SIME,AIR ASIA, MUHIBBAH,IJM,TNB,

Sime Darby Bhd (SIME MK, Hold, TP: RM8.10) has priced its RM2bn three-, five- and seven-year Islamic medium-termnotes (IMTN) issued under the Islamic medium-term note programme of RM4.5bn and Islamic commercial paper/IMTNprogramme of RM500m with a combined master limit of RM4.5bn. The IMTNs were issued under the Islamic principle ofMusyarakah and carries a semi-annual profit rate of 3.55% per annum for the three year tranche with a nominal value ofRM300m, 4.38% per annum for the five-year tranche with a nominal value of RM700m, and 4.75% per annum for the sevenyeartranche with a nominal value of RM1bn. (StarBiz)

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AirAsia (AIRA MK, Buy, TP: RM1.80) will defer delivery of another eight Airbus A320 aircraft due in 2010 by four yearsto 2015 because of infrastructure constraints at its Kuala Lumpur air terminal. Until a new Low-Cost Carrier Terminal wasconstructed, the current overcrowded budget terminal would not be able to accommodate AirAsia’s fleet expansion plans, itsaid. The decision to further scale down on deliveries would allow AirAsia to avoid the costs of having idle or under-utilisedaircraft, it said. (StarBiz)

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Muhibbah Engineering Bhd (MUHI MK, Sell, TP: RM1.11) has commenced arbitration against Gerbang Perdana Sdn Bhdin respect of a claim amounting to about RM32.7m. Muhibbah said that the main contractor, Gerbang Perdana, hadappointed it to undertake the road bridge-marine approach subcontract but, when the overall project was cancelled in 2006,Gerbang Perdana had ordered a cease of works on the subcontract but, to date, has not fully paid the company. Muhibbahsaid it has since commenced mediation and followed by arbitration in respect of claim against Gerbang Perdana. It said that,should the arbitration be successful, it was expected to have positive financial effect to the group. (Malaysian Reserve)

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The investment vehicle set up jointly by 1Malaysia Development Bhd (1MDB) and PetroSaudi International Ltd islooking at acquiring a “strategic” stake in IJM Corp Bhd (IJM MK, Hold, TP: RM3.64). The joint venture (JV) may acquirethe IJM stake from Zelan Bhd, which holds 82.33m shares or an 8.77% stake in IJM as of June 30. The stake was valued atRM395.2m based on IJM’s share price that closed at RM4.8 last Friday. The JV’s intention for the acquisition is to tap IJM’sconstruction expertise, which could be useful for some of the projects it plans to invest in, and not to take over the constructionoutfit. (The Edge)

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The study paper on the review of the national five fuel policy is almost completed, Prime Minister Datuk Seri MohdNajib Razak said yesterday. “We are in the process of reviewing the country’s fuel mix. This will not change in the immediateterm but in the medium and long term” he said. The Energy, Green Technology and Water Ministry and Tenaga Nasional Bhd(TNB) (TNB MK, Buy, TP: RM9.90) are fine tuning the study paper before submitting it to the government, he said afterlaunching the 60th anniversary celebrations of Lembaga Letrik Negara/TNB in Kuala Lumpur. Mohd Najib said the countryneeded to reduce reliance on natural gas and coal as energy sources and look at other sources like hydro-electricity andrenewable energy. Asked whether nuclear energy was covered, Mohd Najib said it was being studied and that nuclear energygeneration required a long period with process of planning to the first nuclear reactor for initial energy generation taking 12 to15 years. He also said that TNB needed to be sensitive in supplying electricity as even a disruption of one or two minutes couldcause losses amounting to billions of ringgit. (Malaysian Reserve)

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PPB Group Bhd has proposed to dispose of its 100% equity interest in Malayan Sugar Manufacturing Co Bhd (MSM) toFelda Global Ventures Holdings Sdn Bhd (FGVH) for RM1.22bn. It also proposed to sell 50% of its equity interest in KilangGula Felda Perlis Sdn Bhd and land in Chuping, Perlis, to FGVH for RM26.3m and RM45m respectively. The purchaseconsideration represents price-to-earnings ratio of 9.78 times and price-to-book ratio of 2.46 times. PBB’s cost of investment inMSM was RM50.8m, which was made over the period from 1976 to 1999. The proposed disposal of MSM will result in gains ofRM1.17bn at company level and RM723.81m at group level. (StarBiz)* * * * *