20121010 1452 Malaysia Corporate Related News.

Sunway Bhd, the parent of Sunway REIT, is disposing Sunway Medical Centre (SMC) to Sunway REIT for RM310m funded by debt and equity. SMC will subsequently lease back the property from Sunway REIT based on a triple net lease basis  for the first 10 years with the option to renew another 10 years, and annual rental rate of RM19m for the first year with an increment of 3.5% p.a. The acquisition will increase Sunway REIT's asset size to RM4.9bn from RM4.6bn and maintain its position as Malaysia's largest REIT by assets. (StarBiz)

Tenaga Nasional Bhd has won a bid to build and operate a RM3bn gas-fired power plant to meet rising energy needs as the country’s economy grows. The 1,071-megawatt plant is expected to begin operations in March 2016 in Prai, in Malaysia’s northern Penang state, according to the Energy Commission, an industry regulator which awarded the contract. The Energy Commission also extended power purchase agreements for three existing gas-fired plants.  Genting Sanyen Power  and Segari Energy Ventures were given  10-year extensions, while Tenaga was granted a five-year renewal for its facility in Pasir Gudang, Johor. Segari Energy Ventures belongs is owned by Malakoff Bhd. Gas used to fuel these stations will no longer be subsidized, he said. (Bloomberg, Energy Commission)

The electricity tariff rate will remain at its current level until June next year, Minister of Energy, Green Technology and Water, Datuk Peter Chin Fah Kui, said. He said the earlier plan of the government was to review the tariff every six months but the final authority was the Cabinet and it had rejected the plan. Chin disclosed that his ministry had presented the paper on the tariff recently to the National Economic Council. ―Cabinet does not approve it. So I think there will not be any review and the tariff will not be changed,‖ he said. The last time the government increased electricity tariffs was in June last year, following an increase in the natural gas price for the power sector. Chin also said the renegotiation of the power purchase agreements (PPA) for independent power producers will result in a more competitive rate. (Malaysian Insider)

Opcom Holdings has received a RM92.5m contract from  Telekom Malaysia for the supply of single mode optical fiber cables and other cables to Telekom. The contract is for a period of three years, commencing from Sep 12. The award is expected to contribute positively towards Opcom Group’s earnings and net assets for the three-year period. (BT)

Structural steel player  Eversendai is confident of securing contracts worth RM500m in Malaysia within the next few months, Exec. Chairman/Group MD Datuk A.K. Nathan Said. "We will bring the experience we have gained overseas into the country and perhaps change the construction approach itself." he said. "Presently, we have RM1.7bn worth of jobs in hand and we have bid for some RM12bn worth of jobs, which would last us for three years." he said. "There are certain difficulties in terms of  the global environment but our excellent reputation has placed us in good position to garner support from clients." he said. (Bernama)

Astro Digital a subsidiary of  Astro Malaysia Holdings Bhd has entered into a strategic collaboration with Google to extend the distribution of its Astro branded content to Malaysia and the rest of the world via  YouTube. The agreement would capitalise on new technologies and develop new products to expand Astro Malaysia's customer reach and enhance its service proposition to consumers. Six full-length catch-up channels will be available on YouTube within a week from broadcast. (Bernama)


Standard & Poor's Ratings Services has revised the outlook on MISC to stable from negative after its proposed disposal of a semi-floating production system to reduce its debts. The ratings agency said it had also affirmed its "BBB" long-term corporate credit rating on the company. S&P revised the outlook on MISC because it expects the company to use the proceeds from a proposed asset sale to reduce leverage. (Star Biz)


Multi-Purpose Holdings Bhd is exiting its stockbroking business by selling A.A. Anthony Securities Sdn Bhd (AAA) for between RM150m and RM155m and a premium of RM15m. MPHB said it had signed a conditional share purchase agreement with UOB Kay-Hian Holdings Ltd to dispose of AAA for cash consideration based on the audited net tangible asset and a premium of RM15m. "This proposed disposal forms part of MPHB's plan to streamline the business operations and strategy of the MPHB Group," it said. MPHB added the disposal would enable it to focus in the gaming business after the proposed disposal and proposed demerger of the gaming business and SPV Capital businesses, which comprises of financial services and other investments. "The proposed disposal also presents an opportunity for the MPHB Group to unlock its investment in AAA," it said. (Bizstar)

LBS Bina Group Bhd's controlling shareholder Intelrich Sdn Bhd intends to mop up more shares on the open market to raise its shareholding in the property group. Managing director Datuk Lim Hock San, who also heads the Lim family's investment vehicle Intelrich, said LBS shares are "undervalued" at the current price. (Financial Daily)

Gadang Holdings Bhd said the estimated provisional contract that it secured from  Petroliam Nasional Bhd for preparation work for the refinery and petrochemical integrated development (Rapid) project is RM312.8m. Last Friday, Gadang announced that its wholly-owned unit, Gadang Engineering (M) Sdn Bhd, has accepted the Letter of Award from Petronas for the provision of Phase 1 site preparation work for the proposed Rapid project — Package 1. (BT)

Esthetics International Group Bhd (EIG) will suspend the distribution of Dermalogica skincare products in China due to challenges with product registration. Following the decision, EIG said the South China Distributorship Agreement, which grants the exclusive rights to EIG to distribute in South China, will be discontinued effective Dec 31. (BT)