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