EONCAP, PUNCAK,SUNCITY, HOHUP, DRB-HICOM, GADANG

EON Capital Bhd (EONCap) has received a time extension of 5 days from Hong Leong Bank Bhd (HLBB) (HLBK, Hold, TP: RM8.71) to review the latter’s RM4.92bn takeover offer. EONCap said it had on the same day requested for a time extension and HLBB had granted it until Feb 2 to respond to its proposed takeover of its assets and liabilities. It is learnt that EONCap’s board had spoken to some of its major shareholders, namely Khazanah Nasional Bhd and Employees Provident Fund, and they had agreed with the board that it should ask for more time to review the offer more closely. Based on EONCap’s announcement, its board had only sought a time extension and did not request for changes to be made to the terms and conditions of HLBB’s offer. “The additional time will allow the board to fulfil its fiduciary duty to consider every reasonable option for securing the best value for all shareholders,” EONCap chairman Tan Sri Syed Anwar Jamalullail said. Under the terms set by HLBB in its offer, it had the right to withdraw its offer if EONCap was in acquisition talks with other parties. Another condition was that once the offer was accepted by EONCap, it would be binding on both parties for the sale of EONCap’s entire assets and liabilities. It was reported that EONCap might seek to reset some conditions put in by HLBB, which included being able to talk to HLBB on a non-exclusive basis. (Financial Daily)
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The suit between Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Puncak Niaga Holdings Bhd’s (PNH MK, Hold, TP: RM3.66) 70% owned subsidiary Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) has been set for mention at the KL High Court on Feb 22. Splash is suing Syabas for RM196.34m in alleged outstanding amounts, not including interest. According to Puncak Niaga, Splash’s claims were in respect to a supply charge and capacity charge from
Syabas under a privatisation agreement dated Jan 24, 2000, a Feb 3 2005 supplemental agreement and a novation agreement. Puncak Niaga announced that the KL High Court allowed Konsortium Abass Bhd’s application for adjournment of the hearing is now fixed for Feb 3. Konsortium Abass is suing Syabas for RM63m for non-payment of water invoices. (Star Biz)
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Sunway City Bhd (SCITY MK, Buy, TP: RM3.60) has hired RHB Investment Bank and Credit Suisse as the main coordinators for the planned listing of its REIT in Malaysia. The listing of the REIT, the biggest ever in Malaysia, is likely to happen in the first half of 2010, and the company may raise about RM1bn in its public offering said sources. The REIT will have a market cap of more than RM3bn. Credit Suisse will act as the international global coordinator while RHB will handle all domestic issues. Sunway City said earlier this month the REIT would group at least four properties in KL and one in Penang. (Star Biz)
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Ho Hup Construction Co Bhd’s management acknowledged the possibility of a “third force” emerging in the tussle for control of the company. The company said, “Fuelled by the tussle between two opposing shareholders, the third force appears to be preparing for a coup come Feb 4.” Ho Hup’s EGM is scheduled for Feb 4, and its outcome will determine the direction in which the company is going to take. The statement implies the third force is acting in concert with former MD Datuk Low Tuck Choy. (Star Biz)
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DRB-Hicom Bhd, which mainly assembles and distributes automobiles, plans to pay RM80.83m to privatise its 79%- controlled unit Edaran Otomobil Nasional Bhd. The proposed privatisation would see Edaran’s shareholders receiving RM1.55 for every share they hold, or a 174.3% premium prior to the shares suspension on March 11, 2008. The proposed privatisation, which would be carried via a selective capital reduction and repayment exercise, is mooted as DRB-Hicom is facing difficulty in addressing the shortfall in the public shareholder spread requirement of 25%. DRB-Hicom would use its unit Hicom Holdings Bhd for the proposed exercise which may be financed via internal funds and bank borrowings of Edaran. With the privatisation, DRB-Hicom would be able to fully consolidate the earnings of Edaran going forward. (Malaysian Reserve)
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Gadang Holdings Bhd has proposed to acquire a leasehold parcel of residential land off the Sungai Besi highway in Sungai Besi here for RM33m or RM62 per sq ft. Gadang said yesterday its sub-subsidiary Natural Domain Sdn Bhd had inked a sale and purchase agreement (SPA) with the vendor, GSS Properties Sdn Bhd, to acquire the land measuring about 49,377.47 sq metres (531,494.15 sq ft). It proposed to undertake a residential development there in the future. (Financial Daily)