Fajarbaru gets RM72.92m construction job

KUALA LUMPUR (March 20): Fajarbaru Builder Group Bhd has secured a RM72.92 million contract from Messrs Shaw Plaza Sdn. Bhd to tear down and rebuild the Shaw Parade complex in Kuala Lumpur.

It said phase one involved the car park, shops and office from the ground floor to the fourth floor while the second phase was to build a management office and a 11-storey budget hotel with 288 rooms.

Fajarbaru said the CONSTRUCTION [] period for phase one was 18 months, starting April 2 and phase two was over nine months, starting Oct 2, 2013.



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Cypark targets annual turnover of RM45m from solar plants

KUALA LUMPUR (March 20): CypARK RESOURCES BHD [] has targeted to generate turnover of about RM45 million from 2013 when the 33 MW solar capacity from its solar plants are completed.

Cypark executive chairman and founder Tan Sri Razali Ismail said the company targeted to complete the installation of an additional 25MW of solar plants in Johor, Perlis, Melaka and Negeri Sembilan by end-2012.

“With the targeted completion of 33 MW total solar capacity, Cypark expects to generate annual turnover of about RM45 million from year 2013 onwards,” he said, adding that by January 2013, Cypark hoped to fully transform itself into a “green utility company” specialising in the area of solar Photovoltaic and waste to energy”.

He was speaking at the official launch of the Cypark’s largest solar park by Prime Minister Datuk Seri Najib Tun Razak in Pajam, Negeri Sembilan. It is the largest grid connected solar park (41.73 acres) and the solar park with the most number of solar panels (31,824).

Work on the 8MW solar park started in September 2011 and was completed by Dec 31.

Cypark will start exporting and selling its energy to TENAGA NASIONAL BHD []’s grid at 95 sen per kilowatt on March 28, 2012.



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KLK to exit Crabtree & Evelyn biz for RM465m

KUALA LUMPUR (March 20): KUALA LUMPUR KEPONG BHD [] (KLK) is exiting its personal care products under the brand name “Crabtree & Evelyn” with the proposed disposal of CE Holdings Ltd for US$155 million (RM465 million).

KLK said on Tuesday that it was disposing the entire 63.74 million shares or 100% stake in CE Holdings to Khuan Choo International Ltd of Hong Kong.

CE Holdings is the investment holding company of its retailing business which manufactures, retails and distributes personal care products under Crabtree & Evelyn.

KLK said the sale of CE Holdings would enable it to exit from a non-core business and instead focus on its core PLANTATION []s and oleochemical businesses where the returns were significantly higher.

“The proposed disposal is expected to bring in a gain on disposal of approximately 11.5 sen per share for the financial year ending Sept 30, 2012,” it said.



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Naza invests RM30m for a new robotic assembly line at Gurun plant

KUALA LUMPUR (March20): Naza Automotive Manufacturing (NAM), the manufacturing arm of the Naza Group, has invested RM30 million for a new robotic assembly line at its plant in Gurun, Kedah for the new Peugeot T73.

In a statement Tuesday, Naza group join executive chairman SM Nasarudin SM Nasimuddin, Joint Group Executive Chairman of the Naza Group of Companies, said quality consistency was needed for high production volume models such as the T73, which would also be exported to other markets in the region.

"We will produce 60,000 units of the T73 at NAM over a five-year period beginning in 2012. Of the total volume produced, some 60% is targeted to be exported to right-hand drive countries in Asean as well as markets outside the region," he said.

The new assembly line is the first line at NAM's facility in Gurun with automated robots to ensure the quality consistency for the T73, which is a new C-segment Peugeot that will be launched for the Malaysian market in the coming months, he said.

SM Nasarudin said NAM's investment of RM30 million was part of the company's RM714 million expansion and upgrading exercise which commenced in 2010 and was scheduled to be completed end-2015.

The exercise includes investments in facility upgrades, plants expansion, new model introductions and research and development, he said.

France's Ambassador to Malaysia, Martine Dorance, recently visited NAM for a tour of the new robotics assembly line and was given a briefing on the Naza Group's plans for Peugeot and the T73.

She was accompanied by members of the French Embassy, the Malaysian French Chamber of Commerce and Industry and officials from Automobiles Peugeot.

"We are honoured that Her Excellency Madame Martine Dorance visited NAM to inspect the close collaboration between the Naza Group and Automobiles Peugeot in making Malaysia the latter's manufacturing hub for the region," said SM Nasarudin.

NAM, which has 1,000 employees, commenced operations in 2004 with a RM500 million facility, which includes an assembly plant, two-storey office, a test track, lots for vendors and suppliers and staff accommodation on a 140-acre parcel of land.



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KLK to expand oil palm plantations in Indonesia

KUALA LUMPUR (March 20): KUALA LUMPUR KEPONG BHD [] is expanding its oil palm PLANTATION [] area in Indonesia with the acquisition of PT. Global Primatama Mandiri (PT GM) which has the rights for 7,400 ha of land in Kalimantan for plantations.

KLK said on Tuesday its subsidiary KL-Kepong Plantation Holdings Sdn Bhd (KLKPH) had entered into two agreements to acquire 90% of PT GM for RM3.60 million.

KLKPH would acquire a 52.4% equity stake in PT GPM from Handojo Leman Byono and another 37.6% from Joniansyah respectively.

KLK said PT GPM holds a certificate of licensed location for 7,400 ha of land in Kecamatan Kelay, Kabupaten Berau, east Kalimantan which it intends to develop into oil palm plantations in due course.

“The purchase consideration will be financed by KLK’s internally generated funds,” it said. “The proposed acquisition is in line with KLK’s strategy to further increase KLK Group’s oil palm plantation area in Indonesia.”



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RAM Ratings keeps negative rating watch on MRCB Southern Link’s debt notes

KUALA LUMPUR (March 20): RAM Rating Services Bhd is maintaining the respective AA3 and A2 ratings of MRCB Southern Link Bhd’s (MRCB SL) RM845 million secured senior Sukuk (2008/2025) and RM199 million junior Sukuk (2008/2027).

It said on Tuesday that however, the ratings of the senior and junior Sukuk continue to be on negative Rating Watch due to the uncertainties of collecting toll at the Eastern Dispersal Link Expressway (EDL).

To recap, on March 9, Prime Minister Datuk Seri Najib Tun Razak announced that motorists who do not use the EDL will not be required to pay toll charges.

However, the ratings agency pointed out the announcement differed from the terms of the concession agreement, under which all motorists (with the exception of motorcycles) that use the Johor Baru-Singapore Causeway must pay the EDL toll charges.

MRCB SL is a unit and funding conduit of MRCB Lingkaran Selatan Sdn Bhd, which holds the concession for the 8.1-km EDL in Johor Bahru.

The proceeds from the Sukuk were used to fund the CONSTRUCTION [] of the EDL, which was fully completed on Jan 15, 2012 and was awaiting the issuance of a certificate of fitness.

Pending finalisation of some technical issues, the Government is expected to make a further announcement by end-March 2012.

“RAM Ratings will closely monitor the relevant developments; any changes in the terms of the concession will be reassessed for credit implications as they are made available,” it said.

The ratings agency, in its comments on the negative Rating Watch, said this reflected uncertainties pertaining to the EDL’s ability to commence tolling operations, its eventual tolling mechanism and traffic volume.

“These factors could have a negative bearing on the Company’s cashflow profile and debt-servicing ability throughout the tenure of the sukuk.

“We highlight that, should MRCB SL be unable to begin tolling operations and not receive timely and adequate cash compensation, it is likely to face a shortfall in its cashflow to meet its debt obligations in December 2012. Under these circumstances, there could be a multi-notch downgrade for the senior and junior Sukuk,” it said.



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MMC, Gamuda in focus after MRT projects

KUALA LUMPUR (March 20): MMC Corp and Gamuda’s securities provided some life into the otherwise lacklustre market on Tuesday as investors stayed mostly on the sidelines in line with the cautious regional markets.

The FBM KLCI closed up 4.02 points or 0.26% to 1,577.62, lifted by gains in IOI Corp and Tenaga. Turnover was 2.14 billion shares valued at RM1.76 billion. There were 314 gainers, 431 losers and 376 counters unchanged.

Hong Kong’s Hang Seng Index fell 1.08% to 20,888.20, Shanghai Composite Index lost 1.38% to 2,376.84, Taiwan’s Taiex shed 0.89% to 7,972.70 but Singapore’s Straits Times Index added 0.42% to 3,002.73.

Market sentiment was cautious as reflected in the broader market where declining stocks led advancers. While there was some fund support for key stocks, trading activity was heavy in penny stocks and lower liners.

The KLCI is one of the laggards among the key regional markets, with the index up 6.27% in US dollar terms year-to-date compared with STI’s 16.55%, Hang Seng Index’s 9.87% and Shanghai Composite’s 7.77%.

IOI Corp and Tenaga rose five sen each to RM5.29 and RM6.54, pushing up the index by 1.39 points.

MMC added 15 sen to RM2.95, pushing the index up by 0.57 of a point. Gamuda rose 12 sen to RM3.74 and Gamuda-WD 10 sen to RM1.45.

The securities of the companies saw active trade after their joint venture won the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

Hartalega was the top gainer, up 26 sen to RM8.19, Ta Ann 13 sen to Rm5.88, HLFG 12 sen to RM12, and Batu Kawan 10 sen to RM18.60.

Share prices of Metronic Global and its 17%-owned unit Ariantec Global slipped in active trade. Ariantec fell 3.5 sen to 10.5 sen and it was the most active with 121.23 million shares done while Metronic eased two sen to 11 sen.

Focus, which was queried over the sharp increase in the price of its securities and volume, saw its share price ending the day two sen higher at 21.5 sen. Focus-WA added four sen to eight sen and Focus-WB two sen to 14.5 sen.

Among the index-linked stocks, Petronas Chemicals fell three sen to RM6.71, Public Bank two sen to RM13.62 and RHB Cap three sen to RM8.

Aeon was the top loser, down 25 sen to RM9.13 with 20,500 shares done. Cypark lost 11 sen to RM1.87 and United PLANTATION []s 10 sen to RM25.



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Jotech gets shareholders’ nod for merger with AIC, AutoV

KUALA LUMPUR (March 20): JOTECH HOLDINGS BHD [] has received shareholders’ approval for the proposed merger with AIC CORPORATION BHD [] and AutoV Corporation Bhd.

Jotech, which makes precision stamped parts, said on Tuesday the approval was given at the EGM and court convened meetings on Tuesday.

All three companies would be collectively be acquired by a special purpose vehicle -- Temasek Formation Bhd (TFB) – which is owned by executive chairman of Jotech and AIC, Datuk Goh Tian Chuan.

To recap, TFB had received the Securities Commission’s approval in January 2012 for the proposed merger for RM711 million to be satisfied via the issuance of new TFB shares.

TFB would acquire Jotech at 18 sen per share, or 20% above the respective five-day volume weighted average market prices (VWAMP) of Jotech shares up to and including the price at July 26, 02011 of 15 sen.

The offer of 9.0 sen for each Jotech warrant was 17% over the respective five-day VWAMP of Jotech warrants up to and including the price at July 26, 2011 of 7.7 sen.

Jotech said the proposed swap ratio would be on the basis of three new TFB shares for every two existing Jotech shares. As for the warrants holders, the proposed swap ratio will be three new TFB shares for every four existing Jotech warrants.

Commenting on the latest development, Goh said the proposed merger would beef up Jotech both financially and market size to fully implement its business plan strategies.

“The proposed merged entity would be able to complement its counterpart’s strengths to achieve better business synergies going forward and further solidify its leading position in the industry,” he said.

The EGMs for AIC and AutoV would be held on March 21, and March 22.



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