BOUSTEAD, AXIATA,PLUS,HEKTAR REIT, MAHB,FABER,KPJ

Boustead Naval Shipyard Sdn Bhd, a unit of Boustead Holdings (BOUS MK, Sell, TP: RM3.05), is currently negotiatingwith 3 oil majors over ‘big contracts’. Group MD vice admiral (R) Datuk Seri Ahmad Ramli Mohd Nor said, “The 3 oil majorsare talking to us currently. They are visiting and auditing our facilities. Boustead Naval had previously completed ahead ofschedule two projects with Exxon Mobil. Datuk Ramli also said that a floating hotel the company was constructing for a foreignclient was near completion and due for delivery in June next year. He added, “The company is actively pursuing opportunitieslocally and on the foreign front.” Boustead Naval has 4 shipyards, Lumut for its military and naval projects, Penang for oil andgas fabrication, Langkawi for leisure yacht and fast boat, and Ghana for maintenance. (BT)

* * * * *

Celcom (M) Bhd, a unit of Axiata (AXIATA MK, Hold, TP: RM3.13), is gearing up to double the number of its mobilebroadband customers to 1m next year. CEO Datuk Seri Shazalli Ramly said Celcom had 475,000 mobile broadbandcustomers as at Sept 30 and he was confident of breaching the 500,000 mark by year’s end. “Operators including Celcom willbe under pressure next year as well given that we have to achieve the Government’s target of having a 50% internetpenetration rate,” he said, adding that mobile broadband would be the company’s major focus next year. (Starbiz)

* * * * *

PLUS says 20% toll reduction not feasible. PLUS Expressways Bhd is not able to match Asas Serba Sdn Bhd’s offer of a20% discount on the toll rate, considering the high investments needed in upkeeping highway facilities and safety conditions. Inits proposal to acquire PLUS and the country’s other toll concessionaires, Asas Serba claimed that it will reduce toll rates by20%. PLUS MD Noorizah Abd Hamid said the proposal is not feasible as PLUS reinvests 45% of toll collections to keephighways and facilities in good condition. She added, “For every RM1 collected, 24 sen is spent on operations andmaintenance, 21 sen on upgrade of rest areas and repair pavements, 38 sen for debt repayment and the balance is dividendfor shareholders.” Asas Serba had previously announced plans to buy all 22 toll concessions nationwide, and is awaiting theEconomic Planning Unit’s toll study, due at year-end. (Malaysian Reserve)

* * * * *

Hektar REIT in talks to buy new assets and plans to sell more units to fund future purchases. Hektar Asset ManagementSdn Bhd Chairman and CEO Datuk Jaafar Abdul Hamid said, “We are in the midst of negotiating for new acquisitions.” Most ofthe potential buys are in Peninsular Malaysia and Hektar was in talks with township developers and other asset managers, headded. “The typical shopping acquisition is quite significant, starting from RM100m and above, and will definitely require us toraise equity-financing to place that acquisition in the REIT,” he said. Hektar REIT owns the Subang Parade shopping centre inSubang Jaya, Makhota Parade in Malacca, and Wetex Parade in Muar, Johor. (BT)

* * * * *
Malaysia Airports Holdings Bhd (MAHB) expects passenger volumes to grow between 4% and 5% in 2010 by‘conservative estimates’. Passenger volume may hit 49m for this year after MAHB offered cash perks to airlines amidstindications that economic recovery would boost air travels, according to MD and CEO Tan Sri Bashir Ahmad. “We expect anincrease in tourist arrivals to Malaysia despite the difficult year. We have seen indications of economic recovery and we think itwill improve,” he said. Passenger movements at end of September hit a total of 36.8m while for the quarter between Augustand September there were 13.21m passengers at all of its airports. (Malaysian Reserve)

* * * * *
Faber Group Bhd is toying with the idea of venturing into the healthcare business by owning hospitals in the future tobroaden its income streams, said its managing director Adnan Mohammad. The group intends to diversify into newbusinesses as well as to grow its overseas revenue in the Gulf region and India, according to Adnan. According to Adnan, thefirm is bidding for a 3 year hospital facilities management job in Abu Dhabi. In India, Faber has a presence in New Delhi,Hyderabad and Chenai (Financial Daily)

* * * * *

KPJ allocates RM100m to grow hospital network. KPJ Healthcare Bhd plans to spend up to RM100m next year to grow itschain to cater to expected rise in demand for healthcare services. The expansion exercise may entail the acquisition of anexisting business or the construction of new hospitals to bolster the 19 hospitals currently under its network. MD Datin PadukaSiti Sa’diah Sheikh Bakir said, “We are looking at organic growth as well as potential acquisitions. We are inviting others to joinus to enjoy the economies of scale.” She also added, “The target is to grow by one or two hospitals every year.” (MalaysianReserve)