HLBK,AXIATA,AIR ASIA,PETRA

EON Capital Bhd’s board is believed to be meeting on Thursday to discuss the proposal from Hong Leong Bank Bhd(HLB) (HLBK MK, Hold, TP: RM8.71) to negotiate for the sale of stakes belonging to two major shareholders – Rin Kei Mei andTan Sri Tiong Hiew King. Sources said following that, the board would likely apply for permission from Bank Negara to talk to
HLB on an institutional level. The much-awaited proposal from HLB, which has proposed to purchase the stakes via an assets and liabilities route, can be submitted after EON Cap receives the go-ahead from Bank Negara for the talks. (Starbiz)
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Celcom Axiata Bhd (AXIATA MK, Hold TP: RM3.13) expects to double the number of foreign subscribers this year by launching a new prepaid pack that gives low rates for international calls. Senior VP for marketing Zalman Aefendy Zainal Abidin said there are almost 3m foreign workers in Malaysia and they spend double what locals do on phone calls. Zalman was launching a new prepaid pack, Celcom Sukses, which provides the lowest IDD call rate to 11 countries at 18 sen per minute. The countries are Indonesia, India, the Phillippines, Bangladesh, Nepal, Pakistan, Thailand, Myanmar, Vietnam, Cambodia and Sri Lanka. In contrast DiGi’s (DIGI MK, Hold, TP: RM20.00) lowest IDD rate on a prepaid pack to Indonesia is 60 sen per minute. (BT)
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AirAsia Bhd’s (AIRA MK, Buy, TP: RM1.67) non-equity alliance with Jetstar, the low-cost unit of Australia’s Qantas, will not involve an exclusive maintenance deal. AirAsia’s group CEO Datuk Seri Tony Fernandes said although the airlines were looking at joint procurement of maintenance services and supplies, AirAsia would not be obliged to send its planes only to Qantas’ facilities for engineering work. Fernandes said AirAsia would not be keen to ink an exclusive agreement to maintain its aircraft only at Qantas’ facilities and that the matter was still “in discussion”. He had said the alliance could save AirAsia and Jetstar some A$300m (RM936.75m) in costs, with the bulk of it coming from procurement of maintenance services and supplies. Under the alliance, the 2 low-cost carriers would cooperate in areas that include future fleet specification, airport
passenger and ground procurement of engineering and maintenance supplies and services. (Financial Daily)
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Petra Perdana Bhd’s (PETR MK, Sell, TP: RM1.21) Tengku Datuk Ibrahim Petra has suspended 11 senior management and key personnel until Feb 4. He said the suspension would allow the board to appoint external and independent consultants to review and investigate the group’s operations and management. It is also to avoid any leaks of confidential information that could further tarnish the image of the company and its business objectives. During the suspension period, independent consultants may be appointed to take charge of the relevant job functions to ensure continued operations of the company. Meanwhile the EGM on Feb 4 to remove four directors of the company by the shareholders will go on despite the 11 requisitioners receiving suspension letters. (BT)
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Cahya Mata Sarawak Bhd (CMS) has decided to sell its 37.21% stake in UBG Bhd to PetroSaudi International Ltd for RM465.53m. CMS in a statement to exchange last Friday, said it has accepted the RM2.50 a share offer tabled by PetroSaudi, an upstream hydrocarbon company based at Al-Khobar in Saudi Arabia. UBG’s other main shareholders is Abu Dhabi-Kuwait-
Malaysia Investment Corp which holds a 52.63% stake via Majestic Masterpiece Sdn Bhd. The RM2.50 a share offer is 87sen above UBG’s unaudited consolidated NTA per share of RM1.63 as at Sept 30, 2009 or price to book multiple of 1.53times. UBG shares closed the week at RM2.39 a piece. CMS said its rationale to dispose the UBG stake was premised on the fact that the associate level stake meant the company only stood to gain from dividend payments while the chances of capital appreciation were limited due to poor market conditions as well as UBG’s low share liquidity. CMS also said it would like to take advantage of the extensive business opportunities emerging especially in Sarawak; projects such as the Sarawak Corridor of
Renewable Energy and the proposed aluminium smelter in the steel cluster and iron ore hub near Bintulu. (Malaysian Reserve)
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The ongoing internal probe at Alliance Finance Group Bhd’s banking unit is not related to fraud and will not have a material impact on the bank’s earnings or balance sheet, a board member said. Analysts and fund managers were told by independent non-executive director Tee Kim Chan that rumours the probe may involve the police or Malaysian Anti-Corruption Commission are “not true”. He also denied that it had anything to do with a particular public-listed company or a multi-storey building. Tee declined to say what the probe was about except that it would take about two to three weeks to complete. He also did not say when CEO Datuk Bridget Lai would return from her annual leave. He also mentioned that business was as usual
and regulators were being kept informed of developments. (BT)