YTL,MAS,YNH, HOCK SENG LEE

YTL Corp Bhd (YTL MK, Buy, TP: RM8.00) has proposed to use 81.5% or RM1.108bn of a proposed RM1.36bn bond issuance to refinance its 2007/2012 exchangeable bonds. In a recent circular to shareholders, it said although the exchangeable bonds had a final maturity date of May 15, 2012, there was a put option to redeem the bonds on May 15, 2010. “The redemption would amount to 108.7% of the principal amount totalling RM1.108b,” it said. YTL said of the proposed RM1.36bn exchangeable bonds to be raised, RM1.108bn would be used to refinance the 2007/2012 exchangeable bonds, RM230.26m would be used to finance future investments or projects of the group and/or repayments of borrowings taken for such investments, and the remaining RM21m would be utilised within six months from the issue date of the bonds for expenses for the exercise. An EGM would be held on Feb 5 to seek shareholders’ approval to issue the bonds. (Financial Daily)
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Malaysia Airlines' (MAS MK, Sell, TP: RM2.21) maintenance unit and its Indian partner have signed an initial deal to provide heavy maintenance services to Jet Airways over the next 10 years. The deal, which can be extended for another 5 years, was the first major deal for the partnership in India, a market where airline fleets are expected to triple in the next 10
years. MAS-GMR Aerospace Engineering Co Ltd (MAG), a 50:50 joint venture between MAS Aerospace Engineering (MAE) and GMR Hyderabad International Airport Ltd (GHIAL), signed the Memorandum of Understanding (MOU) with Jet Airways.The MAG facility in Hyderabad will be built on the eastern side of the Rajiv Gandhi International Airport with the capacity to
service an estimated 60-80 aircraft per year upon completion of Phase 1 in 2011. It will provide base maintenance services starting with C and D checks for narrow bodied aircraft like Airbus A320 and Boeing 737 and subsequently wide-body aircraft like A330 and B777. (BT)
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YNH Property Bhd (YNHB MK, Hold, TP: RM1.72) unit Kar Sin Bhd (KSB) has been served with a writ of summons and statement of claim by the Inland Revenue Board (IRB) for back taxes for the years of assessment 1998 and 1999, amounting to RM1.059m and RM3.336m respectively. YNH said IRB was further seeking penalties amounting to RM150,164and RM517,112 for late payment of the abovesaid taxes. “KSB will be entering its appearance vide its solicitors to contest the abovesaid claims,” it said. (Starbiz)
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PLUS Expressways Bhd is proposing to acquire a majority stake in an Indian company, Indu Navayuga Infra Project Pvt Ltd, which has a concession to widen and maintain an existing highway in Tamil Nadu. PLUS told Bursa Malaysia the acquisition involved up to a 74% stake in Indu Navayuga Infra. PLUS said the shareholders of Indu Navayuga would hand over a 49% stake of the company on the “commercial operation date” for RM57.3m. It added that on the third anniversary of the commercial operation date of the highway, the existing shareholders would transfer another 25% stake for a purchaseconsideration of RM16.7m. (Starbiz)
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Hock Seng Lee Bhd has been awarded a contract worth RM35.79m by the state Public Works Department for the construction of package B of the Lubok Antu/Lemanak/Engkari road in Sri Aman division. The company said in a filing with Bursa Malaysia that the scope of works included earthworks, drainage, flexible pavement and bridges and would be completed by February 2011. (Starbiz)
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Tanjung Offshore Bhd is bidding for up to RM1.5bn worth of projects as it pursues an organic growth strategy towards sustaining earnings over the longer term. The oil and gas support services provider, which is anticipating its maiden overseas income in the current fiscal year, was also planning to raise funds to refinance existing loans and facilitate business expansion plans, its managing director Omar Khalid said. On fund raising initiatives, Omar said Tanjung Offshore was considering bank loans and private placement of new shares. Foreign income will be supported by global sales of Tanjung Offshore’s gas generators and waste heat recovery units, which are manufactured in Indonesia and the UK respectively. According to Omar, Tanjung Offshore is also eyeing new businesses in the Middle East, India, Vietnam and Thailand.
(Financial Daily)