News Highlights - AirAsia, MSM Malaysia Holdings, KPJ Healthcare, Wah Seong Corporation

AirAsia Bhd (RM3.68/share)

To sign more joint venture pacts with regional airlines

Low-cost airline, AirAsia Bhd, will sign five more joint-venture agreements withregional airlines within the next two years to expand its business in the region. Chief executive officer, Tan Sri Tony Fernandes, said the move was in line with AirAsia’s ambition to become the leader in the industry. AirAsia had signed a joint venture agreement with Japan’s All Nippon Airways to form AirAsia Japan, which is expected have its first flight in August. In line with the company’s expansion strategy, he said, the airline was also considering placing an additional order for 50 planes to its existing order of 75 planes, scheduled to be delivered by 2016. – Bernama

MSM Malaysia Holdings Bhd (RM5.24/share)

Converting sugar cane plantation in Perlis to rubber estate

MSM Malaysia Holdings Bhd, the leading sugar producer in Malaysia, is in the process converting its 5,000 hectares of sugar cane plantation in Perlis to rubber estates. Its Executive Director Datuk Sabri Ahmad said the land is no longer suitable for sugar cane plantation due to climatic conditions. Hence, he said the Felda group’s sugarrefining arm is now looking at regional expansion to further intensify its involvement in upstream activities. – Bernama

KPJ Healthcare Bhd (RM5.92/share)

Plans to conclude two acquisitions by year-end

KPJ Healthcare Bhd’s managing director, Datin Paduka Siti Sa’diah Sheikh Bakir, said they are assessing both local and international offers and hope to conclude at least one local acquisition and one overseas by year-end. However, she did not reveal the size of the acquisitions. Siti Sa’diah also said KPJ was keen on acquiring operational hospitals and are more interested in Asean than any other parts of the world.  Separately, she said local standalone hospitals were also its potential acquisition targets. She said these standalone hospitals could leverage on KPJ’s extensive network as well as cost savings benefits as training and procurement would be centralised.

KPJ currently has 21 hospitals locally, two hospitals in Indonesia and an age-care facility in Australia. Last month, Siti Sa’diah said KPJ would be investing more than RM1.0bil to set up nine more hospitals throughout the country in its effort to widen its healthcare services. – StarBiz

Wah Seong Corp Bhd (RM1.84/share)

Wah Seong, Pan Sarawak eye Petra Energy

Pipe-coating outfit Wah Seong Corp Bhd and Pan Sarawak Holdings Sdn Bhd have emerged as the frontrunners to acquire a strategic 26.9% equity interest in oil services company Petra Energy Bhd.

Perdana Petroleum Bhd, formerly known as Petra Perdana Bhd, is the current owner of the strategic block of shares in Petra Energy. The marine services company has given CIMB the mandate to sell the block of shares in April this year, under a bidding exercise that closes tomorrow. Wah Seong deputy managing director, Giancarlo Maccagno acknowledged that the company was interested in the block but had yet to make an official bid. – The Edge 

Source: AmeSecurities