Highlights of the day: UMW still keen to list oil and gas division, TM faces RM25m civil suit from AINB Tech, Priceworth set to seal foreign deal, Opposition to MTD' JV toll hike, Etika completes Susu Lembu Asli buy

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)