FBMKLCI 1572.21 DJ-22.55 CRUDE OIL 89.47 RM 3.04

Hap Seng plans to raise up to RM1.46 billion from a corporate exercise which includes RM808.21 million from a private placement and another RM654.54 million from a rights issue. The move would also build its war chest to undertake acquisitions. It had proposed to place out up to 124.53 million new shares at an issue price of RM6.49 per placement share which would raise RM808.21 million. It would also undertake a renounceable rights issue of up to 448.31 million new shares together with up to 448.31 million new free detachable warrants to raise RM654.54 million.

The locations of the 35 stations of the first mass rapid transit (MRT) line from Sg Buloh to Kajang are expected to be finalised between April and May, says Land Public Transport Commission (SPAD) CEO, Mohd Nur Ismal Kamal. The line, with about 9.5km underground, will run through Sg Buloh, Kota Damansara, Kuala Lumpur, Cheras to Kajang. However, it was previously reported the alignment of the MRT may differ from what it was first proposed by MMC-Gamuda JV SB, the project delivery partner, as some highly busy hubs like Klang, Petaling Jaya and Shah Alam were not included in the initial MRT alignment.  

Guan Chong plans to raise up to RM120 million from the expected exercise price of RM2 for the 60 million free warrants. It had fixed the exercise price for the warrants at RM2, which was 9.29% or 17 sen over the theoretical ex-price after the proposed bonus issue of RM1.83 per share, based on the five-day volume weighted average price of RM2.44. Of the RM120 million, the proceeds would be used  for the day-to-day working capital requirements of the group.

KFC Holdings (Malaysia) Bhd (KFCH) plans to invest RM25 million to open 25 new outlets nationwide this year. Managing director Jamaludin Md Ali said out of the 15 of the KFC fast food restaurants will be drive-through outlets to provide more convenience to customers, he said. Currently, there were 520 KFC outlets including 40 drive-through outlets.

Johor Corp is considering selling various assets including some landbank, properties and plantation assets to partly repay its current RM3.6bn debt which is due for repayment in July next year. The state investment arm first plans to bring down the debt level of RM3.6bn to a “sustainable level” of between RM1bn and RM1.5bn following a debt restructuring exercise, its newly appointed president and chief executive Kamaruzzaman Abu Kassim said. That would mean that it needs to raise at least RM2.1bn by 2012. “About 70% (source of funding) for the RM2.1bn needed has already been identified and this includes selling some of our assets,” he said at a meeting with the media last Friday