GENTING, YTL CEMENT, AXIATA---all the HOLD call, or it should be SELL?

Genting Bhd’s (GENT MK, Hold, TP: RM7.50) proposed construction of a theme park and hotel in Johor is part of thegroup’s broader development plans in Iskandar Malaysia. Genting head of strategic investments Datuk Justin Leong said: “The development plan will be subject to a detailed market feasibility study and is contingent to the successful development of the Johor Premium Outlets, the retail shopping project that Genting Group is developing with US-based Simon Property Group Inc.” He added that the building of a theme park and hotel in Johor is part of a broader development plan that the Genting Group has for its operations in Iskandar Malaysia. The company is exploring the project through its plantation unit, Genting Plantations Bhd (GENP MK, Hold, TP: RM6.70), which is already working on a joint venture project to
develop a high-end shopping complex in Johor. (Financial Daily)
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YTL Cement Bhd (YTLC MK, Hold, TP: RM4.50)’s unit YTL Cement Singapore Pte Ltd has made an offer to purchase Holcim Investments (Singapore) Pte Ltd’s entire 55.87% equity stake in Jurong Cement Ltd (JCL) for S$61.9m (RM148.98m) or S$2.50 per share. The offer price is 40 cents or 19% higher per share than the price Holcim has offered in December last year to acquire YTL Cement Singapore’s stake in JCL. YTL Cement’s offer comes on the heels of
Holcim’s rejection of its earlier S$50m bid to purchase only a cement plant and terminal at Pulau Damar Laut from JCL’s unit Jurong Cement Bulk Terminal Ptd Ltd (JCBT) last Monday. The board of Holcim rejected YTL Cement’s earlier offer on the basis that it would “emasculate the remaining business of the company”, according to a report. A fight between YTL Cement and Holcim has been on the radar since Holcim offered to buy shares it did not own in Jurong Cement for S$2.10 per share in December last year. However, YTL Cement was of the view that Hocim’s offer was not attractive. Instead of accepting, the group indeed later responded with a proposal to buy over some assets, namely a cement plant and terminal in JCL on Jan 11. (Financial
Daily)
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Axiata Group Bhd (AXIATA MK, Hold, TP: RM3.13) may sell Islamic bonds to refinance about RM4bn of borrowings, its CFO said yesterday. Datuk Yusof Annuar Yaacob said the company was looking to secure better rates and longer tenure through refinancing. “We are looking to refinance some of our bank borrowings into Islamic but we haven’t finalised the structure nor have we gone to the market to raise the money yet,” Yusof said. “The facility we have is in place until 2012. We believe that rates are very low and we want to take the opportunity to lock in some of those low rates.” (Financial Daily)