AMMB, KNM, UEMLAND

AmBank Group, a unit of AMMB Holdings Bhd (AMM MK, Buy, TP: RM5.24), plans to bolster its Islamic banking and financial services in the region as part of its expansion drive. "But we will expand on our own and will not buy any stakes in other banks or seek partners. Malaysia is already known as a leader in Islamic banking and we should continue to lead," Chairman Tan Sri Azman Hashim said. The bank has not decided which country it plans to venture into, but Indonesia, where it has a stockbroking business, could be a possible destination. (BT)
AmBank Bhd, a unit of AMMB Holdings Bhd (AMM MK, Buy, TP: RM5.24), sold RM1.42bn of bonds, less than planned, as it balances its assets and liabilities. It may sell a further RM1bn in private placements after meeting with investors later this month. “Demand was very strong but some investors’ expectations on pricing we thought were unrealistic, so we said we’re not interested,” chief financial officer Ashok Ramamurthy said. AmBank said in February it may sell as much as RM3bn of senior debt for the first time as it seeks to lower interest rate risk and boost its capital adequacy ratio. (Malaysian Reserve)
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KNM: Offer price may be reduced
KNM Group Bhd (KNMG MK, Hold, TP: RM0.90) has not extended BlueFire Capital Group Ltd’s (Bidco) exclusivity period for due diligence but still aims to conclude talks in four weeks, raising speculation that a revised lower offer price could be in the offing for the takeover. KNM said although it had not extended the period, which expired yesterday Mar 22, it had agreed to wrap up negotiations with the parties involved by Apr 16. “An announcement will be made on the outcome of such discussions when they are concluded,” KNM said in a filing to Bursa Malaysia. (Financial Daily)
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UEM Land Bhd has fixed the issue price of its rights issue at 80 sen per rights share, representing a 44.1% below its fiveday volume-weighted average market price up to Mar 19 of RM1.43. In a filing to Bursa Malaysia, UEM Land said the issue price was 34.4% below the theoretical ex-rights price of UEM Land shares of RM1.22. The rights issue will involve
the issuance of about 1.2bn rights shares and will raise RM971.3m. The rights shares were issued on the basis of one rights share for every two shares held as at 5pm on Apr 5. (StarBiz)