Business This Week (August 3-7)

Aug 7

HAP SENG CONSOLIDATED BHD [ HAPSENG 2.550 0.010 (0.394%)] Stock Summary Time & Sales Historical Prices Business Summary Announcement is buying a 50% stake in Menara Citibank for RM303.5 million from Singapore's CapitaLand Ltd and Amsteel Corporation Bhd. It is acquiring CapitaLand's entire 30% stake in Inverfin Sdn Bhd -- owner and operator of the 50-storey building in Kuala Lumpur. It was also acquiring the entire 20% stake in Inverfin from Amsteel. Menara Citi Holding Co. Sdn Bhd owns the other 50% stake in Inverfin.

Land and General Bhd (L&G), which completed its debt repayment recently, said it would continue to focus on its core business of property development, including joint projects with land owners. “We are (already) in talks with land owners (in Klang Valley) and are in the final stage of discussions on the joint ventures. We as developer, they as land owners,” said its managing director Low Gay Teck. Low said L&G's immediate strategy was to enhance the value of its flagship property, the 1,200-acre Bandar Sri Damansara township.

Aug 6

Amid a turbulent operating environment, MALAYSIAN AIRLINE SYSTEM BHD [ MAS 3.200 0.100 (3.226%) ] posted a net profit of RM875.51 million in the second quarter (2Q) ended June 30, aided by a RM1.34 billion derivatives gain. Operationally, however, MAS posted a worse-than-expected loss of RM420.8 million as travel and cargo demand declined amid the global economic downturn that has dragged even the world’s best carriers, including Singapore Airlines, into the red.

Boustead Petroleum Marketing Sdn Bhd (BHPetrol) will market its RON95 — infiniti952x — at all its 300 stations nationwide by Sept 1, 2009 to replace RON92.
Speaking at the launch of BHPetrol’s RON95 here yesterday, BHPetrol’s managing director, Tan Kim Thiam, said infiniti95²x comprised an additive package that was made up of “detergent and anti-corrosion components together with friction modifier”.

FORMIS RESOURCES BHD [ FRB 1.190 0.010 (0.847%) ] has secured a RM69.98 million one-year contract to supply, install and commission an integrated e-courts system, called e-Kehakiman, for the country’s courtrooms. Formis said the contract, covering courtrooms in Selangor, Kuala Lumpur, Putrajaya, Johor, Penang and Sarawak, required it to design and set up three systems, encompassing e-filing, case management and queue management system, and court recording and transcription.

AIRASIA BHD [ AIRASIA 1.430 0.010 (0.704%) ] has deferred the delivery of eight Airbus A320 from the year 2010 to 2014 as it foresees infrastructural constraints with the current airport facilities and until the new low-cost carrier terminal is constructed. The low-cost carrier said on Aug 6 that with the deferment, the original delivery of 24 aircraft in 2010 would be reduced to 16 aircraft.

Aug 5

TSR CAPITAL BHD [ TSRCAP 1.350 -0.040 (-2.878%) ] received the Negri Sembilan government’s approval yesterday to develop a tax-free mall and a custom, immigration and quarantine (CIQ) complex as well as tourism-related projects in the centre of Port Dickson with a gross development value (GDV) of RM1.8 billion. TSR said the development entailed a free-tax mall, CIQ complex, international ferry terminals, aquarium and water theme park, hotels and convention centre, theme shops, medical centre and apartments.

AHMAD ZAKI RESOURCES BHD [ AZRB 0.910 -0.025 (-2.674%) ] subsidiary Ahmad Zaki Sdn Bhd has been awarded a RM106 million contract by the Works Department for an elevated interchange from Istana Negara to Jalan Duta. AZRB said the project would be completed within 18 months from Aug 10, 2009 to Feb 9, 2011. It expects the project to contribute positively to its earnings for the financial years ending 2009-2011.

Bursa Malaysia reserves the right to extend the trading halt period of a listed company’s securities beyond the shortened period of one hour that took effect on Monday.
Bursa said it reserved the right to extend the halt for the rest of the trading session, or such other period as deemed appropriate by the exchange, to enable sufficient time for dissemination and understanding of complex announcements.

The major shareholders of The New Straits Times Press (M) Bhd (NSTP) are mulling various ideas and plans to enhance shareholder value, including a possible privatisation of the company, demerger and spin-off. NSTP said, however, its major shareholders have not committed to a date or made a firm decision regarding such plans.

Aug 4

Prime Minister Datuk Seri Najib Tun Razak launched the country's first Special Economic Zone (SEZ) in Pekan, Pahang on Aug 4 in a move to generate investments of RM90 billion by 2020 and creating 220,000 new jobs. The SEZ, which is part of the East Coast Economic Region (ECER), is an integrated development zone with special incentives to attract investments and boost economic activities. The SEZ stretches from Kertih, Chukai, Kuantan Port City, Kuantan, Gambang to Pekan.

The Australia and New Zealand Banking Group Limited (ANZ) has emerged as AMMB HOLDINGS BHD [ AMMB 4.150 -0.120 (-2.810%) ]’s largest shareholder with a 24.6% stake, up from 19.2% previously, after converting its entire holdings of RM575 million unsecured subordinated exchangeable bonds into shares. Taking into account the special issue of 96.3 million new AMMB shares to bumiputera investors, ANZ’s stake in the local bank would be diluted to 23.8% stake. Two days ago, AMMB had issued 194.9 million new shares to ANZ, following the latter’s move to convert the exchangeable bonds that ANZ had subscribed in 2007, into equity.

Petroliam Nasional Bhd (Petronas) plans to sell at least US$2.5 billion (RM8.75 billion) in dollar bonds, according to an emailed statement to investors. Petronas will sell five-year sukuk and 10-year conventional bonds, which may be priced to pay about 175 basis points more than US government debt of similar maturities, according to the statement to investors from Citigroup Inc, one of the sale’s arrangers. A basis point equals 0.01 percentage point.

Cerah Sama Sdn Bhd, which is 55%-owned by water player Taliworks Corp Bhd, disposed of 14.1 million shares or a 7.8% stake in SILK Holdings Bhd between July 20 and 29, slashing its shareholding to 11.4 million shares or 6.3%. The other shareholder of Cerah Sama is SEASAF (South East Asia Strategic Assets Fund) Highway Sdn Bhd.

Cerah Sama did not say why it cut its stake in the toll road operator. However, speculation is rife that it could be due to its disagreement with SILK’s management over the company venturing into oil and gas (O&G) support services, deviating from its present core business in toll road operations.

Aug 3

With the belief that the global economic recovery is now firmly in place comes the confidence to raise funds in the market not seen since the collapse of Lehman Brothers Holdings Inc in the US last September. AirAsia Bhd, which pioneered low-cost air travel in the region, is planning an audacious share sale estimated to raise more than RM600 million, making it the largest fund-raising to be undertaken by a Malaysian company since the credit crunch that led to Lehman’s fall. The share sale is in line with Air-Asia’s plan to have RM1 billion cash by year-end, as announced by its group CEO Datuk Seri Tony Fernandes after its shareholders’ meeting

The Inland Revenue Board of Malaysia's gross tax collection for the first seven months of 2009 rose 2% to RM53.5 billion from RM52.4 billion a year ago mainly due to improved contribution from the petroleum industry and individual taxpayers. Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said: "I consider this (collection) a positive thing given the current economic situation and comparing it with other countries."

SIME DARBY BHD [ SIME 8.260 -0.050 (-0.602%) ]'s unit via its unit Sime Darby Engineering Sdn Bhd has entered into a definitive sale and purchase agreement with Ramunia Holdings Bhd to take over the energy services company for RM560 million cash. The deal is a revision of an earlier offer by Sime Darby to acquire Ramunia’s business including assets and liabilities for RM232 million, to be satisfied by RM46.2 million cash and RM185.8 million in shares of Sime Darby Engineering. The new offer excludes the takeover of Ramunia’s liabilities.

Property developer GUOCOLAND (MALAYSIA) BHD [ GUOCO 1.060 -0.020 (-1.852%) ] plans to roll out several high-end projects in stages at Emerald Rawang, Selangor, with a total gross development value (GDV) of RM1.7 billion. “Going forward, the RM1.7 billion GDV will have a bigger impact in terms of contribution. The projects are expected to be completed in 2016 or 2017,” executive director Chan Chee Meng told reporters during a media tour.