EONCAP,GENTING,MAXIS,YTL, PETRA,NOTION

EON Capital Bhd (EON Cap) has left the door open to negotiate with other banks, besides Hong Leong Bank Bhd (HLBB) (HLBK MK, Hold, TP: RM8.71), for a potential acquisition or disposal of assets and liabilities or a merger and acquisition (M&A). EON Cap said the negotiations would be for the banking group, which wholly owns EON Bank Bhd, to either dispose its assets and liabilities to a third party or to acquire the assets and liabilities of the third party banking group. However, the industry players are unsure how the central bank would respond to EON Cap’s request, given that no other banking group, at least publicly, had expressed interest in EON Bank. EON Cap’s application to BNM for permissions to talk to other parties may indicate that its major shareholder Primus Pacific Partners Ltd is reluctant to clinch deal with HLBB, without a competing bid towards extracting better value for EON Bank, Primus is the single largest shareholder of EON Cap with a 20.2% stake. Even if HLBB was not Primus preferred buyer, HLBB has already secured permission to talk with Rin Kei Mei and Tan Sri Tiong Hiew King, who own a combined stake of 32.57% in EON Cap, through Kualapura Sdn Bhd, Lintang Emas Sdn Bhd and RH Development Sdn Bhd. (Financial Daily)
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Genting Bhd (GENT MK, Hold, TP: RM7.50) plans to build a theme park and hotel within the Iskandar region in Johor to complement the group’s Resort World Sentosa, said its chairman Tan Sri Lim Kok Thay. Lim said for a start, Genting would build a mall in the region in a joint venture with Simon Property Group, the largest mall operator in the US, with Genting’s
portion of the project cost estimated at RM200m. The group, under Genting Plantations Bhd (GENP MK, Hold, TP: RM6.70), had 10,000 acres in Kulai, Johor and this landbank would make it easier for the group to expand its Iskandar plan later. He noted that the response to the mall would determine the implementation of the theme park and hotel plan. By having a hotel in
Iskandar, it would give the visitors the choice of cheaper accommodation compared to hotels in Sentosa. Meanwhile, Lim said Genting was looking at various opportunities in the US that emerged in the aftermath of the global financial crisis. (Financial Daily)
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Maxis Bhd (MAXIS MK, Buy, TP: RM6.10) expects half its revenue to come from non-voice services by 2013. Non-voice services like text messages, ring tone and game downloads as well as internet surfing made up about 32% of Maxis’ total revenue as at end-September 2009. One of the main growth drivers will be its non-text messaging services such as mobile content downloads and surfing. The segment accounts for a third of the group’s non-voice revenue, from 12% five years ago. (BT)
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The government wants the developer responsible for developing areas in Sentul, to include low cost houses in their proposed mixed development project, said Federal Territories and Wellbeing Deputy Minister Datuk M Saravanan. He said Kuala Lumpur City Hall (DBKL) would discuss with the developer YTL Land & Developer Bhd, a unit of YTL Corp Bhd (YTL MK, Buy, TP: RM8.00) to build 2,400 low cost houses, in their proposed condominium and commercial development for the area. “The low cost houses are necessary for the low income group and squatters in the area to own a house in the area, once it is developed,” he said yesterday. Saravanan said to ensure low cost houses were build by the developer, DBKL would amend the
agreement on the development of the area to include the building of low cost houses. (Malaysian Reserve)
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Petra Perdana Bhd (PETR MK, Sell, TP: RM1.21) executive chairman and CEO Tengku Datuk Ibrahim Petra said the sale of Petra Energy shares and the sale of Petra vessels to Petra Energy were done in the interests of shareholders. In a statement he said that the board is clear in its objectives and is determined to meet its financial and cash flow commitments, as the company is expected to encounter a cash flow deficit of RM40m – RM70m for the next 12 months. It was reported that Petra executive director Shamsul Saad has submitted a complaint to the Securities Commission alleging breaches in procedures for the sales. Tengku Ibrahim said “We have no choice now but to look for alternative funding arrangements until the postponed hearing on March 3.” He added that he was aware that all proceeds from the divestment of Petra Energy shares are placed in an escrow account and that the loan was not due until 2012 and 2013. “But the urgent financial commitments and tight cash flow of the company were far more important and required immediate redemption of the loan”, he said. (BT)
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Petroliam Nasional Bhd (Petronas) has been invited by the Timor-Leste government to invest in its offshore gas development, Petronas president and CEO Tan Sri Mohd Hassan Merican said yesterday. Timor-Leste recently rejected a proposal by Australian-based Woodside Petroleum and partners to develop the offshore Greater Sunrise gas field. The rejection was based on the fact that Woodside would develop the gas field without building an onshore plant to liquefy the gas.Hassan was speaking to reporters at the signing ceremony between Petronas Lubricants International Bhd (PLI) and ProtonHoldings Bhd. The agreement between Proton and Petronas is for a supply, technical and commercial collaboration in the area of automotive lubricants and functional fluids. PLI’s chairman and Petronas’ vice-president for the oil business, Md Arif
Mahmood said the tie-up would also provide for a profit-sharing arrangement with Proton in the aftersales or service-fill market segment and greater cooperation in initiating joint marketing and promotions. (Financial Daily)
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Ho Hup Construction Co Bhd yesterday revealed that the reports by its investigative accountants showed various suspected offences of criminal breaches of trust, misappropriation of property and cheating had been committed against its group of companies. There also existed reasonable suspicion that various breaches of director’s duties had beencommitted. It said the Penal Code and Companies Act breaches concerned the nine projects and transactions including cashcheque payments totalling RM5m without proper supporting documents and payments via cash cheques amounting to RM2.4m for “Perlin Mandeera Project” in Sri Lanka that the company had no record of. Others included a RM14.5m development agreement with Syarikat Kemajuan Perumahan Negara Sdn Bhd without any board approval and the acceptance of road
projects in Madagascar for RM216.9m without proper feasibility study and board approval. The company had taken all necessary actions including filing of a suit against its former managing director, Datuk Low Tuck Choy for damages amounting to RM235.6m and legal costs. (Starbiz)
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Japan’s Nikon Corp Ltd has emerged as a substantial shareholder in Notion VTec Bhd after taking up 10% or 13.84m shares in the precision component maker in a private placement exercise. The shares were placed out for a total of RM33.78m or RM2.44 a share, the price set on Jan 6, 2010 at a 10% discount to the weighted average market price of RM2.7066 for the five preceding market days. Notion executive chairman Thoo Chow Fah said in a statement yesterday that Nikon’s equity investment in the company indicated the strong confidence placed in the group, and that it should not affect the group’s other camera businesses. In a separate statement, Nikon said the investment would help the camera maker increase its presence in the digital camera market through the utilisation of Notion’s technologies in the manufacture of its products and development of a framework to achieve a stable supply of highly competitive digital cameras. The proceeds of RM33.78m will be used mainly for the expansion of its facility in Thailand with an additional 200,000 sq ft of floor space. The new plant is expected to be operational in the first quarter this year. With the completion of the private placement, Notion’s total paid-up share capital now stands at 152.24m shares. (Financial Daily)
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The Kuala Lumpur High Court has fixed April 2 to rule on whether to make public the government’s water concession agreement with Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and the company’s audit report, as sought by the Malaysian Trades Union Congress (MTUC) and other parties. Judge Datuk Mohamed Appandi Ali, who sat at the high court’s appellate and special powers division, fixed the new date in chambers yesterday. According to MTUC’s counsel Matthew Thomas Phillips, the court had instructed the parties concerned to file written submissions before April 2. Phillips also said that MTUC had instructed him to seek clarification from the Selangor state government on whether it was objecting to the judicial review. Klang member of parliament Charles Santiago, who spearheads the Coalition Against Water Privatisation initiative, said the judicial review was sought to challenge the state and federal governments to release information to the people. MTUC and 13 others filed for judicial review on Jan 15, 2007 after the Energy, Water and Communications Ministry denied their request to view the water concession agreement between Syabas and the federal and state governments as well as Syabas’audit report. (Malaysian Reserve)