Wednesday, 28 March 2012

News Highlights - IGB Corporation, Malaysian Airline System, Malaysia Building Society, Tenaga Nasional


IGB Corporation Bhd (RM2.85/share)
Mulls over megamall in JB
IGB Corporation Bhd is looking to develop a megamall in Johor Baru (JB), similar to the multi-billion ringgit Mid Valley Megamall in Kuala Lumpur that was built by the group about 12 years ago. According to sources in the property sector, IGB is to sign a memorandum of understanding (MoU) with Selia Pantai Sdn Bhd today for the joint development of the megamall in JB. The JB megamall project is estimated to cost RM2.0bil to RM3.0bil, and will take up some 40 acres (16.2ha) of land, with about three million sq ft in built-up area. In comparison, the Mid Valley Megamall has a built-up area of about 4.5 million sq ft.
The sources said IGB may take up a 70.0% stake in the JB megamall project, with Selia Pantai holding the rest. Selia Pantai is a joint venture between Teluk Zamrud Sdn Bhd and Kumpulan Prasarana Rakyat Johor (KPRJ), which is the Johor state investment company. – The Edge

Malaysian Airline System Bhd (RM1.36/share)
To fly AirAsia X passengers from four cancelled routes
Malaysia Airlines (MAS) has signed a re-accommodation agreement (RA) with AirAsia X to accommodate the latter’s passengers on four routes cancelled by using excess capacity on Malaysia Airlines flights. The four routes involve Mumbai, New Delhi, London and Paris. In a statement, MAS said both economy- and premium-class passengers with confirmed AirAsia X tickets issued before January 13 to the four routes would be transferred to MAS and flights will be between March 28 and October 27.  It added that under the terms of the RA, Malaysia Airlines would receive upfront cash payments or pre-payments on tickets for the re-accommodated passengers before departure. To date, MAS has received a prepayment of RM20.0mil in cash. The national carrier said it benefits from the arrangement as it is able to achieve higher passenger numbers on its flights which would be incremental to its normal load patterns.  – Business Times

Malaysia Building Society Bhd (RM2.17/share)
Denies eyeing London properties
Malaysia Building Society Bhd (MBSB) has refuted a local newspaper report that it is looking into opportunities in the London property market. In a statement yesterday, MBSB said it has not made any such statement and wishes to inform that the company has no plans to expand its business overseas.
Quoting an industry source, the report in a local Malay daily said that MBSB’s overseas venture plan will be made with the cooperation of its main shareholder, the Employees Provident Fund. It also said the plan with a time-frame of between five and seven years was aimed at enhancing the scope of future income generation and profit for MBSB. – The Edge

Tenaga Nasional Bhd (RM6.49/share)
Signs Reppa with Core Competencies to purchase energy generated from waste
Utility giant, Tenaga Nasional Bhd, has signed a Renewable Energy Power Purchase Agreement (Reppa) with Core Competencies Sdn Bhd to purchase energy generated from municipal solid waste. The move marked a new era for the national energy company in promoting energy generation using green technology.
Core Competencies chairman Datuk Ariffin Aton said through the agreement, the national utility company will purchase energy generated from its plant, currently in Semenyih, Selangor, for 42 sen per KW/hour, over three times higher than the rate of normal IPP of 13 sen. The agreement, for a tenure of 21 years, would see the company initially providing 64 megawatt (1 megawatt = 1000 kilowatt) of electricity per day.
Ariffin said a plant in Batu Pahat, Johor, estimated to cost RM200.0mil, has already been approved by the government and will be developed via public-private-partnership. The plant, scheduled to be operational in 2014, will produce an extra 13 megawatt per hour of electricity from 1000 tonnes of waste per day of which 10 megawatt per hour will be exported to the national grid and the rest will be used internally. – Bernam

Source: AmeSecurities 

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