Wednesday, 27 June 2012

News Highlights - IGB Corporation, TSH Resources, CIMB Group Holdings, Tenaga Nasional


IGB Corporation Bhd (RM2.70/share)
To fund growth with REIT listing proceeds
IGB Corp Bhd is expecting to raise some RM800.0mil in cash from the upcoming listing of its retail real estate investment trust (REIT), which is expected to happen in mid-August. IGB Corp group managing director Robert Tan said the proceeds would be used for future expansion activities, which “are in the pipeline.” Tan also said IGB Corp was mulling over another two REITs to unlock the value of its office and hotel assets. To recap, the listing of IGB’s maiden REIT, the retail REIT, in the third quarter of this year is to unlock the value of its two prime retail assets - Mid Valley Megamall and The Gardens Mall. – StarBiz

TSH Resources Bhd (RM2.37/share)
Unit launches takeover offer
TSH Resources Bhd’s indirect wholly-owned subsidiary Bisa Jaya Sdn Bhd, together with Chin Leong Thye Sdn Bhd, Lee Chin Hwa, Lee Min Huat and Lee Sep Pian, has proposed to acquire all the voting shares of RM1 each in Pontian United Plantations Bhd not already owned by them at an offer price of RM90 per share via a voluntary conditional takeover offer. It told Bursa Malaysia yesterday that the joint offerors directly held 1.71 million Pontian shares, or a 19.72% stake. The offer price of RM90 will be satisfied through RM45.06 in cash and RM44.94 via the issuance of twenty-one TSH “consideration shares.” TSH consideration shares represents the ordinary shares of 50 sen each in TSH to be issued at a price of RM2.14 per TSH Share, which is about a 10% discount to the five-day volume weighted average market price of TSH Shares up to and including June 25. – StarBiz

CIMB Group Holdings Bhd (RM7.56/share)
Muhibbah: CIMB Bank withdraws support for APH restructuring
CIMB Bank Bhd has withdrawn its support for the proposed scheme to restructure the Asia Petroleum Hub Sdn Bhd (APH) project. Muhibbah Engineering (M) Bhd said yesterday, its legal advisers were informed of the bank’s decision to withdraw its support for the restructuring. The   restructuring was filed previously by the receiver and manager, PricewaterhouseCoopers, which was appointed by the bank. – StarBiz

Tenaga Nasional Bhd (RM6.70/share)
TNB, Govt to discuss ‘extra RM1.6bil gas bill’
Tenaga Nasional Bhd (TNB), which is getting imported gas in two months’ time, is talking to the Government on an extra RM1.6bil that will be charged under the market pricing portion of the deal. TNB CEO Datuk Seri Che Khalib Mohd Noh said by September, Tenaga will have supply of gas and the issue of insufficient volume of gas will be a thing of the past. The regassification plant in Malacca, which will allow for the import of liquefied natural gas (LNG), is slated for completion in August. Post September, Tenaga will get delivery on any volume they want, except that any amount above 1,100 million standard cu ft per day (mmscfd) will be at market price. Currently, TNB gets supply of 1,100 mmcsfd of gas; this will be supplied at the government-regulated price of RM13.70 per million metric British thermal units (mmbtu). Meanwhile, the market price per mmbtu is RM45. - StarBiz

Source: AmeSecurities 

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