AIRASIA,NSTP,DRBHICOM,HUNZA,HARTA

The proposed partnership between AirAsia Bhd (AIRA MK, Buy, TP: RM1.67) and Jetstar is nearing fruition after a yearof talks and the deal will be announced in the first week of January. A media conference has been scheduled for Jan 6 inSydney where both parties and Qantas will announce the details of a strategic agreement and how these parties will work“innovatively together” so as to drive greater cost efficiencies across AirAsia and Jetstar. AirAsia group CEO Datuk Seri TonyFernandes and Jetstar CEO Bruce Buchanan will be at hand to present the details. Jetstar’s parent, Qantas, will berepresented by its CEO Alan Joyce. (Starbiz)
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AirAsia (AIRA MK, Buy, TP: RM1.67) finished the last month of 2009 with “record sales” while forward bookings for thefirst 2 months of 2010 are looking very strong, said its group CEO Datuk Seri Tony Fernandes. “We cannot reveal our 4Qfinancial numbers yet but from a sales point, we have had record sales for December and it has been the best month ever inthe history of the airline in all the 3 countries (Malaysia, Indonesia and Thailand) that we operate in. “January sales are betterthan what we have seen before and sales in February, with the Chinese New Year (coming), are looking very strong,”Fernandes said yesterday. At the end of today, the budget airline would have carried a total of 24m passengers and whencombined with its sister airline AirAsia X, the total is over 25m. “That makes us one of the larger airlines in the region,” he said.Fernandes is bullish on 2010, saying it will be a “very promising year for us”. Fares will certainly go up as the economicrecovery lifts demand for air travel. “Even a RM10 rise in airfares will be good for us as we fly more than 25m passengers ayear,” Fernandes said. Fernandes also expects AirAsia X to break even this year, with the airline increasing frequencies toexiting destination and ply new routes such as New Delhi, Mumbai and Paris. (Starbiz)
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The New Straits Times Press (M) Bhd (NSTP) is selling non-revenue generating assets, including land in BukitJelutong near Shah Alam, as well as re-evaluating the commercial viability of other properties it owns to raise fundsfor future expansion. According to sources, management officials from Media Prima Bhd (MPR MK, Hold, TP: RM1.69),including group MD Datuk Amrin Awaluddin and NSTP, who were at a meeting yesterday to brief NSTP employees on MediaPrima’s revised offer to take NSTP private, gave out some details on the expansion plans. On Nov 12, Media Prima hadrevised its offer to NSTP shareholders, offering 1.2 Media Prima shares for every NSTP share held. The takeover offer datewas extended to Jan 4 with the revised offer. The sources said part of the proceeds from the sale of land would go towards thesetting up of printing plants in Sabah and Sarawak. They said Media Prima’s management also said that the future plans forNSTP would be revealed next month. Media Pima announced yesterday that it has to date received acceptance of more than92.9m shares or 42.77% from NSTP shareholders as a result of the proposed take over. This gives Media Prima a total of86.06% of the voting shares in NSTP, the group said. (Starbiz)
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DRB-Hicom Bhd aims to introduce its own hybrid car by 2012 in line with the government’s objective to promotehybrid and electric vehicles and development or related infrastructure. Group director of automotive Datuk Nik HamdamNik Hassan said the company was currently in talks with three potential partners to manufacture the car and hoped to finalisethe deal next year. “Besides the assemble, we want to have our own hybrid car that we can call the Hicom hybrid. It will take 18to 24 months to have this car to come on stream,” he said. Nik Hamdam, who declined to name the parties, said however thatone of them was DRB-Hicom’s existing partner. (Financial Daily)
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US car manufacturer General Motors Corp (GM) is in talks with several potential parties, including the Naza group, forthe exclusive distribution of Chevrolet vehicles in Malaysia and will have something to announce by the second week ofJanuary, according to an industry source. The source said GM had “excellent plans” for the Malaysian automotive market,adding that there would be new Chevrolet model launches for 2010, including the Chevrolet Cruze which was supposed tomake its debut in the 2H09. In the interim period, the source said GM had turned to listed Permaju Industries Bhd’s outfit,Cergazam Sdn Bhd, to manage the franchise until a new partner was found. DRB-HICOM Bhd group director for automotiveDatuk Nik Hamdan Nik Hassan said yesterday that the partnership between DRB-HICOM and GM ended mainly because bothparties had very different business models. (Starbiz)
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Hunza Properties Bhd is buying parcels of freehold land at Bayan Baru, Penang from two individuals for RM82.09mcash. Hunza had entered into a sale and purchase agreement with Ong Thye Peng and Ong Gaik Kee, both trustees of theestate of deceased Ong Joo Sun, for the proposed acquisition. The company said it planned to develop the parcels of land intoa multi-billion ringgit-integrated development, which would serve as a “mini city”. (Financial Daily)
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Malaysian glove makers, including Hartalega Holdings Bhd, could continue exporting to the US after the Court ofAppeals ruled in favour of the manufacturers over a patent tussle with giant firm Tillotson Corp. Hartalega told BursaMalaysia that on Dec 14, the US Court of Appeals had decided that there was no violation of Tillotson’s Trademark and that theTillotson patent was invalid, upholding the earlier decision made by the US International Trade Commission (ITC). (FinancialDaily)
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Selangor government has agreed to give state-controlled property development company Kumpulan HartanahSelangor Bhd (KHSB) a RM151.1m grant, with no repayment obligation. KHSB said Menteri Besar Selangor Inc (MBI)would distribute the grant to KHSB on behalf of the state “in order to ease KHSB’s burden”. The state own 69% of KHSB, withthe majority of 56.57% held by Kumpulan Perangsang Selangor Bhd. KHSB said the grant could include the transfer and/oralienation of state-owned land, as agreed and accepted by KHSB only, at no cost to KHSB. KHSB could forward all claimsmade by the state to MBI and MBI would undertake to immediately pay on KHSB’s behalf the applicable sums, provided thepayments made did not exceed the value of the grant. It added that the grant could also be in the form of a waiver by the stateon any land revenue, premium, or rent payable in respect of alienated land due or to become due to the state. (Financial Daily)
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Work on the multibillion Pahang-Selangor Raw Water Project has picked up pace with the government opening thetender for the Kelau Dam and related works. According to an advertisement by the Ministry of Energy, Green Technologyand Water, it is inviting bids from parties that had successfully carried out construction projects of a comparable size andnature. The lead partner or sole bidder for the job should have an average annual turnover of not less than US$30m (RM103m)in the last five years while other partners must have an average of US$15m. The bid documents will be available from Jan 5 to19, 2010 and the closing date is on March 9, 2010. (Financial Daily)