Thursday, 22 March 2012

News Highlights - IJM Land, KFC Holdings, Malaysian Airline System, Malaysia Building Society


IJM Land Bhd (RM2.17/share)
Partners Robert Tan to develop Johor Land IJM Land Bhd has acquired 50.0% equity interest in Nasa Land Sdn Bhd, a subsidiary of Aspirasi Ratna Sdn Bhd for RM51.0mil, in order to expand its landbank. In a statement to Bursa yesterday, the group said it had entered into a conditional share sale and purchase agreement with Aspirasi Ratna to acquire a total of one million ordinary shares at RM1 each in Nasa Land for a total cash consideration of RM51.0mil.

IJM Land decided to purchase the loss-making company after taking into consideration the future development potential of the remaining undeveloped land Nasa Land holds. IJM Land added that it will be funding the acquisition through internally generated funds.

Nasa Land is the land owner and developer of the Desa Palma, a mixed development project in Mukim Tebrau, Johor Baru, and it has 39ha of undeveloped land in the area. – The Edge


KFC Holdings (M) Bhd (RM3.75/share)
To spend RM63mil to set up more outlets in Msia and India KFC Holdings (M) Bhd’s (KFCH) managing director, Jamaluddin Ali, said it will spend RM63.0mil this year to expand its operations locally as well as in India.
He said KFCH which has at present 550 outlets throughout the country, will invest another RM45.0mil this year to open 15 additional outlets, with 10 of it being drivethrough. For the Indian market, they plan to spend RM18.0mil this year to add another nine outlets in Mumbai and Pune, bringing the total number to 26 in the country.
On the attempt by KFCH to improve customer service, he said, the company is in the midst of installing 100 Kiosk Display System (KDS) at its high-traffic outlets in the Klang Valley, Penang and Johor Baharu. He said the KDS will cut queuing-time at these outlets, thus providing much better service.
He added that installing the KDS at the KFC outlets, is also an attempt by the company which employs 35,000 staff throughout its operations, to improve Information Technology (IT) capability and hospitality among its frontline members. - StarBiz

Malaysian Airline System Bhd (RM1.37/share)
To be oneworld member soon By year-end Malaysia Airlines (MAS) would have become a full member of the oneworld alliance and would be able to offer connectivity to about 800 destinations
in 150 countries by riding on an expanded oneworld network.

MAS group chief executive officer Ahmad Jauhari Yahya said this membership will be among the significant catalysts that will complement their efforts to win back customers and become a profitable preferred premium carrier as outlined in their Business Plan.

Jauhari said the entry into oneworld would enhance its network considerably whileproviding baseload demand from fellow oneworld members. – StarBiz

Malaysia Building Society Bhd (RM2.24/share)
Biggest abandoned housing project in the country to be revived Malaysia Building Society Bhd (MBSB) will finance the builder and buyers of Malaysia’s biggest abandoned housing project, located in Bandar Baru Salak Tinggi, Sepang as part of its efforts to resolve its corporate legacy accounts issue.

MBSB, which is 65.5%-owned by the Employees Provident Fund (EPF), will provide term and bridging facilities of up to RM215.0mil to builder NCT United Development Sdn Bhd (NCT), and an additional RM243.0mil to the buyers, said its CEO Datuk Ahmad Zaini Othman.
Buyers will pay an interest rate of base financing rate minus 0.5%, which is slightly more expensive compared with conventional loans because these borrowers are mostly in their 50s. MBSB is also classified as an ‘exempt finance company’ and is thus not bounded by any financial regulators in Malaysia.

According to MBSB, the housing project was abandoned due to cost overruns coupled with the “unfavourable economic situation then”. NCT CEO Zulfikri Saidin said it will be renamed Sepang Perdana and is expected to be completed within two years. – StarBiz

Source: AmeSecurities

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