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Tenaga National Bhd (TNB) (TNB MK, Buy, TP: RM9.90) and other members of the consortium responsible for the Bakun transmission cable project are likely to raise RM10bn worth of bonds on a staggered basis to fund the eightyear job. “The funding will be sourced domestically as liquidity is still strong. But the bond market is still conservative and
investor appetite is still towards the AAA grades,” an unknown source said. The source added that the actual figure has not been finalised but the amount will be raised by the consortium on a project finance basis which includes equity (20% or about RM2.5bn) and debt (80%). The bonds will not be raised in one go but over eight years and that part of the financing should be in US dollars since a lot of imported materials will be used, the source said. (StarBiz)
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The Malaysian Insider has learnt from government sources that Prime Minister Datuk Seri Najib Razak discussed the plan to offer up to 10% of Sime Darby Berhad (SIME MK, Hold, TP: RM8.10) for sale to China at a recent Cabinet meeting. The unprecedented step was taken recently by the Najib administration and signals a move by the government to sell down its holdings in government-linked companies (GLCs) as well as strengthen strategic ties with certain countries by allowing them or their investment arms to hold equity in Malaysian blue-chip GLCs. Following the Cabinet meeting, the government informed the
Chinese government officially of its intent to offer a stake in Sime Darby Berhad for sale. It is unclear if the targeted buyer is China’s investment agency or any particular state-owned company. Government sources said they do not expect Sime Darby’s major shareholders — Permodalan Nasional Berhad or the Employees Provident Fund (EPF) — to sell down their stakes. Instead, it is believed Sime Darby will issue new shares. (The Malaysian Insider)
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Glomac Bhd (GLMC MK, Buy, TP: RM1.40) might buy more land in Cyberjaya, Selangor following the success of its RM180m flagship Glomac Cyberjaya, comprising 39 units of three-storey and three-and-a-half storey shop offices worth RM64m. The group executive vice- chairman Datuk Richard Fong said 75% of the units were sold within the week and if demand continued to be strong, they would look into purchasing more land. (BT)
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UBG Bhd’s share price hit limit-up in early trade yesterday, surging to a multi-year high of RM3.60 the day after it announced plans to venture into the oil and gas (O&G) sector. It ended the day at RM2.99, up 21 sen. UBG said the acquisition of Pearl Thailand added a new business to the group in the energy sector. This will complement the group’s current core business in infrastructure and construction. (Financial Daily)
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PPB Group Bhd saw a single block of 22.2m shares transacted off-market for a total of RM339.67m. Stock market data showed the block representing a 1.85% stake in PPB Group was transacted at RM15.30 a piece. The shares could have been either transacted by Kuok Brothers Sdn Bhd or the Employees Provident Fund. (Financial Daily)
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The Fiji government has offered Naim Holdings Bhd a US$100m (RM354m) contract to rehabilitate a national highway on Fiji’s main Viti Levu island. Naim vice-president Chong Lipe Hwat said the company would consider the offer. The project involves works on 338km-road around Viti Levu. (StarBiz)
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The government did not rule out the possibility of Felda Holdings Bhd buying a 21.1% stake in Tradewinds (M) Bhd from Grenfell Holdings Sdn Bhd, a firm linked to Tan Sri Robert Kuok. "Those corporate exercises, we will announce when the time comes," said Prime Minister Datuk Seri Najib Razak after chairing a Felda management meeting in Kuala Lumpur yesterday. He declined to say more but added that Felda plans to announce a few corporate exercises. (BT)
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The country’s largest producer of nitrile gloves, Hartalega Holdings Bhd, plans to spend up to RM130m in capital expenditure over the next 24 months to cope with the strong demand of its products, said managing director Kuan Kam Hon. The company will utilise the funds – largely self-financed – to install six high-capacity glove production lines at Plant 1, replacing 10 older lines. It also plans to construct a fifth plant which will have 12 new advanced high-capacity lines, increasing its production capacity to 10.5bn pieces per annum from the current 6.2bn pieces per annum. Plant 5 is targeted to be completed by 2H11. (StarBiz)
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