubscribed
The institutional tranche of IGB REIT’s USD266m (RM827.26m) listing is already oversubscribed, said two sources with direct knowledge of the matter, signaling strong demand for the deal. The deal is set to be Malaysia’s fourth largest IPO this year and the REIT may become Malaysia’s largest REIT with a possible market value of up to RM4.25bn, topping Pavilion REIT’s RM4.05bn. (Financial Daily)