IOI, AXIATA, BINA PURI, ALAM MARTIN, UNISEM

IOI Corp: IOI refutes NGO’s claim on unsustainable plantation
IOI Corp Bhd (IOI MK, Hold, TP: RM5.21) has rebutted the allegations of unsustainable plantation activities in West Kalimantan, Indonesia, by Western non-governmental organisation Milieudefensi. Milieudefensie, the Dutch branch of the international organisation Friends of the Earth, in a Mar 15 report, made several allegations including instances of potential land conflict, unauthorised plantation development on forest land, encroachment on peat land and open burning. IOI said a thorough investigation into all the allegations established that Milieudefensie’s field research had been highly selective and limited. “A clear action list and timeline has been set by IOI to address the remaining points raised by Milieudefensie,” IOI added. (StarBiz)

Axiata: Indonesia’s XL share sale nets US$554m
Malaysian telecoms firm Axiata (AXIATA MK, Hold, TP: RM4.15) has raised 5.1trn rupiah (US$554m or RM1.8bn) from the sale of shares in its Indonesian unit XL Axiata, XL’s president director said. Axiata is reducing its stake in XL Axiata, Indonesia’s No.3 mobile phone provider, to 68.5% through the share offering from currently 86.5%, in order to increase the free float and improve liquidity. The 1.53bn shares in XL Axiata were priced at 3,300 rupiah a piece, at the top end of the indicated range, and the share offering was 3 to 4 times oversubscribed, XL Axiata president director Hasnul Suhaimi said. (Financial Daily)

Bina Puri: RM1.1bn LCCT job almost in the bag
Bina Puri Holdings Bhd, together with its joint-venture partner UEM Group Bhd, is close to securing the third package of Malaysia Airport Holdings Bhd’s (MAHB) new low-cost carrier terminal (LCCT) worth some RM1.1bn, sources say. The JV is expected to receive the letter of award soon. The new project would be a boost to Bina Puri’s future earnings and order
book which currently stands at RM2.3bn, stretching over the next three years. (The Edge)

Alam Maritim: Bags charter contracts worth RM83.2m
Alam Maritim Resources Bhd said its unit Alam Maritim (M) Sdn Bhd has landed two charter contracts totalling RM83.16m from unidentified established oil majors to provide an accommodation vessel and an accommodation work barge. The three year charter for the accommodation vessel had a contract sum of about RM39.96m after which there is a two year
option to extend the charter on a yearly basis. The charter contract for the accommodation work barge had a contract sum of about RM43.2m, with a primary period of 13 months with options to extend for two more years. (Malaysian Reserve)

Unisem: US$60-70m for capex
Semiconductor manufacturer Unisem (M) Bhd is allocating between US$60-70m (RM198.6-231.7m) as capital expenditure (capex) for its current fiscal year to expand capacity and capitalise on rising demand for electrical and electronic (E&E) components ad products. Unisem chairman and managing director Jon Chia Sin Tet said about 75% of the capex would
go to expanding production capacity at its manufacturing site in Chengdu, China by building more factories. The remaining 25% will be used to augment the assembly and test capacity at its factories in Ipoh, Malaysia and Batam, Indonesia. “We will embark for organic growth in 2010 to 2012” Chia said. Unisem has no immediate fund-raising plans, Chia added.
(Financial Daily)

Bumi Armada: Talk of listing
Talk of an initial public offering (IPO) of T Ananda Krishnan’s oil and gas support services company, Bumi Armada Bhd, has surfaced again, after years of speculation. Parties familiar with the situation said some investment banks, both local and foreign, have been pitching for the advisory, placement and underwriting work for Bumi Armada’s IPO. Leading the pack, they said, is CIMB Investment Bank. However, other industry sources have not ruled out a sale of part of the company to private equity players, instead of the IPO route. (StarBiz)

Alliance: Shortlists 8 for CEO post
Alliance Bank Malaysia Bhd is considering a candidate from among eight individuals to replace Datuk Bridget Lai as its chief executive officer (CEO), sources said. The bank hopes to send the name of the chosen candidate to Bank Negara Malaysia for approval before the end of next month. Out of the eight candidates, three are Malaysian, three Singaporean and the rest foreigners from other countries. Alliance Bank is also on the lookout for senior management as it looks to partially reorganise the bank's management structure. (BT)