News Highlights - DRB Hicom, Formis Resources, Malaysian Airline System, Plantation Sector

DRB-Hicom Bhd (RM2.44/share)

Owns 99pc of Proton shares

DRB-Hicom Bhd’s takeover offer for Proton Holdings Bhd shares closed at 5pm yesterday, with it ending up holding 99.09% of the national carmaker’s 544.1 million shares.

It had bought a 42.7% stake in Proton from Khazanah Nasional Bhd at RM5.50 a share, or RM1.29bil, in January before making an offer for the remaining stakes at the same price. – Business Times

Formis Resources Bhd (RM0.885/share)

Formis to get Microlink shares

Formis Resources Bhd has clarified that it will receive 463.363 million new Microlink Solutions Bhd shares as consideration for the divestment of its interest in four subsidiaries to Microlink. On Tuesday, the company indicated that about 436.636 million new shares would be issued, Formis said in a statement. – StarBiz

Malaysian Airline System Bhd (RM1.17/share)

MasWings set to fly Kota Kinabalu-Palawan route by end October

Buoyed by the successful first phase of its direct international flights to Tarakan and Pontianak in Indonesia and Brunei Darulsalam, MASwings will embark on its second phase of international route expansion by end of October this year. In announcing this, its chief executive officer Datuk Captain Nawawi Awang said the new MASwings’ international air service would cover the routes of Kuching-Balikpapan (Indonesia), and Kota Kinabalu-Puerto Princesa, Palawan (Phillippines). He added that they are still in the process of getting approval and clearance from the relevant authorities in the Philippines. MASwings, a fully owned subsidiary of Malaysia Airlines, plans to operate the routes three times a week.  - Bernama

Plantation Sector

Move to revise crude palm oil tax

The long overdue revision of Malaysia’s crude palm oil (CPO) export tax policy which has been unchanged since the 1960s will likely take place by year-end or early next year, according to sources close to the industry. Sources said the Plantation Industries and Commodities Ministry had last month submitted to the Cabinet several proposals including a fall-back plan to abolish the duty-free CPO export quota while seeking lower CPO export duty. Later this month, the ministry and the Malaysian Palm Oil Board (MPOB) will hold consultation sessions with industry players, particularly local independent palm oil refiners affected by Indonesia’s new palm oil export tax structure. In September last year, Indonesia reduced its export duty on refined bleached and deodorised (RBD) palm olein in bulk to 7% from 15%, while the export duty on CPO is unchanged at 15% to boost export of its processed oils. Palm Oil Refiners Association (Poram) chief executive officer Mohammad Jaaffar Ahmad said the fall-back plan would give confidence back to independent palm oil refiners that the Government was serious to support foreign and local investments in Malaysia. Secondly, it will also help improve the overall refining operational capacity, assuming that there will be less CPO being exported now because of the duty involved. There are 51 palm oil refineries in Malaysia and most of them are Poram members. - StarBiz 

Source: AmeSecurities