FBMKLCI 1556.42 DJ-279.65 CRUDE OIL100.13 RM2.9770

The potential merger of either Malayan Banking Bhd (Maybank) or CIMB Group Holdings Bhd with RHB Capital Bhd would bring the new enlarged entity not too far behind some of the largest banks in the region. The top regional banks in Asean include three Singapore banks DBS Group Holdings Ltd, Oversea-Chinese Banking Corp Ltd (OCBC) and United Overseas Bank Ltd (UOB) with market capitalisation of US$27.7bil, US$25.7bil and US$24.5bil respectively. While in terms of asset size, the Singapore banks remain at the top, a Maybank-RHB Cap merger could overtake DBS Group in terms of combined market capitalisation with US$28.8bil. The potential merger of CIMB-RHB, on the other hand, would see a combined market capitalisation of US$27.3bil, just marginally below DBS but would overtake both OCBC and UOB. In terms of asset size, DBS, OCBC and UOB stand at US$238bil, US$198.4bil and US$178.8bil respectively.

Following the dismissal of Primus (M) Sdn Bhd's petition against the sale of EON Capital Bhd (EON Cap) to Hong Leong Bank Bhd (HLB), Primus now has to pay RM1.9mil in court costs. High Court Judicial Commissioner Varghese George Varughese ordered Primus to pay the sum to the 13 respondents in its suit EON Cap and nine of its board members, and three entities controlled by two of those board members.

Sarawak Energy Bhd (SEB), which will have the rights to the Bakun dam's power at a rate of 6.25 sen per kwh, has a firm utilisation rate of 50% from its four customers. The electricity from the Bakun dam which is priced at 6.25 sen/kwh with an annual hike of 1.5% under a power purchase agreement (PPA) between Sarawak Hidro Sdn Bhd and Syarikat Sesco Bhd confirmed a StarBiz report yesterday. StarBiz quoted sources saying the rate represented the cheapest tariff in Asian history but would be escalating at 1.5% per annum for 30 years.

SapuraCrest Petroleum Bhd (SapCrest) has signed an agreement with Real Mild Sdn Bhd and Labuan Shipyard and Engineering Sdn Bhd (LSE) for the subscription of 25 million new shares in LSE. The shares, according to SapCrest in a filing with Bursa Malaysia yesterday represented a 50% stake of the enlarged share capital of LSE.

Oil and gas services provider Dialog Group Bhd has entered into a joint-venture agreement with Vopak Terminal Pengerang BV, a unit of the Royal Vopak group, for the development of an independent deepwater petroleum terminal at Pengerang, Johor worth RM5bil. The company told Bursa Malaysia yesterday that both parties had set up a joint-venture company - Pengerang Terminals Sdn Bhd - in which Dialog would hold a 51% stake and Royal Vopak the remainder.

Water concessionaire Puncak Niaga Holdings Bhd is expected to register a loss this financial year following the adoption of a new accounting treatment that requires certain charges to be capitalised as intangible assets and amortised. Managing director Datuk Hashim Mahfar said in a statement yesterday that the IC Interpretation 12-Service Concession Arrangements, which were retrospective, had also resulted in a drop in shareholders' funds from RM1.5bil to RM35.6mil. However, Puncak Niaga has obtained a conditional waiver from being categorised a PN17 company until the announcement of its second-quarter results for the period ending June 30, 2012. (Under Bursa Malaysia rules, that would have been the case if a company's shareholders' funds fell below RM40mil).

Benalec expects to realise a net gain of RM34.93 million from the completion of separate agreements its units have entered for the disposal of land and joint venture for a mixed property development. Benalec on June 1 said its subsidiaries Sentosacove Development Sdn Bhd and Orientalcove Realty Sdn Bhd had entered into a sale and purchase agreement and joint venture agreement with Vista Selesa Development Sdn Bhd, respectively.

CBIP is selling its entire equity interests in Sachiew PLANTATION []s Sdn Bhd and Empressa (M) Sdn Bhd for a total of RM268.06 million. Sachiew is principally involved in the cultivation of oil palm and production of crude palm oil and palm kernel, while Empressa engages in the cultivation of oil palm and the operation of a palm oil mill. CBIP said the gross proceeds of RM268.06 million from the disposal would be utilised for its working capital including for financing receivables, inventories, and repayment of bank borrowings.

Bina Puri’s 80%-indirect owned subsidiary PT Megapower Makmur has received two contracts from PT PLN (PERSERO) to operate power plants in Indonesia.

FBMKLCI 1509.10 DJ-17.90 CRUDE OIL 105.07 RM 3.0040

Oil prices pushed above US$105 per barrel Tuesday, as traders focused on a series of international crises that could tighten global supplies at a time when consumption is expected to increase. 

Benalec is standing out from its CONSTRUCTION [] peers and rapidly gaining investor attention. Now, the company is also shaping up to be a major landowner and developer, as it will receive some 177.3 acres of land in Melaka in exchange for reclamation works.

Ramunia plans to venture into the offshore oil and gas business in Malaysia and the region via a tie-up with Drydocks World of Dubai. It sealed an agreement for a floating production, storage and offloading (FPSO) deep producer vessel, known as the MT Laurita. The arrangement would enable Ramunia to venture into the field of engineering, procurement, construction, installation and commissioning. It plans to provide the full offshore production facilities and to penetrate into the growing offshore floating facilities business within the local and regional upstream oil and gas sector.

Berjaya Land posted net profit RM34.91 million for its third quarter ended Jan 31, 2011 compared to net loss RM8.57 million a year ago, due mainly to higher profit contribution from the gaming business operated under BERJAYA SPORTS TOTO BHD [] (BToto). Revenue declined to RM990.59 million from RM993.96 million. Earnings per share were 0.70 sen from loss per share of 0.17 sen, while net assets per share was RM1.04. For the nine months ended Jan 31, BLand’s net profit jumped to RM85.13 million from RM35.42 million, on the back of revenue RM2.99 billion.

Leader Universal’s joint venture to supply cable and cable related equipment in Saudi Arabia has been called off by mutual agreement with its JV partners -- Al-Ghazalah Development Co (Al-Ghazalah) and Suasana Daya Sdn Bhd. The parties had on July 8, 2009 entered into an agreement to set up the JV to sell and supply cables and cable related accessories and equipment with customers in Saudi Arabia, as well installation of cables and turnkey projects and supply and/or construction of power transmission, distribution, substation and related projects in that country.

CIMB Group Holdings Bhd has sought another six months until Oct 6 to complete the proposed dual listing on the Stock Exchange of Thailand. The application has been submitted to the Securities Commission and is pending its decision.

With the Sarawak state assembly dissolved on Monday,speculations on the upcoming 10th state election on April 9 will boost politically-and state-linked stocks, namely those in the timber, construction and oil and gas sectors. This time, the sentiment will be further underpinned by the Sarawak Corridor of Renewable Energy (SCORE) programmes.aption

FBMKLCI 1508.88 DJ+178.01 CRUDE OIL 103.12 RM 3.0135

Salcon Bhd’s wholly owned subsidiary, Salcon Changzhou (HK) Co Ltd, has entered into a concession agreement and an asset transfer agreement with Changzhou City Tian Ning District Diao Zhuang Street Office and Changzhou Southeast Industrial Wastewater Treatment Plant respectively to acquire, upgrade, operate and maintain the Southeast Industrial Wastewater Treatment Plant (SIWTP)

Civil engineering firm Benalec Holdings Bhd has been awarded a contract worth RM37mil by Glenmarie Cove Development Sdn Bhd to undertake earthworks and other associated work in Klang

Australia and New Zealand Banking Group Ltd (ANZ) may raise its equity interest to controlling stake in four of the Asian banks it has stakes in, including Malaysia's AMMB Holdings Bhd. However, AMMB chairman and major shareholder Tan Sri Azman Hashim said in Tuesday's newspaper report he has no plans to sell his stake. He owns 16.7% while ANZ owns 23.8%.

Harbour-Link’s unit Eastern Soldar Engineering & CONSTRUCTION [] Sdn Bhd has accepted a letter of intent from Chiyoda Sarawak Sdn Bhd for a RM29 million general civil work contract for the Tokuyama Malaysia Project. The contract comprised the general civil works Package SP 4C – general utility area at the Samalaju Industrial Park in Bintulu, Sarawak.

Berjaya Food Bhd, Lembaga Tabung Angkatan Tentera has ceased to be a substantial shareholder after it disposed of 7.97 million shares on March 14. LTAT was allotted 10 million shares or 7.07% when BFood was listed on Feb 14 as the Bumiputra allocation by MITI, according to the company filing.

ATLAN HOLDINGS BHD [] expects to gain RM16 million after the sale of two pieces of land along Jalan Batu Ferringhi, Penang for RM33 million cash to Glass Bay Sdn Bhd. It said the RM16.47 million was arrived at after deducting estimated income tax of RM5.49 million, land cost of RM9.19 million, development cost of RM1.84 million.

Perisai, Singapore’s Mercury Pacific Marine Pte Ltd sold one million shares on March 18 and reduced its stake to 158.26 million shares or 23.18%.

Public Investment Bank Berhad ceased to be substantial shareholder of DPS Resources Bhd after it disposed of 13.17 million shares on March 13.

FBMKLCI 1526.96 DJ+4.39 CRUDE OIL 85.29 RM 3.02

Taliworks Corp Bhd will seek a new partner for a RM374.7mil waste-water treatment project in Yinchuan City, China, after its original partner allegedly defaulted on its obligation. Taliworks said it had, on Tuesday, received a letter from the Yinchuan City Waste Water Treatment Co Committee indicating that both Taliworks and Beijing Puresino-Boda Environmental Engineering Co Ltd (BODA) had yet to formalise the joint-venture (JV) company, in which Taliworks would have a 70% stake, to undertake the project.

Integrax Bhd and its unit Pelabuhan Lumut Sdn Bhd (plaintiffs) have filed a legal suit against Integrax executive director Amin Halim Rasip, alleging that he had breached his fiduciary duties and demanding that he pay for damages arising from the alleged breach. The port operator told Bursa Malaysia yesterday it was also seeking an order that Amin be restrained and an injunction be granted, restraining him from acting or in any way whatsoever holding himself out as director and/or co-chief executive officer of the plaintiffs. The company is also seeking an order that Amin be restrained and an injunction be granted, restraining him from interfering in any way whatsoever in the management of Integrax and Pelabuhan Lumut.

oil and gas players after Petronas, for the first time ever, announced its decision to  develop marginal oilfields to boost Malaysia's oil production. The development of the initial four clusters will be via service contracts and not the normal production sharing contracts (PSCs). The Edge FinancialDaily reports interest in oil and gas stocks may spill over to the sector’s laggards which have yet to catch up with the rally in the broader industry and which observers say could somehow benefit when the flow of investments accelerates in the sector.

 

Benalec is acquiring two handysize bulkcarriers for US$6.8 million (RM20.75 million) to expand its fleet to transport sand for land reclamation activities. It said the acquisitions are to facilitate the expansion of Benalec group’s fleet of vessels, in particular vessels for transporting of sand for land reclamation activities.

Perisai has proposed to acquire a 51% stake in Intan Offshore Sdn Bhd for RM45.23 million via new shares. With the acquisition, Perisai Group will enhance its ability to compete in the vessel supply and chartering business while gaining access to new revenue streams around the region.