Barefoot Investor: January 2011

Hello.. chinese new year is almost coming. So, I wish to post an early wish to say Happy Chinese New Year! Gong Xi Fa Chai! Nian Nian You Yu! Wan Shi Ru Yi! Xin Xiang Shi Cheng! Gong Xi Go Xi!

hahaha.. in english phrase. May it bring good luck for you, good fortune, good times and also properity!! :)


Stellar performance for Public Bank
Public Bank, the country's third largest lender, saw net profit rise by 21% to a record last year and said it can probably maintain a similar growth rate this year despite stiffer competition. "Given the healthy economy that is expected for this year, we expect a similar magnitude of earnings growth can be achievable, barring unforeseen circumstances," its chief operating officer Leong Kwok Nyem said yesterday afternoon. The group, which expects the Malaysian economy to expand by as much as 6% this year, is also targeting to maintain its annual return on equity (ROE) at 27% in the next two to three years. The group's fourth quarter net profit last year rose by 25% to RM846m, its highest quarterly earnings ever. This brought net profit for the full year to RM3.05bn compared with RM2.52bn in 2009. Revenue improved by 13.6% to RM11bn. (Business Times)

Ramunia back to rig business
Ramunia Holdings is returning to its old core business of making oil rigs, almost a year after it sold its major asset to Sime Darby for RM560m. It has made an offer to Oilfab SB, a 51% unit of Oilcorp, to buy the Pulau Indah Integrated Fabrication Yard and assets in Klang, Selangor, for RM83.8m. Its new purchase will allow it to start operating a fabrication yard immediately, the group said in a statement to Bursa Malaysia. Ramunia expects to take over the fabrication yard, which is fully equipped and ready with infrastructure, from 1 March 2011. The company said it will pay RM3.8m in cash for the acquisition. The rest will be settled with new Ramunia shares to Oilfab at an issue price of 51 sen each. Oilfab is expected to place out half of the shares to unidentified investors at the same price. (Business Times)

Ann Joo to buy stake in Anshin
Ann Joo Resources has entered into a share sale agreement to acquire a 38% stake in Anshin Steel Processor SB, at a cash consideration of RM2.10 per share worth RM11.970m. The agreeement is with SHH Holdings SB and Chuan Huat Hardware Holdings SB to acquire 3m and 2.7m RM1 shares, respectively, said the company in a filing with Bursa Malaysia yesterday. Ann Joo currently holds the balance 62% of the share capital of Anshin. Upon completion of the acquisition, Anshin would become a wholly-owned subsidiary of Ann Joo, it said. (StarBiz)

'Proton, Perodua free to decide'
The Government will not force Proton Holdings and rival Perodua to merge as shareholders of both carmakers need to agree for it to happen, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. "There is a long spectrum involved; at one end is loose cooperation and at the other, a merger, which has yet to be decided," he told reporters yesterday. The Government is the major shareholder of Proton via Khazanah Nasional while Japan's Daihatsu owns the majority of Perusahaan Otomobil Kedua SB's manufacturing arm. While Proton, which needs to reduce excess capacity at its Tanjung Malim plant, wants a merger, Perodua is not keen. (Business Times)

Low response to MESB takeover
The conditional takeover offer by Teoh Hwa Peng and parties acting in concert for MESB shares at 33 sen each, received acceptances of just 3.15%. Hwang DBS Investment Bank, which was acting on behalf of the offerors, said in a note by MESB to Bursa Malaysia yesterday that at the final closing date of the offer yesterday, the offerors held 50.09%, or 21.037m shares. Of the shareholders holding 3.15% shares which had agreed to the offer, 0.47% had been verified as valid acceptances while 2.68% had been acquired or agreed to be acquired. As of 17 Dec, 2010, which was the posting date of the offer document, the offerors held 46.94%, or 19.71mi shares.(StarBiz)


A lower week. The FBM KLCI fell 19.08 points to close at 1,547.43 on Friday. Among the news, Bank Negara said its international reserves stood at RM329.9bn as at 14 Jan 2011, GSB Group Bhd has entered into a conditional sale and purchase agreement with Leopad Holdings SB to sell its property comprising land and a 13-storey hotel for RM22m cash while Salcon is aiming for a 40% contribution to revenue from its overseas operations in two to three years from the current 20% by securing new water-related contracts in countries like China and India. Malaysia Smelting Corp’s public offering share for a secondary listing on the Singapore Exchange Securities Trading Ltd has been fixed at SGD1.75 or RM4.17/share, and Time Engineering Bhd expects to raise RM300.6m for the sale of its entire equity stake in TimedotCom Bhd to the former’s shareholders. Finally, the US markets closed mix, with the technology shares lagging the broader market as investors weighed strong earnings from General Electric against a quarterly loss from Bank of America. Meanwhile, crude oil price dipped USD0.48 to USD89.11/barrel. (OSK Research)


MSC Singapore IPO shares priced at SGD1.75
Malaysia Smelting Corp’s (MSC) public offering shares for a secondary listing on the Singapore Exchange Securities Trading Ltd (SGX) have been fixed at SGD1.75, or RM4.17 a share. The company told Bursa Malaysia yesterday that the issue price was a discount of about 12.21% to the five-day volume weighted average price up to and including 19 Jan of RM4.75 per share. It said that the issue price was arrived at after a book-building process that was determined based on the demand by institutional and selected investors in Singapore and after taking into consideration the market price of MSC shares. The public issue will consist of a public offer of 1m shares in Singapore and a placement of 24m shares to investors, including institutional and other investors in Singapore. (StarBiz)

Bina Puri unit buys land in KK for RM4.5m
Bina Puri Holdings said its wholly owned subsidiary, Bina Puri Properties SB, has acquired a parcel of land in Kota Kinabalu, Sabah of about 1.95 acres for RM4.5m. Group managing director Tan Sri Tee Hock Seng said in a statement yesterday that the land would be developed into a serviced residence, with an estimated gross development value of about RM60m. The land will be used for the development of one block of service apartments consisting 100 units with sizes ranging from 1,500 sq ft to 4,500 sq ft. The land will be developed into a serviced residence, with an estimated gross development value of about RM60m. (StarBiz)

EISB in deal with leading British engineering school
EDUCATION@Iskandar SB (EISB) is on track in its aim to position Iskandar Malaysia's EduCity in Nusajaya as the leading knowledge hub in the region with the latest agreement between the group and one of Britain's top engineering schools. EISB today welcomes The School of Engineering Sciences, University of Southampton, as its latest partner to establish its first out-of-campus school in Nusajaya. Two other faculties that have so far made their commitment to build their campus in EduCity are Newcastle University of Medicine (NUMed) and the Netherlands Maritime Institute of Technology (NMIT). (Business Times)

GSB to sell land, hotel for RM22m
GSB Group's unit, Serta Usaha SB (SUSB), has entered into a conditional sale and purchase agreement with Leopad Holdings SB to sell its property, comprising land and a 13-storey hotel, for RM22m cash. The property is situated in Jalan Kapar, off Jalan Syed Putra, in Kuala Lumpur. GSB, in a filing to Bursa Malaysia yesterday, said the proposed sale is expected to be completed within eight months from the date of the agreement. (StarBiz)

McDonald's Malaysia expects 15-20% increase in sales
McDonald's Malaysia expects to achieve a 15%-20% increase in sales this year, to be driven by a series of innovative ways the company is coming out with to pump up sales. Its managing director Sarah Casanova said that last year, McDonald's Malaysia for the first time in the 29 years of its presence here, surpassed the RM1bn mark in sales. The figure was an increase of 24% from the previous year. She said the fast food company also planned to open 21 new restaurants nationwide and remodel 13 existing restaurants this year as part of its seven innovative ways to strengthen further its presence. (Bernama)

All vehicles must be fitted with air bags from next year
All vehicles, except four-wheel drives, will be required to be fitted with airbags from next year, Transport Minister Datuk Seri Kong Cho Ha said Friday. He said the measure was to reduce risks of death in road accidents. Kong said his ministry would ensure that vehicles manufactured in the country and the national car were equipped with safety airbags before the new regulation was enforced. He said there would be no problem with imported vehicles as most of them came equipped with safety bags. (Bernama)

Salcon aims for 40% revenue contribution from overseas
Salcon is aiming for a 40% contribution to revenue from overseas operations in two to three years, from the current 20%, by securing new water-related contracts in countries like China and India. Executive director Datuk Eddy Leong Kok Wah said the company saw great business opportunities in the water industry regionally as well as domestically, and would be more aggressive in looking out for such jobs going forward. “We have identified three to four projects in China and hopefully, we will be able to finalise one or two deals in these two months’, he told reporters after the company's EGM yesterday. On the local front, Salcon is bidding for the RM1.2bil water treatment plant project under the Langat 2 project with MMC Corp. Salcon subsidiary Salcon Engineering had in November last year been awarded a water-related contract worth RM52.5m from Air Kelantan SB. (StarBiz)

Naim Holdings to develop prime land in Batu Lintang
Sarawak-based Naim Holdings Berhad (Naim) will develop prime land in Batu Lintang, Kuching, into the state's biggest comprehensive mixed development project, costing more than RM300m. Managing Director Datuk Hasmi Hasnan said the proposed development would be sprawled over 13.597 hectares and be completed over 20 years. The project will comprise a four-storey shopping mall with basement car park, office tower block, hotel tower, a 36-storey office tower with basement and elevated carpark, showroom, an 18-storey condominium and a 27-storey high-rise apartment. "We will incorporate a water theme park, a roof garden and incorporate plenty of greeneries so as to come out with a development that is environmental friendly and one that the local populace can enjoy and benefit from," he said. (Bernama)

TEB to raise RM300m from stake sale
Time Engineering Bhd (TEB) expects to raise RM300.57m for the sale of its entire equity stake in TimedotCom Bhd (TdC) to the former's shareholders. The proposed offer for sale will involve a renounceable offer for sale by TEB of up to 626,181,720 ordinary shares of RM1 each in TdC at an offer price to be determined, payable in full upon acceptance, on the basis of eight offer shares for every 10 ordinary shares of 20 sen each in TEB held by the shareholders of the company at a date to be determined. TEB told Bursa Malaysia yesterday that the proposed offer for sale would enable the company to divest its stake in TdC in a manner that would provide the entitled shareholders with an opportunity to have a direct participation in the prospects and future performance of TdC at a discount to the market price. (StarBiz)


HONG KONG: Templeton's Mark Mobius is considering a plan to set up a hedge fund, the emerging market guru said in an e-mail to Reuters on Thursday, Jan 20, a move that would mark a major shift from traditional money managers into the $1.9 trillion alternative asset management industry.

"Yes, we are considering it," said Mobius who oversees more than $40 billion as chairman of Franklin Templeton's Emerging Markets Group.

He did not divulge details of the fund as the plan was not final yet.

The star manager enjoys a strong success in Asia, where his flagship $15.5 billion Templeton Asian Growth Fund has given investors an over-five-fold return in the past decade, making it the second best Asia ex-Japan equities fund over 10 years ending December 2010, according to data from Thomson Reuters Lipper.

Singapore-based Mobius' move comes at a time when large American hedge funds are looking to set up shop in Asia as more and more institutional investors aim to boost exposure to the fast-growing region in search of higher yield.

Assets under management of Asia ex-Japan hedge funds are expected to surge to about $140 billion by the end of 2011 from just over $110 billion now. - Reuters


Bursa, Thai bourse to start cross-trades by year-end
Malaysia and Thailand will start cross-trading of shares by year-end as part of a plan to make Southeast Asian markets more accessible and spur trading, Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said. Singapore, followed by the Philippines, will be next to join the drive to link the Association of Southeast Asian Nations (Asean), Yusli said yesterday. The bourses aim to promote investment in a region with "one of the highest savings rates in the world", Veerathai Santiprabhob, Stock Exchange of Thailand's chief strategy officer, said by phone. (Business Times)

Khazanah portfolio value surges
Khazanah Nasional's investment portfolio value rose to a record high of nearly RM113bn last year, helped by rising asset values and stable and careful debt-positioning. Khazanah Nasional saw the value of its investment portfolio rising by about RM21bn to an all-time high of nearly RM113bn last year, helped by rising asset values and stable and careful debt-positioning. The government's investment arm will remain cautious in its investments in 2011. Its realised asset value (RAV) grew by 23.5% year-on-year to RM112.6bn for 2010 while RAV less total liabilities stood at RM75bn. Khazanah invested almost as much as it earned in 2010, with a total of RM6.5bn investment in 12 transactions and RM6.2bn realised through the divestment of its holdings through seven transactions. It made gains of about RM3.5bn through its divestment activities last year. (Business Times)

Bids for Pos stake selloff
Khazanah Nasional will call for bids to buy its stake in Pos Malaysia this week, as part of what it calls the second stage of its divestment plan of the postal firm. Khazanah owns 32.2% of Pos Malaysia. Its managing director Tan Sri Azman Mokhtar said the first stage of the divestment plan was about ironing out regulatory issues such as the postage stamp hike and salary of postmen that were necessary to start the bidding process. Khazanah is giving bidders about a month to get back to it with proposals. "The next milestone would be the Postal Bill. Hopefully it will go through in the next Dewan Rakyat sitting," Azman said. (Business Times)

Proton to seal £480m Lotus funding soon
Proton Holdings will finalise plans to raise as much as £480m (RM2.34bn) to fund the turnaround plan for its unit Group Lotus plc in as early as February. The funds will mainly come from loans and the rest will be from Proton's additional investments and revenue from Group Lotus, a sports carmaker based in Norwich, the UK. It is understood that CIMB Group Holdings Bhd's chief executive officer (CEO) Datuk Seri Nazir Razak met with Proton's board of directors at Group Lotus headquarters in Hethel, Norwich, although it is unclear what was discussed. Under its five-year turnaround plan, Group Lotus plans to more than double its production to some 8,000 cars a year after 2014 by launching five new models. Proton also expects Group Lotus to be profitable and contributing a significant chunk to its net profit by the end of 2014. (Business Times)

KPJ unit to acquire medical centres in Sibu
KPJ Healthcare‘s wholly-owned Kumpulan Perubatan (Johor) SB (KPJSB) is buying a 100% stake in Sibu Medical Centre Corp SB (SMCC) and Sibu Geriatric Health & Nursing Centre SB (SGHNC). KPJSB will pay RM26.9m for SMCC and RM1.24m for SGHNC. (BT) Please see accompanying report

PBA to cooperate with Indonesian water body
PBA Holdings’ wholly-owned subsidiary, PBA Resources SB (PBAR), and Persatuan Perusahaan Air Minum Seluruh Indonesia PERPAMSI) have signed a memorandum of understanding (MOU) to cooperate in educational and training programmes related to water services industry. Under the proposed cooperation, which is for two years, PERPAMSI will organise, promote and market the Water Management Certified Programme on behalf of PBAR to the relevant parties within the industry in Indonesia. (Business Times)

Puncak seeks clarification from Selangor
Puncak Niaga Holdings (PNHB) is seeking clarification from the Selangor government on certain terms with regard to the latter’s offer for its water assets. Its wholly owned subsidiary, Puncak Niaga (M) SB (PNSB) and 70%-owned unit, Syarikat Bekalan Air Selangor SB (Syabas) have yet to receive any confirmation and/or clarification from the Menteri Besar Selangor (Incorporated) (MBI) on certain terms of the offer documents received by both companies on 7 Jan. (FinancialDaily)

KNM gets 4-year loan extension
KNM Group has received another four years’ extension until 21 Feb 2015 for its term loan facility secured from Malayan Banking (Maybank). The loan’s principal balance outstanding as at 7 Jan 2011 was at RM351.33m. The term loan was for the purpose of refinancing the bridging loan that was secured for the high-profile acquisition of German-based Borsig BmbH, which was completed on 6 June, 2008. (FinancialDaily)

Dayang fixes rights issue at RM1.10
Dayang Enterprise Holdings (DEBH) has fixed the issue price for its rights shares at RM1.10 per rights share,, which is a 63% discount to its closing price of RM2.97 yesterday. The issue price represents about 49.21% discount to the theoretical ex-all price of RM2.1656 per Dayang share. (FinancialDaily)


SP Setia secures prime land in Bangsar, announces RM1.1bn fund raising
SP Setia announced a fundraising exercise via a proposed placement of 15% of new shares to be done via bookbuilding that could easily raise RM1.1bn. It had received an approval-in-principle from the Prime Minister’s Department to talk over terms for the proposed development of a new integrated health and research complex for the Ministry of Health in Setia Alam. In return, SP Setia’s 50% subsidiary, Sentosa Jitra SB, gets 40 acres of prime land along Jalan Bangsar where the present facilities belonging to the health ministry are located. (Financial Daily) Please see the accompanying report

PLUS bins Jelas Ulung’s takeover offer
PLUS will not consider Jelas Ulung SB’s takeover offer after it failed to meet several conditions set earlier. It is understood that Jelas Ulung was not able to cough up the RM50m deposit and a letter from the financier on its ability to complete the transaction. PLUS has accepted UEM Group and EPF’s joint bid. (The Malaysian Reserve)

Hing Yiap receives bid from major shareholder
Hing Yiap has received an unconditional takeover offer from its largest shareholder at RM1.50 a share. The shareholder, Everest Hectare SB, bought a 50.5% stake in Hing Yiap yesterday from some of the group's directors for RM31.3m or RM1.50 a share. Everest, which is partly owned by Ng Chin Huat, managing director of another garment maker, Asia Brands Corp Bhd, ultimately aims to maintain Hing Yiap's listed status. (BT)

Axis REIT to sell Port Klang complex
Axis REIT hopes to complete the sale of an industrial complex in Port Klang for RM14.5m by the end of June this year. It will make a net gain of RM0.8m from the sale to Freight Management. (Business Times)

QL places out 20.8m new shares at RM5.60 each
QL Resources has completed the bookbuilding exercise for the offering of 20.8m new shares pursuant to its private placement exercise, which is estimated to raise some RM116.6m. The issue price has been fixed at RM5.60 per share, which is a 3% discount to its closing price of RM5.76 yesterday. (StarBiz)


Based on OSK Research, they target for Carlsbg price at RM7.20.

CARLSBG (TP RM7.20– BUY) Company Update: Earnings Well-Paced
We gather from our last meeting with management that Carlsberg will fare well in 2011.

Although intense competition will persist vis-à-vis its rival, Guinness Anchor, the upbeat macro factors create favourable conditions for market growth this year. Upgrading our earnings estimates for 2011 and going forward, we derive a higher target price for Carlsberg of RM7.20 from RM6.50 previously. The stock is maintained a BUY. We see Carlsberg paying a higher gross dividend of 35 sen per share versus 27.5 sen previously, translating into a gross yield of 5.4% for FY11. (OSK Research Report)


Suria Capital unit and partners bag RM1bn job
Suria Capital Holdings’ wholly-owned subsidiary, SCHB Engineering Services SB and its consortium partners, have been awarded a RM1bn engineering, procurement, construction and commissioning (EPCC) contract for a power plant project in Sabah. The contract from Kimanis Power SB involves the construction of a 300MW combined-cycle gas turbine gas-fired power plant project in Kimanis, Sabah, Suria Capital told Bursa Malaysia yesterday. The construction period is three years. SCHB's consortium partners include CTCI Corp, CTCI Overseas Corp Ltd, CTCI Malaysia SB and Steamline (M) SB. Kimanis Power SB is a 60:40 joint venture between Petronas Gas (PetGas) and NRG Consortium SB, the business arm of Yayasan Sabah Group. (StarBiz)

Perak may have its own LCCT, says MB
The Perak state government is considering setting up its own low-cost carrier terminal (LCCT) in the northern part of the state. "We have had a few discussions with AirAsia on the matter and we have proposed several locations in Perak, and they have stated their preference for one particular location," Menteri Besar Datuk Seri Zambry Abd Kadir said yesterday. The site is expected to be in the vicinity of Parit Buntar and Taiping, which is in the area of the Northern Corridor Economic Region. Zambry explained that the state government was waiting for the right time to bring it up to the federal government to decide on the suitability and viability of the project. (Business Times)

JCorp plans group-wide transformation
Johor Corp (JCorp) will undergo a group-wide transformation programme which will be implemented in phases over the next few years. JCorp president and chief executive officer Kamaruzzaman Abu Kassim said it was focusing on enhancing its core businesses to bring the state agency to the next level. "The immediate task now is to resolve the debt of RM3.6bn that comes due in mid-2012 and we have identified the means of achieving this," Kamaruzzaman said in a statement yesterday. JCorp has appointed CIMB Bank and Maybank Investment Bhd as advisers for the restructuring. The banks are also the biggest lenders to JCorp. (Business Times)

Approval in writing for Langat 2 plant pending
The Selangor government had in December promised to allow the federal government to build the Langat 2 water treatment plant, which is part of the Pahang-Selangor Interstate Water Transfer Project. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said his ministry, however, was still waiting for the approval in writing from the state government, which was expected to be received this month. “Although we are seven months late, the state government's latest decision means that we can proceed. And we are going ahead with the tender this month or by February. The approval means the last hurdle has been removed,” he said after meeting with the ministry's officers and staff, here yesterday. (StarBiz)

Sime to launch 15 property projects
Sime Darby, through Sime Darby Property, will be launching 15 projects across 10 townships in the first half of this year. Its head of marketing development, Henri Young said, the townships include Putra Heights and USJ Heights in Subang Jaya, Denai Alam (Shah Alam) and Bandar Bukit Raja (Klang). "There is still strong demand for landed and residential properties in Malaysia," he said yesterday. He said the company's previous projects in Denai Alam, Bandar Bukit Raja and the USJ Heights townships were sold out within two months. (Business Times)


Well.. after coming back from a fever. Finally here I am to share one of the equity in Bursa Malaysia today. Its ASB (Advance Synergy Berhad).

After helding this share since the downturn market last year 2010. Finally, its now heading up again since yesterday. Price hit the highest today is RM0.245. After it dropped to the lowest of RM0.185 last year.


China-based shoe manufacturer Maxwell International Holdings Bhd plans to launch its own brand for the China and international markets in three to five years.

Its chairman and executive director, Jenny Li Kwai Chun said on Thursday, Jan 6the company had proven its capabilities to produce high quality sports shoes and also ensure timely delivery to their customers.

Li said the company would leverage on its proven quality track record and extensive distribution network of trading houses and brand distributors to launch its own brand.

“We believe that launching our own brand of sports shoes will further strengthen our position in the sports shoe manufacturing industry in China,” she said in a statement issued after the listing of the company.

“To attract like-minded investors, the group intends to pay not less than 20% of our net profits in the financial years of 2010 and 2011 as dividends. We believe that this practice would create value for our shareholders,” she added.

Based in Jinjiang or the “Shoe City” in Fujian province, China, Maxwell International is an original equipment manufacturer (OEM) and original design manufacturer (ODM) global brand names, including Yonex, Diadora, Kappa, Brooks and Fila. (


MALAYAN BANKING BHD is acquiring a strategic 44.6% stake in Kim Eng Holdings Ltd at S$3.10 per share, amounting to S$798 million (RM1.9 billion) with a view to takeover the Singapore–based broking firm.

In a statement Thursday, Jan 6, Maybank said it had via its wholly-owned subsidiary, Aseam Credit Sdn Bhd (ACSB), entered into conditional sale and purchase agreements (CSPA) with each of Kim Eng’s chairman and chief executive officer Ronald Anthony Ooi Thean Yat and Yuanta Securities Asia Financial Services Ltd (Yuanta) to acquire 15.4% and 29.2% stakes in Kim Eng respectively.

The proposed acquisition will see Maybank emerge as the single largest shareholder in Kim Eng with an intention to acquire the remaining 55.4% of Kim Eng shares and delist the company, it said.

In accordance with the Singapore Code on Take-overs and Mergers, Maybank will be required, upon satisfaction of the conditions set forth in the CSPAs, to make a mandatory offer for all shares not already owned by Maybank, it said.

Maybank said the total estimated purchase consideration for 100% of Kim Eng would be S$1.79 billion (RM4.26 billion).

The lender said that as of Sept 30, 2010, Kim Eng’s total assets and shareholders’ equity amounted to S$2.697 billion and S$938 million, respectively.

The acquisition price represented a multiple of 1.91 times Kim Eng’s reported book value as of Sept 30, 2010, and premia of 15% to the last closing price of S$2.70 and 28% respectively to the one-month volume weighted average price of S$2.42, it said.

“Kim Eng, with its regional platform and well-entrenched leadership position in various markets, represents a unique opportunity for Maybank.

“The proposed transaction is consistent with Maybank’s strategy of developing its pan-Asean financial services platform, and accelerates the build-out of its investment banking and equities platform in the region,” said the bank.

Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said the move was great leap forward for Maybank so early in the new year.

“Kim Eng is a perfect complement to our existing strengths in investment banking and the equities market. It gives us the immediate platform to aggressively build up our global wholesale banking capabilities in Asean and beyond.

“Our combined synergies signal interesting times for us in the region this new year and long term. Immediately, Kim Eng gives us entry into Thailand. We are excited over the tremendous opportunity we will have to grow our business there. We welcome the Kim Eng leadership team and employees into the Maybank Group,” he said.

Maybank president and CEO Datuk Seri Abdul Wahid Omar said this transaction represented an important milestone in the expansion of Maybank’s investment banking franchise, and addresses an important gap in its Asean footprint.

“Kim Eng’s market leadership, complementary geographic footprint, product offerings and distribution capability, combined with our commercial banking franchise, provides immense potential for synergies,” he said.

The transaction is subject to approval from, among others, Bank Negara Malaysia and the Monetary Authority of Singapore.

Maybank Investment Bank and Nomura Singapore Ltd. are joint financial advisors to Maybank on the transaction.

Ooi, who will continue to lead Kim Eng as CEO post the transaction said the firm looked forward to being part of Maybank.

“This transaction allows us to take our business to the next level, with the support of Maybank’s strong balance sheet and well-entrenched client relationships,” he said. (


UMW still keen to list oil and gas division
UMW Holdings, a vehicle assembler and industrial equipment maker, plans to revisit the listing proposal of its oil and gas unit once the division returns to the black this year. The unit, known as UMW Oil & Gas Bhd, which houses exploration operations, fabrication and pipe-manufacturing businesses, is expected to be profitable again by June this year in line with an industry wide turnaround, according to UMW president and group CEO Datuk Syed Hisham Syed Wazir. The move to spin off its oil and gas unit has been delayed several times after the plan was made public in 2008, with officials citing unfavourable market conditions and sentiment for the postponement. (Malaysian Reserve)

TM faces RM25m civil suit from AINB Tech
Telekom Malaysia Bhd was served with a RM25m judgement in default on Monday by a local technology company, which it intends to set aside. AINB Tech (M) SB had served the judgement dated 2 Dec 2010, which included claims for expenses incurred for the purpose of a project known as ‘supply, delivery, installation, testing, commissioning and support of One Number Service’ between the two parties, Telekom said in a Bursa Malaysia filing, yesterday. (Malaysian Reserve)

Priceworth set to seal foreign deal
Priceworth Wood Products is in the final leg of negotiations to manage two timber concessions overseas that have a combined land size in excess of 100,000 hectares, says its executive director Michael Chok Syn Vun. "The concessions are in Papua New Guinea (PNG) and Solomon Islands," Chok told Business Times in an interview at his office in Sandakan, Sabah, yesterday. He said Priceworth would have to spend as much as RM2m in the first phase to help move machinery and other related assets to these places if the deal goes through. Chok did not want to provide a timeline on when a decision will be known. However, it is reliably understood that Priceworth could make an announcement on the matter before the month is over. On the financing, Chok said the company has several options. These include tapping its own cash holdings, which stood at RM12m as at end of its 2010 financial year, or proceeds of its planned warrant exercise. Priceworth is proposing one warrant for every two mother shares at a conversion price of 50 sen a share. (Business Times)

Opposition to MTD’s JV toll hike
MTD Capital Bhd’s joint venture company in the Philippines continues to receive opposition to its toll hike at South Luzon Expressway (SLEX). The highway owner and operator told Bursa Malaysia yesterday that its subsidiary, MTD Manila Expressways Inc, had received a copy of a second supplemental petition for the issuance of a temporary restraining order (TRO) and/or status quo ante order to restrain the implementation of the 290% rise in toll fees at the SLEX. It said the petition was filed in the Supreme Court Philippines by Ernesto B. Francisco, Jr, who had filed the original petition in 2005 and the supplemental petition in August last year. Francisco’s previous petitions were dismissed by the Supreme Court in October last year, which also lifted the previous TRO. MTD said its legal counsels had not received from the Supreme Court any order or notice of the action of the Supreme Court on the second supplemental petition. The new toll prices for Phase 1, Alabang, Muntinlupa City to Sto. Tomas, Batangas, of the SLEX have taken effect from 1 Jan.” (Starbiz)

Etika completes Susu Lembu Asli buy
ETIKA International Holdings Ltd, a regional food and beverage group, has completed its acquisition of Susu Lembu Asli (Johore) Sdn Bhd and Susu Lembu Asli Marketing Sdn Bhd for RM89.5m cash. Etika is one of the world's largest manufacturers and distributors of sweetened condensed milk. In a statement, Etika group chief executive officer Datuk Kamal Tan said the acquisition would generate a new revenue stream for it and contribute positively to earnings with immediate effect. "The companies provide a strategic platform for Etika to gain a foothold in the larger dairy market through Susu Lembu Asli's established and well known brand 'Goodday' and their range of healthier product offerings," he said. (Business Times)


The FBM KLCI continued to charge higher yesterday, this time lifted by banking stocks CIMB, Maybank and Public Bank. At the close, the benchmark index jumped 14.28 points to 1566.17 points, which was more than 5 points off its best for the day. Market breadth was weaker than the day before, with 547 gainers against 320 losers. This was perhaps not surprising given that most regional markets were in the red yesterday. Overnight, the Dow climbed further with a 32-point gain while Europe closed mixed. There was little in terms of news flow and hence local stocks could continue to scale higher although a different group of stocks could take the lead today in typical rotational play.


KUALA LUMPUR: PLANTATION rallied in the morning session on Tuesday, Jan 4, with laggard IOI Corp jumping on the bandwagon following positive outlook for the sector and crude palm oil (CPO) prices despite the profit taking.

At 11.56am, the FBM KLCI was up 11.69 points to 1,545.11, whch was another fresh historic high. Turnover was 807.81 million shares valued at RM1.07 billion. There were 463 gainers, 235 losers and 287 stocks unchanged.

Heavyweight Sime Darby advanced 49 sen to RM9.44, KL Kepong added 40 sen to RM22.78, Chin Tek 25 sen to RM8.80, IOI Corp 23 sen to RM6.06 and Kulim 20 sen to RM12.68.

CPO retreated RM25 to RM3,809.

OSK Research upgraded its target price for Kulim to RM14.75 from RM11.20 previously to factor in its higher CPO price assumption.

The research house said although the stock has outperformed the sector in the past two to three months, its valuation remains inexpensive; hence it is maintaining its Buy call. (


Petra Energy to bag RM100m Murphy Oil job
Petra Energy is close to bagging a RM100m contract from Murphy Oil for hook-up and commissioning works, sources say. It is learnt that Petra Energy could make an announcement to the local bourse soon after ironing out a few minor issues. The job from Murphy is said to be at the same rates as the one offered by Petronas Carigali. (Financial Daily)

RHB Investment tops in deal value, CIMB in number
RHB Investment Bank worked on USD20.6bn of deals, followed by Morgan Stanley, UBS AG and CIMB. RHB Investment Bank (RHBI) emerged as the top adviser for mergers and acquisitions (M&A) in Southeast Asia (SEA) last year in terms of deal value, but rival CIMB Investment Bank dominated in terms of deal count. In second spot on the league table of announced deals was Morgan Stanley, followed by UBS AG and CIMB, which handled USD18bn (RM55.44bn) of deals. CIMB handled 39 M&A deals in total, the most in the region, followed by RHBI's 23. Malaysia turned out to be the second busiest market in the region for M&A activity last year, accounting for 29% of a total 1,523 deals, after Singapore (43%). (BT)

Tesco to spend big on expansion
Tesco Stores (Malaysia) SB plans to invest RM280m and open four more hypermarkets over the 12 months, from March this year. This would bring the number of stores it has nationwide to 40. Tesco Malaysia chief executive officer Tjeerd Jegen is bullish on business this year. "We expect to close the year with double-digit growth," he said yesterday in Mutiara Damansara, Selangor, after the closing of the SME Fair promotion. Last year, Tesco Malaysia made RM3.6bn in revenue. (BT)

Sunway awarded RM219m jobs
Sunway Holdings has secured two contracts totaling RM218.82m for the expansion of a Universiti Teknologi Mara campus and a proposed link bridge in the city centre. The proposed projects are expected to contribute positively to the earnings of Sunway Group for the financial year ending 31 Dec onwards (StarBiz) Please see accompanying report

MK Land sells land for RM130m
MK Land Holdings is selling two plots of leasehold land in Sungai Buloh, Selangor, to Foster Estate SB for RM130m cash. It told Bursa Malaysia yesterday that it had entered into sale-and-purchase agreements with Foster Estate on 30 Dec, 2010 to dispose of 18.54 acres for RM100.78m and another 8.32 acres for RM29.21m. MK Land said it was disposing of the two plots to unlock their value which it had no immediate plans to develop and the proposals were expected to be completed by the end of 2011. On a separate note, MK Land Holdings' deal raised eyebrows because the buyer shares the same set of shareholders for another major deal - the RM26bn bid to take over PLUS Expressways. According to the Companies Commission of Malaysia, Sumami Kiman and Saharuddin Abdullah hold one share each in the RM2 company. These two were also the same shareholders of Jelas Ulung SB, which is making the bid to buy PLUS. (StarBiz and BT)

MRCB-IJM Land merger aborted ‘over CEO choice’
The inability of Malaysian Resources Corp (MRCB) and IJM Land to come to an agreement over who will lead the new entity is the cause of the merger between the two property firms being called off. A source confirmed this to StarBiz yesterday following both companies' announcements to Bursa Malaysia last Thursday that the merger was aborted as they were unable to reach an agreement on the definitive terms and conditions of the proposed merger, following a series of discussions. The source said there was a difference in opinion on whether MRCB chief executive officer (CEO) Mohamed Razeek Hussain or IJM Land CEO-cum-managing director Datuk Soam Heng Choon should lead the new entity. (StarBiz)

Parkson receives licence to operate in Cambodia
Parkson Holdings’ unit has received the nod by the Minister of Commerce of the Kingdom of Cambodia to operate department stores in the Cambodia. Parkson Holdings added that the establishment of Parkson Cambodia did not have any material impact on the Group for the financial year ending 30 June, 2011. (FinancialDaily)

94.69% acceptance for United Kotak takeover
Oji Paper Asia SB (OPA) has received acceptances amounting to 94.69% of United Kotak’s shares on the closing date of its takeover for the latter last Friday. On Oct last year, OPA made a conditional takeover offer to United Kotak by acquiring all the voting shares in the company at an offer price of RM1.40 each. (FinancialDaily)


SAPURACREST PETROLEUM BHD shares advanced on Tuesday, Jan 4 as CIMB Research maintained its outperform call on the stock at RM3.13 and raised its target price to RM3.95 from RM3.30 previously.

At 10.45am, SapuraCrest was up nine sen to RM3.22 with 867,800 shares done.


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