LOCAL BUSINESS NEWS 27.1.2010

Hong Leong Bank Bhd (HLBK MK, Hold, TP: RM8.71) (HLBB) is said to be sticking to its offer price of RM4.92bn or RM7.10 per share for EON Capital Bhd (EONCap) despite the target company’s board stating that the price is too low. It is learnt that HLBB would not revise its offer price and was prepared for the offer to lapse, which falls due tomorrow. The Minority Shareholder Watchdog Group (MSWG) describes HLBB’s offer as not a fair price and has called on shareholders of EONCap to reject the offer. MSWG CEO Rita Benoy Bushon said based on MSWG’s estimates, a fair price for EONCap shares would be between 1.6 and 1.7 times book value, translating to about RM8 per share based on the latest quarterly results. In addition, it is believed that property group Mulpha International Bhd has written to Bank Negara to seek the green light to start talks to acquire a stake in the bank. However, under the Banking and Financial Institutions Act 1989 (Bafia), the single shareholder limit for financial institutions is 20%, which would amount to some RM984m at RM71.0 per share. (Financial Daily & Starbiz)

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Puncak Niaga Holdings Bhd’s (PNH MK, Hold, TP: RM3.66) 80% owned subsidiary Sino Water Pte Ltd has pumped in an additional RM1.71m into its China-based Xinnuo Water (Binzhou) Co Ltd unit. Puncak said as of Jan 20, 2010, the paid up registered capital of Xinnuo Water stood at about US$1.5m. (Malaysian Reserve)
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AirAsia Bhd (AIRA MK, Buy, TP: RM1.67) is targeting 2m passengers in the first year on its newly launched Indian routes. “We are known for very aggressive marketing and we will use a lot of means to promote AirAsia. 2m passengers cannot be got without a lot of hard work. That is a huge number and a huge target in this economic environment. It can’t come without a lot of investment,” said CEO Datuk Seri Tony Fernandes said, adding that it would cost the group RM5m to RM6m in the initial period. (Financial Daily)
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While Petra Perdana Bhd (PETR MK, Sell, TP: RM1.21) chairman and CEO Tengku Datuk Ibrahim Petra Tengku Indra Petra claims that the disposal of the 5.38% stake in Petra Energy Bhd (PEB) did not require shareholders’ approval, suspended executive director Shamsul Saad is disputing this. Shamsul disputed that the disposal of the 10.5m shares was based on the shareholder mandate, while the board of director claimed otherwise. On Sept 10, 2009, Petra Perdana placed 10.5m shares, representing 5.38% stake in its then subsidiary PEB at RM1.53 oer share to TA First Credit Sdn Bhd and as a result of this disposal, Petra Perdana suffered a loss of RM0.5m. He stressed that there were no mention of getting shareholders’ approval at any board meeting nor was there any board approval prior to the sale of the 5.38% stake. Shamsul said that at an EGM on Nov 9, 2009, Petra Perdana independent non-executive director Lawrence Wong had confirmed that the PEB stake sale was a negotiated sale and arranged by one of the leading broking firms. Shamsul said the controversial 25.03% PEB stake disposal by Petra Perdana on Dec 11, 2009 was brokered by TA Securities Holdings Bhd. TA Securities was appointed by Ibrahim at an “unusually high 3% placement fees”. Coincidentally, TA Securities was also appointed by Ibrahim as valuation agent for the transaction. (StarBiz)
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Parkson Holdings Bhd wholly-owned subsidiary Parkson Vietnam Co Ltd has increased its shareholding in Parkson Hanoi Co Ltd to 70% from 49%, by contributing RM3.4m as charter capital of Parkson Hanoi. Parkson said Parkson Hanoi is now effectively a subsidiary of Parkson Vietnam. Parkson Hanoi has a total investment capital of RM20.4m and a charter capital of RM16.3m which has been fully paid. (Malaysian Reserve)
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Global Industries Ltd announced that its majority Malaysian owned affiliate Global Offshore Malaysia Sdn Bhd has been awarded a contract for transportation and installation of offshore facilities for projects in Malaysia. The contract, under which the actual scope of work will be defined annually, is initially estimated at around US$70m (RM240.1m) for the first
year, and has options for two 1-year extensions upon the expiry of the contract. John Clerico, Global’s chairman CEO said: “This is the first contract we have been awarded in conjunction with our Malaysian partners, Kencana HL Sdn Bhd and we are very pleased that Petronas has showns such confidence in the Global-Kencana partnership’s ability to carry out the significant
scope of work involved with this project.” (Financial Daily)
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