Market news 21/4/06
AirAsia Bhd has launched its biggest online campaign for 2006, with over 500,000 seats available under its Super Deals promotion at super low fares beginning from RM0.99. Bookings on all AirAsia’s domestic and international flights in the Super Deals promotion can be made for travel right up to March 2007, it said on April 19. The promotion is only valid for online purchase and available for booking from April 18 to April 30 for travel between June 15 this year and March 24, 2007. The low fares range from RM0.99 to RM79.99 one way to as many as 30 domestic and international routes departing from Kuala Lumpur and Johor Bahru.
These fares exclude airport taxes and fees, and fuel surcharges.
Goldman Sachs International has emerged as a substantial shareholder in DiGi.Com Bhd after it acquired 40.08m shares in early April. Filings to the stock exchange showed that Goldman Sachs acquired 37.8m shares or 5.04% from the open market on April 6. It also acquired 1.5m shares on April 7 and 775,100 shares on April 10. With the acquisitions, its total shareholding stands at 5.34% comprising 40.08m shares.
Ramunia Holdings Bhd via its unit Ramunia Fabricators Sdn Bhd has received a RM90m contract from Samsung Heavy Industries Co Ltd for the fabrication, engineering and load-out of an eight-legged jacket, piles and bridges. The contract was for Oil and Natural Gas Corporation Ltd of India under its East Development project, offshore Mumbai. It said the contract is expected to contribute positively towards the earnings of the group for the financial years ending Oct 31, 2006 and 2007. “Ramunia’s contract portion will take approximately 12 months where the expected delivery is scheduled for September next year,” it said.
Goldis Bhd’s 81%-owned JiangSu Gold Water Co Ltd will team up with two Chinese companies to finance, build and operate a sewage treatment plant in DaJiJia, ShanDong Province in China. Goldis said JiangSu had on April 19 signed a concession agreement with the Yantai Economic and Technical Development Zone City Management and Environmental Protection Bureau (Yantai DZEPB) and YanTai Perfect Environment Co, Ltd (YPE). Under the agreement, the three parties would set up a special purpose vehicle (SPV) to undertake the concession. JiangSu would subscribe for 75% interest in the SPV for RM3.44 million. “The rationale for the investment is to further enhance and broaden Goldis' group involvement in the water treatment business and to tap the revenue arising from China’s urbanisation trend,” the company said.
The country's biggest shipping group, MISC Bhd, said on April 19 it had ordered four new chemical tankers from South Korea's STX Shipbuilding Co, for delivery in 2009. MISC, the world's largest carrier of liquefied natural gas and Malaysia's third-largest listed firm, gave no value for the orders, however. STX said in Seoul on April 3 that it had won orders worth US$399.4 million (RM1.46 billion) from India and Malaysia to build eight chemical tankers, but did not name the buyers. MISC, which is 62%-owned by state energy firm Petronas, said the tankers would have a gross weight of 38,000 deadweight tonnes each. "This is aimed at
expanding the capacity and replacement of single hull vessels of MISC Bhd's chemical fleet for the purpose of increasing its market share in chemical and palm oil shipping," the company said in a statement to the stock exchange. Malaysia is the world's biggest producer and exporter of palm oil. MISC currently has a fleet of 108 vessels, including 18 chemical tankers, its website showed. MISC shares closed on April 19 up 0.6% at RM8.90 in line with a higher market.
Dialog Group Bhd will form a venture with Singapore-based Star Specialist Engineering Pte to expand its business in Singapore and the region. Dialog will spend S$5.2 million ($3 million) for a 60 percent stake in a joint venture company called OTEC Holdings Pte. Otec has won projects in Singapore, Malaysia, Vietnam and has equipment orders in the Middle East and Russia, it said.
Malaysian Airline System Bhd has budgeted 700 million ringgit to cut 6,500 jobs, or 28 percent of its employees, Singapore's Straits Times said. Letters offering benefits will be issued to the airline's 23,000 employees this week under the plan to cut jobs, the newspaper said, citing an unnamed airline official involved in talks between company management and union representatives in Kuala Lumpur.
Southern Bank Bhd will pay RM20m to Chief Executive Director Tan Teong Hean who will quit after the takeover. The payment is part of the RM50m ringgit set aside by the bank for loyalty and severance payments announced last month, it said. It will also pay three of its independent directors 500,000 ringgit each, it said. The payments will reduce Southern's earnings by 21.5 million ringgit this year.