KLSE COMPANIES NEWS

DiGi Telecommunications Sdn Bhd, unit of DiGi.com Bhd (DIGI MK, Hold, TP: RM20.10), which currently has about 27% share of the youth cellular market, expects its new service – Digi Music Unlimited – to boost that market share to 33%. DiGi said that with 50% of the Malaysian population in the youth bracket, it is an important and growing market for the company. For RM5 a month, DiGi subscribers will be able to download unlimited songs to their mobile phones from half a million tracks. Those who sign up before November will enjoy free access for the first 30 days. (Starbiz)

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Mah Sing Group Bhd’s purchase of 46.1ha freehold land in Cyberjaya for RM130.5m cash will spearhead its expansion into the southern growth corridor. According to Mah Sing’s MD, the land will be developed into a medium to high-end gated and guarded residential – Garden Residence – comprising super link homes, semi-detached homes and bungalows, with an estimated GDV of RM690m. The company said that they intended to fund the acquisition and development cost of the land through internally generated funds and/or bank borrowings. To be launched early next year, Garden Residence will take three years to complete. It is also expected to contribute to FY10 earnings. (Starbiz)
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Mah Sing Group Bhd subsidiary, Jastamax Sdn Bhd, has proposed an en bloc sale of an eight storey retail and office space with two basement levels of car park within its Southgate commercial centre for RM226m cash to Koperasi Permodalan Felda Bhd (KPF). Mah Sing said that it was extending its 5/95 marketing programme to KPF. Under the programme, 5% of the total price will be paid upon the execution of the SPA and the balance 95% will be released to Jastamax based upon the architect’s certification of each stage of completion. The right storey building is to be leased back for a period of 2 years to Jastamax from KPF. (Starbiz)
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Dunham-Bush Holding Bhd (DB), which was taken private in 2007, is expected to be relisted ithe next three years, which would see the air conditioner manufacturer raising between US$300m and US$400m (RM1.06bn and RM1.4bn). Its chief executive officer, Jeffrey Scott Albright, said the proposed stock exchange for the relisting would be decided later as it would also hinge on the potential investor base. Holding company Agromash Holdings BV wanted to relist the company in 2012 and the funds raised from the flotation would be used to expand its facilities and equipment. (Financial Daily)
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Bolton Bhd is considering issuing bond to raise up to RM300m to finance land acquisition and the development of existing projects. “We intend to raise a standby line or a bond issuance. We are seriously considering a bond issuance at this time, RM250m or RM300m with a staggered drawdown,” executive chairman Datuk Azman Yahya said. According to him, Boston has begun evaluating the options available for such an exercise, saying it is also “subject to rating, subject to pricing, subject to markets”. He emphasised that the company’s bond issuance would not be for refinancing or debt repayment purposes and said the company was scouting for landbank in the Klang Valley and possibly in Penang, where it has existing developments. (Financial Daily)

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MK Land Holdings Bhd is targeting some RM600m worth of property sales in the current year ending June 30, 2010 as the recovering economic landscape will boost the real estate market’s fortunes in the coming months. Executive chairman Tan Sri Mustapha Kamal Abu Bakar said the sales target was in anticipation of demand for the company’s offerings of its properties in Damansara Perdana. The properties are expected to have a combined worth of some RM3.5bn in over 240ha piece of land. “We are hoping, and in the near future, we are talking about RM1bn (worth of sales),” said Mustapha.
(Financial Daily)
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The US$7bn Transpeninsular Pipeline (TPP) project that was to take off nearly two years ago may yet become a reality
as a Chinese party is said to be keen to take a stake in the project, with a shareholding agreement expected to be signed
as early as tomorrow. Sources said that the TPP project might get an up to RM4bn boost from the Chinese party to jumpstart
the project. The TPP involves building a 312km pipeline linking Yan in Kedah to Bachok in Kelantan. The project also involves
a crude oil refinery plant in Yan and three storage tanks in Kelantan hence allowing oil shipments from the Middle East to
bypass the Straits of Malacca. (Starbiz)