News Highlights - Malaysian Airline System, IJM Corporation, Kumpulan Perangasang Selangor, Berjaya Sprots Toto

Malaysian Airline System Bhd (RM1.15/share)

In code-share pact with JAL

Malaysia Airlines (MAS) is targeting to complete code-sharing arrangements with four more oneworld member airlines, a day after announcing the signing of similar agreement with another member of the global alliance, Japan Airlines (JAL). To date, MAS has signed 23 code-sharing agreements with various airlines and is looking at signing more as a strategy to extend its reach without having to mount its own flights. The national carrier is now in discussion to have code-sharing arrangement with oneworld members, namely American Airlines, British Airways, Qantas and Finnair.  – Business Times

IJM Corporation Bhd (RM5.20/share)

Unit to sell 30% stake in CSC

IJM Corp Bhd’s wholly owned unit IJM Construction Sdn Bhd has entered into a sale of shares agreement with Singapore-listed CSC Holdings Ltd to dispose of a 30% equity stake in CSC Ground Engineering Sdn Bhd (CSCGE) for a total cash consideration of RM464,298.

CSCGE was a 70:30 joint venture formed between CSC Holdings and IJM construction in 2008. IJM said the consideration took into account the 30% share of the net assets of RM1.6mil of CSCGE as at Dec 31, 2011. The expected loss of disposal was RM290,681. – StarBiz

Kumpulan Perangsang Selangor Bhd (RM1.01/share)

Buys 40% of NGC Energy

Kumpulan Perangsang Selangor Bhd (KPSB), via its unit Perangsang Oil and Gas SdnBhd, is acquiring a 40% stake in NGC Energy Sdn Bhd for RM40.0mil, marking the group’s foray into the oil and gas (O&G) sector. Perangsang Oil and Gas yesterday entered into a subscription and shareholders’ agreement with NGC Consolidated Holdings Sdn Bhd and NGC Energy for an investment in a liquefied petroleum gas (LPG) business. Perangsang Oil and Gas director Suhaimi Kamaralzaman said the LPG business is expected to contribute 10% to KPSB’s profit from 2014, which is equivalent to RM7.0mil to RM8.0mil in dividends a year. He added that the acquisition will be financed via internal funds. NGC Energy, a newly-formed entity by Oman’s National Gas Co SAOG, recently acquired the LPG business from Shell Malaysia Trading Sdn Bhd, which is the second-largest LPG supplier in Peninsular Malaysia with more than 30 years of presence in the country. – The Sun

Berjaya Sports Toto Bhd (RM4.21/share)

S’pore first, then Sports Toto Trust plans secondary listing on Bursa M’sia

Sports Toto Malaysia Trust (STM Trust) will have a secondary listing on Bursa Malaysia following its planned listing in Singapore, according to a senior official of Berjaya Group Bhd. Freddie Pang Hock Cheng, who is executive director of Berjaya Group and Berjaya Sports Toto (BToto), said a listing would be sought in Malaysia upon the completion of a business trust listing framework in Malaysia. STM Trust, which is to be Singapore-based, is the trust that BToto intends to set up to house its Malaysian gaming business. It is understood that the Securities Commission and Bursa Malaysia are targeting a July deadline to issue guidelines on the listing of business trusts in Malaysia. Last week, BToto announced that it would transfer its entire equity interest in Sports Toto Malaysia Sdn Bhd (STM) which holds the lottery licence, to STM Trust in a deal valued at RM6bil. - StarBiz

Source: AmeSecurities