EONCAP, SIME, MAS, DAYANG, AIR ASIA

The Prime Minister has met with the 3 candidates to succeed Tan Sri Mohd Hassan Marican, and a decision on the post of president and CEO at Petroliam Nasional Bhd (Petronas) will be made in the next few weeks. There is a good likelihood that an internal candidate may be picked among the three names that are being talked about – Datuk Shamsul Azhar Abbas (former MISC Bhd MD), Datuk Anuar Ahmad (Petronas Dagangan Bhd chairman) and Datuk Wan Zulkiflee Wan Ariffin (former MD/CEO of Petronas Gas Bhd (PTG MK, Buy, TP: RM10.90) from 2003-2007). Both Anuar, currently vice-president of human resources management, and Wan Zulkiflee, currently vice-president of the gas business are board members of Petronas.(Starbiz)

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EON Capital Bhd (EONCap), while evaluating Hong Leong Bank Bhd’s (HLBB) (HLBK MK, Hold, TP: RM8.71) RM4.92bn takeover proposal, deems the offer price as “significantly” undervaluing the targeted banking group. EONCap chairman Tan Sri Syed Anwar Jamalullail said it had “sought clarification” from HLBB yesterday on a range of details in its acquisition proposal, with a particular focus on valuation. Last Thursday HLBB made an RM4.9bn cash offer to acquire all of EONCap’s assets and liabilities, which include its core operations in EON Bank Bhd, translating into RM7.10 per share. EONCap has seven days to confirm that it is agreeable to table the offer for consideration and approval by its shareholders at a general meeting and take steps to issue and despatch within five weeks from the offer date the notice of general meeting and the shareholders’ circular. (Financial Daily)
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Sime Darby Property Bhd (SDPB), the property arm of Sime Darby Bhd (SIME MK, Hold, TP: RM8.10), will form joint ventures with both local and foreign property developers to help develop its 14,800ha of landbank in the country. "One of the strategies we have adopted is to accelerate the development of our landbank through joint ventures. We are now talking
to a few parties," SDPB managing director Datuk Tunku Badlishah Tunku Annuar said. He declined to name the potential parties. According to sources, SDPB has chosen Sunrise Bhd and IOI Properties Bhd as its joint venture partners to begin with. Tunku Badlishah also said SDPB will launch RM2bn worth of properties this year, amid prospects of an economic recovery
gaining strength. It will launch properties ranging from affordable to high-end homes and landed to high-rise within its 10 existing townships in the Klang Valley. (BT)
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Malaysian Airline System Bhd (MAS MK, Sell, TP: RM2.21) has completed its fund-raising plan for this year and 2011 following a proposed one-for-one rights issue to raise RM2.67bn. Shareholders had voted in favour for the proposed rights issue meant to fund future fleet expansion, finance its fleet renewal program and as working capital. “Based on our projections,
we do not need any more rights issue this year and for next year,” MAS’s managing director/CEO Tengku Datuk Azmil Zahruddin Raja Abdul Aziz said. The right shares are priced at RM1.60 each, or at about 32.1% discount to the theoretical exrights price of RM2.36 based on a five day volume weighted average market price up to Dec 21, 2009. “However, should the
opportunity for consolidation such as merger and acquisition presented itself, MAS may return to the capital market again to raise fund, Tengku Azmil said. (Malaysian Reserve)
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Dayang Enterprise Holdings Bhd (DEHB, Buy, TP: RM2.20) subsidiary Dayang Enterprise Sdn Bhd secured an RM8.5m job from Petronas Carigali Sdn Bhd. The job was for the provision of hook-up and commissioning of Petronas Carigali’s facilities at the Tangga Barat cluster development project phase 1. (Financial Daily)
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AirAsia Bhd (AirAsia) (AIRA MK, Buy, TP: RM1.67) hopes to increase the contribution of food and beverage (F&B) to its ancillary income by 20% to RM48m this year from RM38m in 2009, said its chairman Datuk Aziz Bakar. Under the partnership, F&N’s 100PLUS and Coca-Cola would be sold on all AirAsia and AirAsia X flights departing Malaysia for one year from Feb 1, 2010 with an option for extension. Aziz said that AirAsia hopes to reach sales volume of 48,000 cans per month and the drinks would be priced at RM5 a can. (Financial Daily)