Integrax/KYM/Perak Corp: Harun Halim Rasip, Integrax CEO is said to be looking for an exit from the company after a long drawn out feud among shareholders of the port operator. Sources said Harun is in talks with several parties for the disposal of his block of shares. Currently, Harun jointly holds a 37.8% stake in Integrx with his brother, Amin Halim, via private companies. Amin is also chief executive of the company. Among the parties said to be interested in Harun’s block are Datuk Lim Kheng Yew of KYM and Perak Corp Bhd.
MUIB: Negotiations to sell MUI Continental Insurance Bhd, if successful, is expected to improve MUI’s debt balance sheet. Reducing gearing aside, the sale of MUI’s insurance arm means that the group’s financial services division will be left with mainly the universal broker – PM Securities Sdn Bhd – which is parked under PM Capital, and indirect associated company of MUI. Some quarters may reckon that MUI may concentrate on expanding the stockbroking arm going forward. The sale could potentially fetch rm135 million for its 52.21% stake in the insurer.
MUI’s total net debts stood at rm754 million or gearing ratio of 107% as at Sept 2010. Its shareholders’ funds had down to rm701 million due to rm2.1 billion in negative reserves caused by accumulated losses mostly in the 1997/1998 crisis. Without major asset disposals over the last three years, the group’s had pared down borrowings using mostly internal generated funds. A bulk of debts was at MUI’s level, with minimal borrowings at its two listed subsidiaries PM Holdings and PM Corp.
Going forward, a source said MUI’s focus in is financial services division would be to elevate its UB into IB. The group is still in the process of finding a strategic partner to help PM Securities in its aspirations to become an IB with a regional reach with no time frame.
Tanco: Sources say Tanco which is bogged down by a rm270 million loan it took from a unit of Lehman Brothers in 2007, may have secured a substantial reduction in its debt obligations.
SP Setia: In late Sept 2010 that SP Setia might be acquiring one of the largest pieces of prime land in Bangsar, KL. The report, quoting Ministry of Health deputy director general Datuk Maimunah, said the six research centres of the Ministry’s Institute for Medical Research would be brought together under one roof as the 1NIH integrated complex, which would be built in Setia Alam, Shah Alam, a 2500 acre township being developed by SP Setia.
This would mean that several thousnad ministry staffers will soon be shopping there, thus benefiting the shops and retail outlets in the township. The icing on the cake, however is that the government will swap the 1MR land in Jalan Bangsar for the land and construction of the 1NIH is Setia Alam by the SP Setia group. This way, the cost for the integrated complex will not appear as a cost in the federal budget. SP Setia offered the government a parcel of land in Setia Alam where it would build the proposed 1NIH at a cost of rm600 million to rm700 million.
It is believed that SP Setia won the bid through a consortium that includes one or two partners. However, SP Setia is not expected to develop the 1MR land soon, because the company will have to build new facilities for the six research institutes in Setia Alam to make the move possible. The company will need to draw up a master plan for the development and submit it for approvals.
SP Setia: 7.23 (OSK), 5.51 (CIMB), 4.46 (ECM), 6.90 (MBB), 4.94 (Inter Pacific), 8.05 (RHB), 5.50 (Kenanga), 6.80 (AMResearch)
IJM Corp/KEURO: Sources say the long overdue West Coast Expressway (WCE), which will run from Banting, Selangor, to Taiping in Peak, is posed for a financial close. According to sources, the National Economic Action Council, which is chaired by OM Datuk Seri Najib has approved the project. It is now awaiting approval from the Cabinet. The sources say the promoter of the project, Konsortium LPB Sdn Bhd has already firmed up the financial close of the project. Some portions of the expressway will be constructed with a soft loan from the government. The government has in principle agreed to the soft loan because some stretches of the highway are not commercially viable.
IJM Corp: 5.01 (RHB), 7.50 (HDBS), 5.24 (MIDF), 7.52 (AmResearch), 5.51 (TA), 6.60 (OSK), 6.40 (MBB), 7.70 (Credit Suisse)
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