Market News 4/5/06
IJM Corporation Bhd’s associate IJM Construction (Middle East) LLC has secured a RM126m project to build a 34-storey office complex in Dubai. Work on the complex, with a gross floor area of 50,000 sq metres, would take 24 months. IJM Construction is a 49% associate of IJM Corporation. The project was awarded by Fortune Investment Group LLC (FIG), Dubai for the office complex known as T1 Tower at Jumeirah Lake in Dubai.
Telekom Malaysia Bhd (TM) unit TM International Sdn Bhd (TMI) has in-principle agred to provide certain marketing and technical services to a Saudi Telecom Company of Saudi Arabia (STC)-led consortium bidding for the third mobile licence in Egypt. Subject to it meeting performance targets, TMI will have the option to acquire some equity interest in the consortium's joint venture (JV) company that will be formed if it is awarded the licence. STC is the incumbent telecommunications operator in Saudi Arabia and among the top 15 telecommunications operators worldwide, based on market capitalisation. It is the largest operator in Middle East and North Africa based on revenues of US$8.8b (RM31.75b) in 2005.
CIMB Group Sdn Bhd (CIMBG) has completed its Southeast Asia stockbroking platform following the acquisition of BNP Paribas Peregrine Securities (Thailand) Ltd for US$15.4m cash (RM56.49m). CIMB-GK Thailand holds 4 licences for the securities brokerage, securities dealing, securities underwriting and investment advisory. CIMB Group chief executive officer Datuk Nazir Razak said: "This acquisition completes our Southeast Asian stockbroking platform, which is also the foundation for us to develop other investment banking products and services.
AirAsia Bhd is considering turning Labuan, an island off orneo, into a hub from where it could fly to places such as Macau and Guangzhou in China and the Philippines, the Business Times reported, citing CEO Tony Fernandes. Having Labuan as a hub would allow AirAsia to tap into markets in Brunei and Sabah, the tourism market as well as provide connections for the offshore financial center, the report said.
Country Heights said it will sell RM150m (US$42m) of bank-guaranteed commercial papers and medium-term notes to refinance some debt to cut borrowing costs and finance the development of properties of the Country Heights Damansara Project.
Killinghall Malaysia Bhd, shareholders of Southern Bank Bhd, approved the sale of the company's stake in Southern Bank Bhd. to Bumiputra-Commerce Holdings Bhd. for RM1.13b, Chairman Syed Yusof Nasir said. Killinghall shareholders accepted the cash offer at a meeting in Kuala Lumpur yesterday.
Malaysia Airports Holdings plans to gradually replace 326 units of service vehicles it owns nationwide with leased vehicles, part of efforts to cut operating costs and improve efficiency, the Business Times reported, citing Azmi Murad, general manager for the company's unit in Sepang, outside Kuala Lumpur. The company hopes to cut its annual vehicle maintenance cost by about 30% by replacing the vehicles by 2010, the report said.
Syarikat Takaful Malaysia Bhd said the company has not received any formal offer from Bank Kerjasama Rakyat Malaysia Bhd., a cooperative bank, on the lender's plans to buy a substantial stake in Syarikat Takaful. It also said it was not in formal discussions with the bank. The Business Times reported on May 2 Bank Kerjasama was willing to buy 30% of Syarikat Takaful for RM83m.
Telekom Malaysia Bhd, TM International Sdn., the unit of Telekom that oversees its international businesses, has signed an MOU with Saudi Telecom Co. to help it bid for a third mobile license in Egypt. TM International will provide sales and marketing services, information technology, network and customer services to Saudi Telecom and its consortium partners, TM International said.