Sabah & Sarawak
Coastal Contracts’ potential M&A an unsurprising development
Coastal Contracts Bhd’s (Coastal) reported venture into potential mergers and acquisitions (M&As) is not an entirely surprising development to analysts. According to Kenanga Investment Bank Bhd, Coastal has been reported by media to be in preliminary talks with several parties to pursue inorganic growth through mergers and acquisitions.
Sarawak Cable to focus on higher margin jobs
Sarawak Cable Bhd (Sarawak Cable) is targeting jobs that offers better profit margin to the group. Following a company visit, AmResearch Sdn Bhd affirmed that Sarawak Cable intends to bid aggressively for jobs with better margins to improve its profitability. The company aims to secure RM300 million worth of power transmission jobs this year.
Platts introduces FOB Straits Process for refined oil oroducts price assessments
Platts, a leading global energy, petrochemicals and metals information provider and a premier source of benchmark price references, yesterday introduced the Free-On-Board Straits (FOB Straits) process in its price assessments for refined oil products. The FOB Straits process is an update to price discovery methodology that forms the basis of the Platts FOB Singapore benchmarks for fuel oil, gasoil, jet fuel and gasoline.
Bintulu Port issues LoA to Senari Machinery for Samalaju project
Bintulu Port Holdings Bhd’s unit, Samalaju Industrial Port Sdn Bhd, today issued a letter of acceptance (LoA) to Senari Machinery Sdn Bhd for the Samalaju port development project. The contract, valued at RM38.08 million, revolves around the works and commissioning of three units of level luffing crane (LL) complete with hopper and conveyor belt feeder to Samalaju Industrial Port Sdn Bhd.
Analysts positive on Pestech’s prospects in Cambodia
Analysts are positive on Pestech International Bhd (Pestech) due to its bright utility development prospects in Cambodia. Its strong relationship with its client Electricite du Cambodge (EdC) and supplier Shandong Power Equipment Co Ltd (SPECO) place Pestech in a strong position of securing new projects.
Shell remains confident in Malaysia
Shell on Thursday reaffirmed its confidence in Malaysia, noting that its businesses are not affected by developments at the Shell Refining Company (Federation of Malaya) Bhd (SRC). This was in response to news reports not accurately reflected Shell’s business operations in the country. To note, refining overcapacity and margins globally have led the board of SRC to evaluate the long term sustainability of this business.
Dayang enters into mandatory general offer for Perdana Petroleum
According to MIDF Amanah Investment Bank Bhd (MIDF Research) from May 15 to June 8, 2015, Dayang Enterprise Holdings Bhd had acquired an additional 22 million shares from the open market for Perdana Petroleu Bhd, representing almost 2.94 per cent of the issued and paid-up capital of Perdana.
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National
Ringgit slumps to 10-year low amidst Greek crisis
The ringgit fell to a 10-year low on Monday as investors weighed on whether Fitch Ratings would downgrade Malaysia on the back of a worsening situation in Greece deterred risk-taking. According to Bloomberg data, the ringgit dropped 0.4 per cent to 3.7830 a dollar in Kuala Lumpur. During the day, it fell to a low of 3.7843 which is the weakest in ten years since July 2005.
Newly-listed Sedania to ride on Axiata’s regional presence for growth
Sedania Innovator Bhd (Sedania) is riding on Axiata Group Bhd’s (Axiata) regional presence to enhance its growth. This was on the back of Sedania’s successful listing on Bursa Malaysia’s ACE Marketon Monday, making its debut at 40 sen per share which is a two sen premium over the issue price of 38 sen. Datuk Azrin Mohd Noor, Sedania’s managing director revealed that the Group also recently signed a five-year renewal contract with Celcom Axiata Bhd (Celcom) that extends its partnership till 2020.
Felda says to rely on debt to fund Eagle High stake purchase
Felda Global Ventures Holdings Bhd said it plans to rely mostly on debt to fund its US$680 million purchase of a 37 per cent stake in Indonesia’s PT Eagle High Plantations, adding that its debt-to-equity ratio would remain at a reasonable level. “The cost of debt is cheap at the moment. If you’re doing business you make sure you take it at the cheapest rate,” chief executive officer Mohd Emir Mavani Abdullah said in an interview.
Ikhmas Jaya launches prospectus pursuant to listing
Ikhmas Jaya Group Bhd, a bore piling and bridging specialist company launched its prospectus on Monday pursuant to its public issue of 182 million ordinary shares of RM0.25 each in Ikhmas Jaya Group Bhd on the Main Market of Bursa Malaysia. The group’s forthcoming listing at an offer price of RM0.57 per share entails a public issue of 126 million new shares.
‘Recent commercial 1MDB, IPIC transaction not guaranteed by govt’
1Malaysia Development Bhd (1MDB) clarified that neither the Ministry of Finance nor the government have provided guarantees for the recent commercial transaction between the company and International Petroleum Investment Corporation (IPIC). “It is publicly known that IPIC issued guarantees in 2012 for the payment of interest and principal on two US$1.75 billion bonds issued by 1MDB, totalling US$3.5 billion of principal and up to US$2 billion of interest. The Government has not guaranteed either of these bonds,” said 1MDB in response to various incorrect statements attributed to Tony Pua, in relation to a binding term sheet agreed between 1MDB and IPIC recently.