CIMB Daybreak - 06 May 2016
Source: CIMB Daybreak - 06 May 2016
Tune Ins Holdings
(TIH)
had on 5 May 15 executed a Conditional Binding Offer Letter to acquire 31.8% stake
(or 23.3% of the enlarged share capital) inPT Asuransi Staco Mandiri (ASM) for a
purchase consideration of IDR26.8bn.TIH will also subscribe for the 43,707
new issued shares in ASM for IDR30.6bn.The new shares represent 26.7% of the
enlarged share capital in ASM.
The sellers of the stakes are Dana
Pensiun Bank Mandiri Dua (23%), Yayasan Kesejahteraan Pensiun (7.7%) and Dana
Pensiun Pertamina (1.2%).
·Meanwhile, to facilitate the
acquisition process, TIH has signed a Cooperation Agreement with PT Cahaya
Putralama Abadi (CPA) to assist it to become ASM’s holding company. Under the
agreement, CPA will also provide further assistance and business development
services for the expansion of TIH’s insurance business in Indonesia for
IDR25.5bn.
The acquisition and cooperation would
enable TIH to own a total of 50%-plus-1-share equity interest in ASM for a
collective purchase consideration of IDR82.9bn (US$6.4m or RM22.8m). (BMSB)
Sime Darby, the world's largest
listed palm oil firm, has indefinitely postponed an initial public offering of
its automotive business that bankers had said could raise up to US$500m
(RM1.8bn). The company had in February deferred the IPO of Sime Darby Motors to
the second half of this year but three people with direct knowledge of the
matter said the deal had been put off for now. A Sime Darby spokesman also said
the IPO had been deferred "until the market is conducive for the
exercise". He declined to give further details. (Reuters)
Malaysia Airports
Holdings Bhd (MAHB) has
been pre-qualified to bid for the contract to operate and manage the King
Abdulaziz International Airport (KAIA) in Jeddah, Saudi Arabia, which is
currently being expanded and upgraded, said managing director Datuk Mohd
Badlisham Ghazali.
·"This is a services contract
from Saudi Arabia's General Authority of Civil Aviation, where we are tendering
to be the operator of the airport. The scope is bigger than the New Doha
International Airport," he told reporters after the group's annual general
meeting yesterday.
·He added that the value of the
contract has not been finalised, and that there is no indication of when the
tender results will be announced. The KAIA expansion project is expected to be
completed by the end of this year. (Financial Daily)
CIMB Bank Bhd (CIMB
Bank), in
which CIMB Group Bhd holds a 99.9% equity stake, has successfully completed the
inaugural issuance of US$313m (approximately RM1.129bn) 30 years callable zero
coupon notes yesterday. In a press statement, CIMB Bank said the landmark
issuance is to be listed on the Taipei Exchange (GreTai Securities Market) and
the Bursa Malaysia (Exchange Regime). It was CIMB Bank's maiden issuance in the
Taiwanese market, also known as the Formosa Bond Markets According to the
banking group, the deal saw healthy demand from onshore investors across
multiple accounts, culminating in a peak of total orders exceeding US$480m
(RM1.73bn), allowing the deal to eventually be priced at 4.50%. (Financial
Daily)
AirAsia Bhd is not ruling out the
possibility of another joint venture (JV) within the Asean region. "New
JVs are not out of the question," said group chief executive officer Tan
Sri Tony Fernandes, when asked about expansion plans in Asean. However,
Fernandes did not reveal which country he has earmarked for the next possible
venture, but said the move would further strengthen Air Asia's Asean network.
(Financial Daily)
Malaysia Airlines
(MAS) is
said to stop flights to major cities under new CEO Christoph Mueller as he
attempts to turn the ailing national carrier to profitability. According to
sources, international routes that may be axed include Dubai, Brisbane, Auckland,
Amterdam, Kunming, Istanbul and Osaka. Last month the national carrier had
announced its withdrawal from the Frankfurt route effective May 29. This was
part of the overall strategy to turn the carrier into a regional airline but
with strong global connectivity through its OneWorld alliance. (Malaysian
Reserve)
Singapore and Malaysia are reassessing
a 2020 target for the completion of a high-speed rail project linking
the two countries because of the scale and complexity of the venture. A new
timeline will be available by the end of the year, Singapore Prime Minister Lee
Hsien Loong said at a joint press conference with his Malaysian counterpart
Najib Razak in the city state Tuesday. The initial target needs to be studied
as it will take at least two years to design and put out tenders for the
project and another five for construction, Najib said. (Financial Daily)
The International Air
Transport Association (IATA) data for global air freight markets showed a
modest 1.6% rise in freight tonne kilometres in March compared to the same
month a year ago. The industry's March performance stands in sharp contrast to
the exceptionally strong 12.2% rise reported for February. "February's
performance, however, was positively skewed by the combined impacts of the
timing of the Lunar New Year and the labour dispute at US West Coast
seaports," IATA said in a statement.
The association said freight
performance in the first quarter of the year indicated year-on-year growth of
5.3%, in line with the general global economic trend, and slightly higher than
the 4.5% growth that was anticipated in its December outlook. For the longer
term, IATA called on governments to work in partnership to remove barriers to
trade. (Bernama)
Quek Kon Sean, the youngest son of
billionaire Tan Sri Quek Leng Chan of the Hong Leong Group, has founded GEMFive,
an online shopping portal that he plans to take into the regional digital
space, targeting Singapore and Indonesia next. The startup funding is provided
by the Hong Leong Group and so far less than RM5m has been invested to take
GEMFive to the digital space. “We are a capex light investment, but the major
spending has yet to come,’’ Kon Sean told.
The online store has close to 300
brands and over 10,000 items for among others fashion, home and living, beauty
and health, mothers, children and electronics. It is asset light because it
does not carry a heavy inventory. A report citing Forbes said in 2011, total
e-commerce transactions in Malaysia came up to almost RM900m. This year, it may
be worth as much as RM5bn, whereas e-commerce sales worldwide are estimated to
hit US$2tr in 2015. (StarBiz)
Malaysian Bulk
Carriers Bhd's
(Maybulk) 21.23%-owned associate, PACC Offshore Services Holdings Ltd (POSH),
saw its net profit for 1Q15 plunge 99% to S$21,000 (RM56,706) from S$36.67m
(RM99.02m) in the previous corresponding quarter. This was despite a 9%
increase in revenue to S$57.58m from S$52.93m, driven mainly by contribution
from the offshore supply vessels (OSV) and offshore accommodation (OA) business
segments. (Financial Daily)
The Pavilion group is setting a record
of sorts as it has priced its high-rise serviced residential units of its
latest project – the Pavilion Suites – along Jalan Bukit Bintang starting from
RM3,000 per sq ft. The 51-storey project comprises 383 one and two-bedroom
service residentials and offers 450,000 sq ft of retail space on a gross floor
area basis. On a net basis, this is expected to be about 240,000 sq ft. The
record price for the residential units comes as no surprise to some as it is
being built on a half-acre parcel that created a buzz in the property sector in
2010. That year, Urusharta Cemerlang Sdn Bhd, a company controlled by property
magnate Tan Sri Desmond Lim, purchased the tiny strip of land from Singapore
billionaire Kwek Leng Beng for a record price of RM7,209 per sq ft. (StarBiz)
Pacific NorthWest LNG
is
offering up to C$1.15bn (US$950m) over 40 years to an aboriginal community in
Canada to approve its natural gas export terminal on Canada’s Pacific Coast.
Reports said on Tuesday the joint venture, which is led by Petroliam Nasional
Bhd (Petronas) had made the offer to the community, which would be paid over 40
years. Pacific NorthWest LNG is offering the payments to the Lax Kw’alaams First
Nation so it can build the unit on the community’s traditional lands at the
port of Prince Rupert in northern British Columbia, the native group said.
(StarBiz)
Scanwolf Corp Bhd has been slapped with
a second unusual market activity (UMA) query this year after its share price
surged to a high of 92.5 sen yesterday. The stock ended the day at 80.5 sen on
volume of 5.5m shares transacted. The company, in an immediate reply to Bursa Malaysia’s
query said it was unaware of any “rumour or report” behind the sudden spike of
its share price. (StarBiz)
Homeritz Corp Bhd proposes a
one-for-two bonus issue of 100m new shares and 50m warrants to reward
shareholders. The entitlement date will be determined and announced at a later
date, after all relevant approvals for the proposed bonus issue have been
obtained. Meanwhile, the group also proposed a free warrants issue of up to mn
free warrants on the basis of one free warrant for every four existing Homeritz
shares held. It said the warrants will be issued at no cost to entitled
shareholders.
"The final exercise price of the
warrants shall be determined by the board and announced by the company at a
later date, after obtaining the approvals of the shareholders of Homeritz and
relevant authorities," it added. (Financial Daily)
Ire-Tex Corporation
Bhd said
its external auditors Messrs UHY had expressed a qualified opinion in the
company’s audited financial statements for the financial year ended Dec 31,
2014 (FY14). According to the statement issued by Ire-Tex on Tuesday, UHY had
stated the qualified opinions related to the trade receivables arising from the
sales of goods. In its basis for the qualified opinion, it said Ire-Tex’s unit
Zoomic Automation (M) Sdn Bhd had sold goods to two related parties amounting
to RM5m, with an advance of RM800,000 which were subsequently impaired by the
management. UHY said due to insufficient audit evidence, it was unable to
validate the existence of these sales and whether there were other
consequential adjustments to be made. (StarBiz)
Omesti Bhd (formerly Formis
Resources Bhd) is currently loss-making, but vice chairman Datuk Mah Siew Kwok
seems to have confidence in its prospects. Last month Mah became the largest
shareholder in the technology services company (formerly Formis Resources Bhd)
after buying 20m shares from chairman Tan Sri Megat Najmuddin Megat Khas on
April 21-22. On Thursday last week, he continued to build his interest via
daughter Mah Xian-Zhen’s purchase of 11.1m shares on Thursday last week.
Omesti told Bursa Malaysia on Tuesday
that Megat Najmuddin had on April 30 sold 10m more shares to the Mah family,
representing a 2.58% stake, which reduced his interest to 5.45%. Xian-Zhen, who
is an Omesti executive director, bought a total of 11.17m shares at 45 sen
apiece, or RM5.0m. With the indirect stake, Mah’s direct and indirect stake
rose to 24.6%. (StarBiz)
Vsolar Group Bhd is in talks with the
Sustainable Energy Development Authority (SEDA) to set up a 20 MW private waste
treatment plant to be located in either Rawang or Malacca. A source close to
the company told that the timeline and cost has yet to be fixed as the proposed
plant is still in the early negotiation. "They are currently negotiating
and will need about 100 acres of land for this proposed project if granted
license from SEDA," said the source. The company is also looking to
venture into Indonesia and Philippines for engineering procurement and
construction jobs in the solar energy business. (Malaysian Reserve)
Trading in Yokohama Industries Bhd shares
will be suspended with effect from 9am on May 13 as a prelude to a delisting.
The automotive battery manufacturer told Bursa Malaysia on Tuesday that
Singapore-based Fordington Pte Ltd and persons acting in concert had received
valid acceptances that raised their combined stake to 96.34%. The final closing
date for the takeover offer was 5pm on Tuesday. A level of holding of over 90%
had been achieved even as at April 8, the original closing date, for
Fordington's RM1.70-per-share cash offer. (StarBiz)
The High Court
Complex in
Kota Baru is the latest location in the country to upgrade its court management
systems with the expansion roll-out of the Omesti eCOURTS solution, including
eFILING, a digital online system for filing and tracking cases. The national
expansion is part of the Federal Court of Malaysia programme to streamline
court operations and deliver improved efficiency and productivity for the
judiciary, court officers and legal practitioners. Omesti Bhd (formerly Formis
Resources Bhd) said in a statement that the Omesti eCOURTS team had been
working closely with the Federal Court Chief Registrar’s Office and Nazri
Ismail, deputy registrar for eKEHAKIMAN (eFILING), to help implement the system
in additional locations. (StarBiz)
Wing Tai Malaysia Bhd
has
proposed to undertake a renounceable rights issues of up to 164.1m shares,
which is expected to raise a gross proceeds of up to RM197m. In a filing with
Bursa Malaysia, the diversified group said the gross proceeds raised from the
exercise will be utilised for development expenditure and working capital,
which will be used within 36 months. Wing Tai said the rights issues is on the
basis of one rights share for every two existing shares held by the entitled
shareholders of Wing Tai. The group, however, has yet determined on the final
rights issue price and the actual number of rights shares to be issued.
(Financial Daily)
R&A
Telecommunication Group Bhd has triggered the Guidance Note 3
(GN3) of the ACE Market Listing
Requirements of Bursa Malaysia Securities Bhd. It said on Tuesday the GN3
criteria was triggered when the auditors expressed a disclaimer opinion in the
company’s latest audited financial statements for FY ended Dec 31, 2014 which
was announced on April 30, 2015.
R&A said it had to submit to Bursa
Securities a regularisation plan and obtain Bursa Securites’ approval to
implement the plan within 12 months from the date of this announcement. It also
had to appoint a sponsor within three months and it also had to implement a
regularisation plan within six months from the date the regularisation plan is
approved by Bursa Securities. (StarBiz)
Kwasa Land Sdn Bhd, the master
developer of the iconic Kwasa Damansara township in Sungei Buloh, have named
five Tier-2 developers which have successfully pre-qualified for the next
Request for Proposal (RFP) R2-1. Kwasa Land, in a statement, said Tier 2
companies were categorised as companies with shareholders’ funds or paid up
capital of RM300m. The successful companies are Johor Land Bhd, MKH Bhd, Naza
TTDI Sdn Bhd, Paramount Corp Bhd and TH Properties Sdn Bhd. (StarBiz)
Source: CIMB Daybreak - 06 May 2016
