Business this week (13-17 July)

July 17
- WCT Bhd has secured four contracts worth RM766.48 million from Medini Iskandar Malaysia Sdn Bhd (MIMSB) for infrastructure works in Medini Iskandar Malaysia, Johor. WCT said the project was expected to be completed by July 2011, and the contracts were expected to contribute positively to the earnings and net assets of the group for the financial years 2009 to 2011.

July 16
- Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash), a 40% associate of Gamuda Bhd and a 30% associate of Kumpulan Perangsang Selangor Bhd (KPS), has received a third offer from the Selangor state government in the latter’s proposed takeover of the state’s water-related assets.

However, the third offer saw no change to the offer price of RM2.975 billion and other key terms, except that the state government had agreed to retain Sungai Harmoni Sdn Bhd and Gamuda Water Sdn Bhd as the operations and maintenance (O&M) operators of Sungai Selangor Water Supply Scheme phase 1 (SSP1) and phase 3 (SSP3), respectively, upon the same terms and conditions as those signed between Splash and the operators in January 2000.

- Sarawak Energy Bhd raised RM1.45 billion in financing facilities for the proposed 944mW hydroelectric plant in Sarawak. They comprised of a syndicated murabahah tawarruq facility of RM1.15 billion and syndicated term loan facility of RM300 million.

- The manufacturing sector recorded lower sales value in May, down RM12.8 billion from RM49.5 billion from a year ago, according to the Statistics Department. The total number of workers in the sector fell to 935,761 workers from 101,3715 a year ago.

- China’s GDP growth in the second quarter rose 7.9% due to massive fiscal and monetary stimulus.

- The Malaysian Institute of Economic Research revised downwards its GDP outlook for the country to a contraction of 4.2% from 2.2% because of declines in macroeconomic indicators, fragile confidence and dismal sectoral indices.

- Johor Land Bhd (JLand) will be delisted from the Main Board of Bursa Malaysia Securities on Tuesday following a voluntary takeover offer by Damansara Assets Sdn Bhd and Johor Corporation for all the remaining ordinary shares of RM1 each not already owned by them at RM1.55 cash a share.

July 15
- Public Bank Bhd and Bank of China (Malaysia) have established a yuan trade settlement service cooperation between them to facilitate Malaysia’s yuan trade settlement with China. With the tie-up, Public Bank becomes the first bank in Malaysia apart from Bank of China (Malaysia) that is ready to offer the yuan trade settlement service.

- Malayan Banking Bhd (Maybank) has appointed Takaful Malaysia chairman Tan Sri Dr Hadenan Jalil, former banker Datuk Seri Ismail Shahudin and Southern Steel Bhd group managing director Datuk Dr Tan Tat Wai as new independent directors.

- Magna Prima Bhd (MPB) is acquiring parcels of freehold and leasehold land measuring a total of 9.04 hectares in Gombak, Selangor for RM40.53 million cash to undertake a RM130 million mixed development project.

- It is acquiring the land from Seri Dinar Project Development Sdn Bhd. MPB said the estimated gross development value (GDV) or sales value of the proposed project was RM130 million, of which the gross profit margin was expected to be about 20%.

- China National Petroleum Company (CNPC) and Saudi Aramco may take a strategic stake in Merapoh Resources Corporation Sdn Bhd (MRCSB), which will own the country’s largest refinery with a capacity of 350,000 barrels per day (bpd).

Merge Energy Bhd will be uplifted from classification as an amended Practice Note 17 company, says Bursa Malaysia Securities Bhd.

July 14
- Bumiputra-Commerce Holdings Bhd’s subsidiary CIMB Islamic Bank Bhd has extended a RM1.5 billion loan to the National Higher Education Fund Corporation (PTPTN) in the latter’s first commercial financing arrangement as it looks to reduce its reliance on government funding. The government-guaranteed Islamic loan was for a tenure of 10 years, with the profit rate being “slightly higher” than the interest rate of Malaysian Government Securities.

- AmBank (M) Bhd is expecting RM75 million or more new deposit from its latest structured deposit offering, the AmMomentum Select Islamic Negotiable Instrument of deposit (NID-i). The bank is confident that this latest structure deposit is ideal for investors seeking a safe haven for investment.

- The Securities Commission has approved of Tan Sri Tan Hua Choon’s proposed takeover of ceramics sanitary ware manufacturer Goh Ban Huat Sdn Bd.

- United Malacca Bhd (UMB) is acquiring 10,102ha of land in Kinabatangan, Sabah for RM240 million to expand its plantation operations. The company said on July 14 the acquisition involved two parcels of land from Borneo Glow Sdn Bhd.

July 13
- CIMB Investment Bank Bhd has become the first underwriter of an initial public offering (IPO) to exercise a “green shoe” option and price stabilisation mechanism, a Securities Commission (SC) regulation that has been in place since January 2008.

Both mechanisms were enabled by the coming into force of the SC’s Capital Markets and Services (Price Stabilisation Mechanism) Regulations 2008, which is aimed at stabilising the share price of a company post-IPO.

- Kannaltec Bhd’s subsidiary Obtec Sdn Bhd suspended broad band services to 345 Selangor state agencies following stalled negotiations on subscription agreements.

- The Malaysian Rubber Glove Manufacturers' Association (MARGMA) is urging the authorities to expedite the approval of foreign workers for glovemakers who are currently facing an acute labour shortage.

- MARGMA president KM Lee said most glove manufacturers were hard pressed to meet the shipment dates of their customers' orders and the delivery lead times had now stretched to between two and three months instead of the usual one month.