15.12.2009local business news

Malaysia’s largest lender Malayan Banking Bhd (Maybank) (MAY MK, Buy, TP: RM8.10) yesterday denied news reports
that it would bid for a stake in Siam City Bank Pcl (SCIB), Thailand’s 7th largest bank in terms of asset size. It was
reported that HSBC plc, Maybank, Standard Chartered plc, Australia & New Zealand Banking Group, Thanachart Capital and
Bank of Nova Scotia were among the banks expected to make bids for a stake in SCIB today. Speculation was rife that
Maybank was among the potential buyers of the stake after the Financial Institutions Development Fund (FIDF), the rescue
arm of Thailand’s central bank completes the sale of its 47.58% stake in SCIB in 1Q10. “Maybank wishes to emphasise that
our regional growth strategy remains focused on organic growth in our key markets and in creating synergies to extract best
value from our regional acquisitions,” the bank said. (Financial Daily)
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Magna Prima Bhd’s hopes of acquiring a piece of land in Bukit Jalil from Ho Hup Construction Bhd were rekindled
when the High Court ruled in its favour an application to grant an injunction to stop the sale of the land by the
construction company to third parties. In an announcement on Monday, Magna Prima said that the court granted its wholly
owned subsidiary Permata Juang (M) Sdn Bhd an injunction to stop and/or restrain Bukit Jalil Development Sdn Bhd, a 70%
subsidiary of Ho Hup, or their servants and agents from disposing of the parcel of land via a tender and or in any other manner
until the completion of the trial. The land in contention was to be sold for RM19.4m. (Financial Daily)
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Permodalan Nasional Berhad (PNB) is looking at the possibility of developing a 100-storey building near Stadium
Merdeka and Stadium Negara in Kuala Lumpur if the project is viable. Group chief executive and president Tan Sri Hamad
Kama Piah Che Othman said the board of directors of PNB will study all possibilities before making any decision. The report,
quoting sources, said construction work on the building was expected to commence in the first quarter of next year. It said the
proposal on the building had been also submitted to the Ministry of Finance and that it was being studied in detail. PNB is
planning to develop the 72 hectare area surrounding the country’s oldest stadiums into a mixed development project.
(Malaysian Reserve)
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Permodalan Nasional Bhd (PNB), Malaysia’s biggest state asset manager, said it is seeking ways to “maximise”
returns on its newly merged property unit, including a possible initial share sale. “It depends on the market conditions
and the value that we create.” PNB CEO Tan Sri Hamad Kama Piah Che Othman said. PNB, which manages more than
RM100bn of assets, has completed the merger of its 3 property companies, Island & Peninsular Bhd which was bought for
RM670.5m, Petaling Garden Bhd for RM477m in 2007 and Pelangi Bhd 2 years earlier, after taking them private, Hamad Kama
Piah said. PNB “hopes” the Malaysian stock market would do better next year as the government pushes through its efforts to
revive the economy, he said. (Financial Daily)
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John Master Industries Bhd (JMI), a clothing and property developer, obtained regulatory approval to transform into a
China-based textile fabric maker. The Securities Commission (SC) had given permission to inject the assets of fabric-maker
Be Top Group Ltd and its subsidiary Top Textile (Suzhou) Co Ltd, which it plans to buy for RM393.2m, into the group. The SC
also approved a rights issue which allows JMI shareholders to re-invest in the company’s new China-based business. JMI also
plans to change its name to Sinotop Holdings Bhd. All these plans are subject to JMI’s shareholders’ approval. (BT)
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Power utility giant State Grid Corp of China (SGCC) plans to invest US$6bn to US$8bn to set up one of the world’s
largest aluminium smelter plants and three hydroelectric dams in Sarawak through a joint cooperation with 1Malaysia
Development Bhd (1MDB). 1MDB is a strategic development company wholly owned by Minister of Finance Inc, and will coinvest
in the project via cash or “assets” or both. The investment in the smelter plant is estimated to be around US$3bn.
According to a source, “The Chinese partner has technical expertise and considerable capital. 1MDB can help facilitate the
investment from the standpoint of the state and federal governments and power through all the bureaucracy.” SGCC is ranked
third in China’s Top 10 Enterprises by Forbes, and its investment will boost the Sarawak Corridor of Renewable Energy
(SCORE). (Star Biz)
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