SIME,MAS,AIRASIA,PARKSON, MTD CAP

Sime Darby Bhd’s (SIME MK, Hold, TP: RM8.10) acquisition of Teluk Ramunia fabrication yard and assets for RM530m is a premium of 21.92% over an independent valuation of RM434.69m in the open market. Ramunia Holdings Bhd said yesterday Irhamy & Co Chartered Surveyors was appointed by the company to carry out an independent valuation exercise on
the yard, with all moveable and immoveable assets under the proposed disposal to Sime Darby. “Irhamy & Co’s valuation
reflects the open market value of the assets as a specialised property which is rarely sold in the market and the fact that the
yard was initially reclaimed from the sea,” it said. Ramunia said the estimated open market value of the assets was based on
the recent transactions of industrial properties. It added that adjustments were made to reflect the advantages and
disadvantages of the assets against the prevailing value. It added that the replacement cost approach was used to determine
the current cost of replacement of a similar yard. (Financial Daily)
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Malaysian Airline System Bhd (MAS) (MAS MK, Sell, TP: RM2.00) expects to rake in an incremental revenue of RM2bn
from the deployment of SITA’s IT system, including the newly launched MHmobile-flymas.mobi service, over the next
10 years, said MAS managing director and CEO Tengku Datuk Azmil Zaharuddin. He said the national carrier had earmarked
investments of RM480m over the next decade for its integrated IT platform to provide customers with seamless service
delivery. Developed together with SITA lab, flymas.mobi allows customers to book, pay and check in using their mobile
phones. Tengku Azmil said the main objective of flymas.mobi was to provide convenience to its 14m customers rather than
cost-savings for MAS. He said MAS would not impose convenience fees on its customers. All major operating systems and
most phone manufacturers support the flymas.mobi applications. (Financial Daily)
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AirAsia (AIRA MK, Buy, TP: RM1.67) has set its sights on the US market. Datuk Tony Fernandes, a member of the
entourage accompanying the Prime Minister Datuk Seri Mohd Najib Razak to the city, said that he was “working” towards
establishing a regular service to the east coast. “We are very keen to enter the US market which has good business potential,”
he disclosed. He hoped to start flights to an east coast airport, either New York or New Jersey, in 2010. According to
Fernandes, the airline also plans to start services to San Francisco, Los Angeles and Hawaii. However, things need to be
sorted out first, at the government-to-government level. (Malaysian Reserve)
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Parkson Corporation Sdn Bhd to further expand in Malaysia. The retail arm of Lion Corporation Bhd will focus on new store
openings and maintaining its leadership position in the local retail market, said Parkson Retail Group MD Alfred Cheng. He
said, “We plan to expand, adding 15% more space each year and our venture into Setia City Mall as an anchor retailer fits
perfectly into our strategy. We have reinvested around RM200m for the past five years to increase market share…it is likely
that when Parkson Setia City Mall opens at the end of 2011, it will be our 40th store in Malaysia and 105th store globally.”
According to Cheng, the retailer is expected to invest between RM10m to RM12m for store refurbishment, while indirect
investment from its merchant stores are expected to be RM25 to RM30m. The group manages 86 stores in three countries –
Malaysia, China, and Vietnam – and is expected to open its first store in Cambodia in early 2011. (Financial Daily)
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MTD Capital Bhd’s partnership with the Philippine National Construction Corp (PNCC) in the South Luzon Expressway
(SLEX) has run into problems after an entity controlled by the Malaysian company was prevented from taking over the
management of the highway. According to a news report from the Philippines, 30 employees of Manila Toll Express System
(MATES), in which MTD and PNCC hold a 30% and 40% direct equity stake, respectively, were stopped by PNCC from taking
over management of the SLEX, including toll collection, which was to commence on Monday. In a turn of events in which MTD
is understood to be currently “taking action to protect its rights,” PNCC reportedly detained the employees for 4 hours and took
their mobile phones away, a move they said was to protect the interest of their own workers. According to PNCC, it had taken
the action as it had not received any instruction that MATES had been allowed to take over the expressway, although MATES
was reported to have received the green light from the Philippine government to do so. PNCC’s concession agreement to
operate and manage SLEX is said to have expired in May 2007. PNCC said, however, they would turn over the management of
SLEX when MATES presented them with the appropriate documentation regarding the takeover. Under the agreement, MATES
was to take over operations of the expressway, following the completion of the project. (Financial Daily)