CIMB, PETGAS,HONG LEONG,HONG LEONG,MAYBAN ,IOI,MAS

CIMB Bank Bhd, a subsidiary of CIMB Group Holdings (CIMB MK, BUY, TP: RM15.00), is in talks to sell down its stakein Southeast Asia Special Asset Management Bhd (Seasam) that manages its legacy non-performing loans (NPLs).CIMB said it would consider a cross-listing in Indonesia if rules permitted. “Logically, we would like to deconsolidate Seasam.(Selling) more than 51% would be nice,” CIMB Group chief executive Datuk Seri Nazir Razak told the media. A wholly ownedunit of CIMB, Seasam is a special purpose company that holds gross loans amounting to RM8.4bn and has a net book value ofRM928m. CIMB added that while the portfolio had been written down to RM928m, the total value of the collateral wasestimated to be RM2.1bn. Nazir feels Seasam would make a profit over time. (StarBiz)

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Tenders called for Kimanis plant. Tenders for the purported RM900m Kimanis power plant from the consortium of PetronasGas Sdn Bhd (PetGas) (PTG MK, Buy, TP: RM10.90) and Yayasan Sabah are in the process of being given out to the shortlisted 12 companies, say sources. Pre-qualification for the project, which started in April, was only completed at the beginningof December and local parties in the running include Muhibbah Engineering (M) Bhd (MUHI MK, Sell, TP: RM0.74) and GadangHoldings Bhd. However, it’s unknown who the companies are partnering in this venture or whether they are spearheading aconsortium of their own. The usual practice is for local companies to joint venture with established multinationals forinfrastructure projects of this nature. The source says the shortlist includes Japanese firms Sumitomo, Marubeni, and Mitsuigroup. The final cost of the 300MW gas plant is yet to be finalised although Yayasan Sabah says the plant is expected to becompleted in 2013. Under the agreement, Kimanis Power Sdn Bhd was established to implement the project with PetGasholding 60% and Yayasan Sabah holding the rest. The power will be sold to Sabah Electricity Sdn Bhd, which is under theumbrella of Tenaga Nasional Bhd (TNB MK, Buy, TP: RM9.90). (The Edge)

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Hong Leong Bank Bhd (HLB) (HLBK MK, Hold, TP: RM8.71) may acquire assets and liabilities, including equityinterests, in EON Capital Bhd. The banking group had received Bank Negara’s approval to commence negotiations withcertain shareholders of EON Cap. HLB did not disclose specifically which shareholders it would approach to start thenegotiation, saying it would make further announcements. Primus Pacific Partners Ltd, RH Development Corp Sdn Bhd,Kualapura (M) Sdn Bhd, the Employees Provident Fund and Khazanah Nasional Bhd are among the substantial shareholdersof EON Cap. (StarBiz)

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Two shareholders of EON Capital Bhd, who hold a combined 32.57% stake, have dismissed speculation that they arewilling to sell their stakes in EON Capital at RM8.20 per share to Hong Leong Bank Bhd (HLBK MK, Hold, TP: RM8.71).Rin Kei Mei, who owns a 15.46% stake, and the Tiong family (17.11%) said in a joint statement last Saturday that they wouldnot be selling their stakes to Hong Leong Bank. (Financial Daily)

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Malayan Banking Bhd (Maybank) (MAY MK, BUY, TP: RM8.10) has completed the acquisition of 17.8m shares or 5% inVietnam’s An Binh Commercial Joint Stock Bank for about 356.3bn dong (RM66.4m). Maybank Investment Bank Bhd saidon behalf of Maybank that the bank currently held 60.56m shares in An Binh following its latest acquisition. Earlier, thecountry’s largest lender spent RM430m to acquire a 15% stake in An Binh Bank. With a 20% stake, Maybank’s holdings in theVietnamese bank are at the maximum allowed for a foreign partner in Vietnam. (StarBiz)

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IOI Corp Bhd (IOI MK, HOLD, TP: RM5.21) will be focusing on new plantings on its Indonesian estates next year tohasten contributions from its foreign landbank. The group had added two new estates in Indonesia during the financial yearended June 30, 2009, bringing its total landbank to 172,980ha. According to its latest annual report, about 68% of the group’splantation holdings are in East Malaysia, 31% in Peninsular Malaysia and the remaining 1% in Indonesia. The report showsthat the group’s landbank in Indonesia measures about 2,110ha where most of its land is still undeveloped or are mostlyimmature oil palms. (Financial Daily)

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Malaysian Airline System Bhd (MAS) (MAS MK, SELL, TP: RM2.00) will increase capacity next year to prepare for anindustry upturn, after a 12%-13% reduction this year. “When we increased capacity by 10%, there was a 20% increase in(passenger) traffic,” managing director and CEO Tengku Datuk Azmil Zaharudin said. Azmil said the airline had seen stronggrowth in passenger traffic in the 3Q and 4Q of the year, a sign that recovery might be under way for the air transport industry.(Financial Daily)