SIME, PELIKAN,YTLP,GREEN PACKET, BERJAYA LAND

Sime Darby Bhd (SIME MK, Hold, TP: RM8.10) which owns 220,000ha of oil palm estates in Liberia, plans to strengthen its presence on the African continent and is eyeing more land in Cameroon, Congo and South Africa. Sime Darby Plantation Sdn Bhd managing director Datuk Azhar Abdul Hamid said the conglomerate's plantation arm had received many invitations to Africa. "But nothing has been formalised and we are still at the early stage. In Liberia, we already have a team on the ground," Azhar said. Azhar said the expansion is part of a long-term strategy to double planted areas to one million hectares and be nearer to the growing markets of Europe and the US. (BT)

* * * * *
Pelikan International Corp Bhd (PELI MK, Buy, TP: RM2.21) has agreed to acquire a 66% stake in Herlitz AG from global private equity firm Advent International Corp for RM227.25m. Herlitz offers some 15,000 products in the stationary and papetarie assortment across the European market under the ‘Herlitz’, ‘Falken’ and ‘Susy Card’ brands. The company reported a turnover of 301.9m euros in financial year 2008 and earnings before interest and tax of 3.7m euros. Pelikan late last month accnouned a proposal to hold a rights issue to raise as much as RM188.74m for working capital purposes in a release to the exchange. (Malaysian Reserve)

* * * * *
YTL Communications Sdn Bhd (YTL Com) which Is planning a commercial nationwide roll-out of its WiMAX wireless service in July next year, will also use its network as a test bed for WiMAX-enabled devices and applications. YTL Power Bhd (YTLP MK, Buy, TP: RM2.50) unit is slated to sign agreements with several partners, including US-based chipmaker GCT Semiconductor Inc to fund a global programme to get innovators and creators from all over the world to develop applications for WiMAX. This move may also see device makers using Malaysia as their springboard to test their WiMAX-enabled devices. “What we are building is a new 4G highway that would be available nationwide and this will enable people to ride on a higher plane with our mobility solutions,” YTL Com executive director Datuk Yeoh Seok Hong said. YTL Com is investing RM2.5bn for the nationwide roll-out and has teamed up with several international partners to deploy its network. Asked about the pricing for the services, Yeoh said it was not ready yet, but added: “From a pricing point of view, it has to be relevant even though we are investing and our shareholders will demand that we make money.” (Starbiz)

* * * * *
Packet One Networks (M) Sdn Bhd (P1), a unit of Green Packet, plans to allocate RM200m to RM300m for capital expenditure (capex) next year to expand its coverage, which will include Sabah and Sarawak, CEO Michael Lai said. He said P1 had spent RM300m over the past 13 months to roll out its WiMAX programme and was on track to achieve network coverage of 45% of Peninsular Malaysia’s population by 2010, and 65% by 2012. Currently, P1 has 35% network coverage in the peninsula. Lai said to achieve network coverage of 65% or more, the company would need to invest between RM1bn and RM1.5bn. “The target is to work within RM1bn to cover 65% of the population but ideally, we want to reach 75% to 85% coverage of the population, then top up with RM500m investment, if needed,” he said. He also said the company expected to break even on its investment outlay for WiMAX by end-2010. (Starbiz)
* * * * *
Berjaya Retail Bhd (BRetail) group expects its 7-Eleven convenience-store chain to record substantial cash inflow of about RM12.5m and RM25m for financial years ending Dec 31, 2009 and 2010 respectively from its franchise scheme. BRetail is seeking to list on Bursa Malaysia. On a draft prospectus posted on the Securities Commission website, BRetail said the cash inflow would be from the franchise fee, license fee and deposits. “With a cash inflow of RM250,000 from each franchised store, 7-Eleven group plans to reinvest the amount to set up a new convenience store costing about RM260,000. This will help accelerate new store growth without substantial net cash outflow from the 7-Eleven group,” it said. BRetail also plans to provide services including bill collection for utility companies, telcos, and others. 7Eleven (M) Bhd and Singer (M) Sdn Bhd are the two companies injected into BRetail. The group plans to expand its 7-Eleven network by planning to open 100 new stores in 2010. BRetail also said, “Singer plans to increase the number of Singer branches and sales agents to 1,000 within the next five years.” (Financial Daily)

* * * * *
Chemical Co of Malaysia Bhd (CCM) is planning a series of restructuring exercises to strengthen its financial position going forward following a downgrade in the outlook of the long-term ratings for its bond issue. Finance director Ahmad Mustaffa Abdul Manaf said the group would be looking at appropriate restructuring of its balance sheet as well as improving
returns and margins from its businesses in order to improve its immediate and mid-term liquidity. “In terms of the group’s debt portfolio, with the scheduled refinancing of the RM200m bond at the end of this year, our borrowings will be restructured and spread into longer-term duration in order to improve liquidity,” Ahmad Mustaffa said. The group was also proceeding with disposals of its non-core (property) assets as part of its commitment to strengthen its financial position. Going forward, CCM would continue to pursue a high-growth strategy by focusing on regional expansion, according to Ahmad Mustaffa. (Starbiz)
* * * * *
Damansara Realty Bhd (DRB) is planning a corporate restructuring to carve out its unprofitable businesses and streamline revenue streams to benefits its shareholders. It has proposed to exchange its entire paid-up share capital with shares of its wholly-owned subsidiary, Insan Kuality Sdn Bhd (IKSB), with cash payment to existing DRB shareholders. The proposal will involve exchanging 250.14m DRB shares of 50 sen each with 150.08m shares of 50 sen each in IKSB and a cash payment amounting to RM80.05m. The cash payment is 0.6 new IKSB share and payment of about 32 sen in exchange for everyone DRB share. It also proposed for the IKSB to buy from Johor Corp (JCorp) entire equity in Tanjung Langsat Port Sdn Bhd (TLP) for about RM249.05m and the entire equity in TPM Technopark Sdn Bhd (TPM) for RM54.8m. The total acquisition price of about RM303.85m will be paid for by issuing 229.73m new IKSB shares at 80 sen each and the remaining RM120.10m to be set off against an amount due from JCorp. The corporate restructuring will eventually involve the transfer of DBB’s listing on Bursa Malaysia to IKSB. (BT)
* * * * *
KPJ Healthcare Bhd, the healthcare unit of Johor Corp, expects revenue to swell to RM2bn within 5 years by
expanding its hospital reach in the local market. “KPJ crossed its first billion after 26 years in the business. With the speed
the company is at right now, I am confident we can cross the next billion in less than 5 years,” managing director Datin Paduka
Siti Sa’diah Sheikh Bakir said. Under the expansion plan, KPJ wants double sales by either organic expansion or via mergers
and acquisitions. It is targeting to add between 2 and 3 hospitals a year. (BT)
* * * * *