20120907 1107 Malaysia Corporate Related News.

WCT has proposed, in sequence, a (i) 3-for-20 bonus issue of 180.3m new shares, (ii) 1-for-5 free bonus warrants (warrant D) totalling 240.3m, and (iii) an increase in the authorised share capital from  RM800m, comprising of 1.4bn shares and 1bn preference shares (10sen par) to RM1.1bn, comprising 2bn shares and 1bn preference shares. These exercises are expected to complete in 4Q12. (BMSB)

The Malaysian consortium comprising SP Setia Bhd, Sime Darby Bhd, and the Employee Provident Fund  brushed aside scepticism and negativity by outlining an anticipated time line for the  Battersea Power Station  project and even shortening the 15-year duration of the project to 10 years. Battersea Power Station Development Company chief executive officer Robert Tincknell said "this time, it is going to happen" at a cocktail party. (StarBiz)

Sime Darby Bhd is waiting for final approvals from the Peruvian government to start planting oil palm in the Latin American state.  Foreign Minister Datuk Seri Anifah Aman said Peru has identified 70,000ha where Sime Darby could undertake the project.  He said the company  is expected to invest between US$150m and US$300m (RM467.4m and RM934.9m) in the venture. (BT)

DRB-Hicom will not totally divest its stake in Bank Muamalat Malaysia to Affin Holdings but just paring down in accordance to the requirement of Bank Negara Malaysia (BNM). "As to what the scheme is and how, I'm not privy to it," Bank Muamalat Malaysia Bhd chief executive officer, Datuk Redza Shah Abdul Wahid, told reporters. He said this when asked on the status of the talks between Affin and DRB-HICOM for a possible acquisition of equity interest in Bank Muamalat and would these negotiations eventually lead to a merger and acquisition (M&A). "As part of the management team I believe the shareholders at some stage will be getting together to commence the negotiation," he said. (Bernama)

Malakoff Corp Bhd is expected to undertake an IPO by 1Q13 to raise fresh capital to revive its financial footing.  RAM Ratings has put Malakoff's RM600m and RM5.6bn Islamic bond programmes on a rating watch with a negative outlook to reflect the power producer's weakening financial profile.  Malakoff is currently in the midst of a corporate reorganisation whereby 100% owned Malakoff Power Bhd is expected to assume Malakoff's obligations on its senior sukuk. The proposed reorganisation will help improve the group's overall cash flow position and is expected to be concluded in the next few months. (Financial Daily, RAM Ratings)

Glove manufacturers are looking for higher public allocation for  brand building in  Budget 2013 to ramp up efforts to create a strong local brand internationally. Supermax Corp Bhd said that building a domestic brand in the international scene is not an easy task therefore concerted efforts and time need to be expanded. (Sun Biz)

KNM Group has proposed to list its unit  Borsig Beteiligungsverwaltungsgesellschaft mb on the Main Board of the Singapore Exchange. It said it expected the proposed listing to be launched in 2013 with an indicative valuation for Borsig of between RM1.8bn and RM1.9bn. KNM said Borsig was acquired in 2008 for about RM1.7bn. It has appointed UOB Bank Ltd as the sole manager, underwriter and the placement agent for the proposed listing of Borsig. (StarBiz)

Padiberas Nasional Bhd (Bernas) expects rice prices to remain stable at current levels in the second half of the year, due to good weather conditions in producing countries which ensure ample supply, said its managing director Datuk Bakry Hamzah.  He said rice prices have been relatively stable in the RM22 to RM23 per 10kg range, and government-subsidised rice at RM18 per 10kg. "There's not much disaster in rice-producing countries. We think the price of rice is going to be stable until year-end with ample supply," he said. (Sun)

Benalec Holdings Bhd has announced the signing of development agreements on its two Johor land reclamation concessions in Pengerang and Tanjung Piai for the construction of an oil terminal. Benalec said its 70% owned units - Spektrum Budi Sdn Bhd and Spektrum Kukuh Sdn Bhd - will bear all costs of reclaiming the two concession areas that span a gross area of 5,245 acres. (Financial Daily)

Brahim Holdings Bhd's plans to acquire  Brahim's-LSG Sky Chef Holdings Sdn Bhd have been put on hold pending clarification from Malaysian Airline System Bhd (MAS) on the possible renegotiation of the catering contract between the two. Group executive chairman Datuk Ibrahim Ahmad said its shareholders had voted in favour of adjourning the deliberation of the resolution until further clarity is obtained. He added that MAS is unlikely to terminate the catering contract. (Financial Daily)

Total logistics services provider  Kontena Nasional Bhd hopes to conclude third party logistics (3PL) services deal with a multinational tyre maker by year-end, its chief executive officer Hood Osman said. It is understood that the 3PL deal consists of a 10-year warehousing services contract and a five-year transportation contract and is one of the largest service contracts for the year.  The deal will required Kontena Nasional to build new ware housing facilities, possibly in the Klang Valley, to support the requirement of the tyre manufacturer. (Malaysian Reserve)

Amcorp Properties Bhd will continue to invest in London properties to generate revenue growth for the company. It believes that it is well prepared to handle any currency fluctuation. "The weakening pound and transparent law in addition to the city being a financial centre with the most liquid property market in the world makes the UK a good place for us to invest," its managing director Lee Ken Pong said. (Malaysian Reserve)

AmCorp Prop still banks on local projects for growth
AmCorp Properties Bhd is banking on its local property development projects in Sibu, Sarawak, and Kayangan  Heights, Shah Alam, Selangor, as well as its power and infrastructure businesses for earnings growth in the coming financial year. The group has finalised its shareholding agreement with NL Pollen Ltd and HPL(Mayfair) Pte Ltd to form a joint venture for the acquisition of a building block in Mayfair, London, for 23.8mil pounds. It plans to convert the building into high-end residential apartments, according to its CEO Lee. (Source: The Edge)

RM1.55bil MRT rolling stock award soon for Sungai Buloh-Kajang Line
MRT Corp is expected to award the rolling stock package for the first line of mass rapid transit (MRT) system, the Sungai Buloh-Kajang (SBK) Line, in a few weeks, said chief executive Datuk Azhar Abdul Hamid. “We have finished the evaluation of the bids and we are now preparing the report to be presented to the tender committee. Our budget for the rolling stock is about RM1.55bil. (Source: The Star)

IGB REIT IPO set to be 4th largest this year
IGB Real Estate Investment Trust (REIT) has priced its initial public offering (IPO) to institutional investors at the top of an indicative range in a deal that will raise about US$260mil in the buoyant Malaysian market, according to sources. The deal is set to be the fourth largest IPO this year in Malaysia, and follows high-profile share sales by planter  Felda Global Ventures Holdings Bhd (FGVH) in June and IHH Healthcare Bhd in July. (Source: The Star)

Maybank targets RM250m from new plans
Malayan Banking Bhd (Maybank) is targeting RM250 million in premiums in the first year of its newly launched retirement plans.The bank's deputy president and head of community financial services, Lim Hong Tat, said the two plans - Smart Retirement and Golden Retirement - bring to the market additional alternatives for retirement savings. (Source: Business Times)

Bank Muamalat Q1 profit up 42%
Bank Muamalat Malaysia Bhd’s net profit for the first quarter ended June 30 surged 41.6% to RM45.2mil compared with a year ago, underpinned by a 14.5% rise in revenue, which increased to RM255.6mil. (Source: The Star)

TNB: No official word on Bangladesh job
Tenaga Nasional Bhd (TNB) has not received any official word from the Bangladeshi government’s power division in relation to the latter’s selection of the company for the development of a 1,320-MW coal-powered plant in Maheshkali, Cox’s Bazar. (Source: The Star)

Genting Bhd: Genting HK spends US$50m to refurbish cruise ships
As part of on-going efforts to expand its regional footprint, Genting Hong Kong Ltd is spending US$50m (RM155.85m) to refurbish Star Cruises’ “SuperStar Gemini” to ready the ship for a re-launch early next year from Penang, Malaysia. Star Cruises said the refurbished ship would be paraded in a series of inaugural cruises, starting with Penang to Krabi or Phuket between Jan 2 and Jan 24 next year.  (Financial Daily)

Pestech International: In JV agreement to bid for Laos job
Pestech International’s unit has entered into a JV agreement to design and build a 115 kV transmission line to the Laos-Thailand border. In a filing Thursday, Pestech said its unit Pestech Sdn Bhd had entered into a JV agreement with VLV Soumpholphakdy Sole Co Ltd to cooperate on an exclusive basis to undertake the project which the JV is endeavoured to procure from Electricite Du Laos. It said a  JV would be set up with the name of VLV Soumpholphakdy Sole and Pestech Sdn Bhd JV in the event that the project was successfully secured. Thereafter, it is the intention of the JV Entity to collaborate in project execution and transferring know-how between both parties regarding substation designs, civil works, secondary control and protection, tele-control, underground cable and transmission line works, it said. (Financial Daily)

Telecommunication: Rais asks local telcos to provide more info on 4G technology
Information, Communications and Culture Minister Datuk Seri Utama Dr Rais Yatim has asked local telecommunication companies to provide detailed information on 4G technology before the government approves its usage in Malaysia. He said the people must clearly understand the difference between 3G and 4G technology, particularly in terms of speed, coverage area and data available. Rais said there was not much difference between 3G and 4G technologies unlike the 2G technology with significant difference from the 3G technology. (Bernama)