UMW, IOI, AFG,GADANG and other business news

UMW Toyota Motor Sdn Bhd, a unit of UMW Holdings Bhd (UMWH MK, Hold, TP: RM5.59)expects to account for 15% to 16% of the automotive total industry volume (TIV) this year, driven by new car launches and its network expansion programme. UMW Toyota president Kuah Kock Heng said this year’s TIV was expected to be about 540,000 units. “We are sure to achieve this target as we plan more car launches and also through the smooth ride of our network expansion programme in various locations,” he said. Newly appointed Lexus Malaysia director Harry Loo Chee Yan said the company
aimed to sell 400 Lexus vehicles this year, including 20 units of the newly launched facelift model – the LS460L and the new LS460 sport- versus 300 units last year. Loo said the RM2m Lexus 3S centre in Penang that started operations this month
would help the company reach out to more potential customers, along with providing better services to its existing users. “We plan to open another 3S centre in Johor by year-end,” he said. Lexus has a 3S centre in Mutiara Damansara. (Financial Daily)
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The proposal join venture (JV) between plantation giant IOI Corp Bhd (IOI MK, Hold, TP: RM5.21) and Pelita HoldingsSdn Bhd will not go ahead as planned, IOI announced yesterday. The JV, which was announced in August 2008, would have seen IOI Corp and Pelita Holdings form a new company, IOI Pelita Kanowit Sdn Bhd, to develop about 7,000ha of land in Sibu, Sarawak into oil palm estates. IOI Corp said the JV agreement was terminated by mutual consent, and IOI’s share in IOI Pelita would be sold to Pelita Holdings. The company did not provide a reason forthe termination of the JV. (Financial Daily)
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Alliance Bank Malaysia Bhd chief executive officer (CEO) Datuk Brigdet Lai, who is currently on extended leave as the bank’s board carries out an internal probe, says her immediate priority is to defend her reputation. In a meeting with selected media last night, Lai stressed that she was still the bank’s CEO. “Last week, my immediate priority is to defend the company. But this week, it is to defend my integrity” she said. Chairman Datuk Thomas Lee, in the board’s first briefing to the reporters since the news of the probe become public, said the investigation was related to the renovation of property and that it could take about two to three weeks to complete. Lai confirmed that she had a letter from the Board on Monday and that the
questions were related to branch renovation. Both Lai and the bank’s Board stressed that the probe would not affect the bank’s operation or profit. (BT)
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Citigroup Inc has become the latest to obtain approval from the Securities Commission (SC) to establish stockbroking operations in the country. Citibank Bhd CEO Sanjeev Nanavati said that the news underlined Citi’s continued investment in
Asia and its desire to play an expanded role in the Malaysian capital markets. Citigroup will complement existing broking firms in enhancing the intermediation services industry in Malaysia. The group is also expected to play a crucial role in attracting more funds from the Middle East to Malaysia, given the company’s strong presence in the Middle East. (Financial Daily)
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Gadang Engineering (Malaysia) Sdn Bhd and its joint-venture (JV) partner Bukit Jerneh Quarry Sdn Bhd have received a letter of acceptance for a contract worth RM291.18m from Malaysia Airports Holdings Bhd (MAHB). The contract pertains to a works package under the proposed development of the new low-cost carrier terminal and related works at the Kuala Lumpur International Airport (KLIA), Gadang Engineering’s parent company Gadang Holdings Bhd said yesterday. “The scope of works under the contract comprises site preparation, earthworks and main drainage for Runway 3 and its associated taxiways which are expected to be completed on Dec 18, 2010,” it said. The contract was awarded to the Gadang-Bukit Jerneh Quarry JV in the proportion of 70:30 respectively. (Financial Daily)
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Tan Sri Hassan Marican is likely to stay on as CEO of Petroliam Nasional Bhd for another year when his contract expires next month, the Malaysian Insider reported yesterday without identifying its source. An announcement on the extension is expected soon from the Government. The Government’s reason for renewing Hassan’s contract was because “he is the best man for the job”, the online newspaper was quoted. (Malaysian Reserve)
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