News - UMW Holdings : Buys rig for RM684.0mil

UMW Holdings Bhd (RM9.00/share)

Buys rig for RM684.0mil

UMW Holdings Bhd’s unit UMW Drilling 4 (L) Ltd (UMW D4) has signed a sale and purchase agreement with SD Drilling Pte Ltd to acquire a jack-up drilling rig for US$214mil (RM684.13mil). The company said in a statement that completion and delivery was expected early next year. UMW said the acquisition was part of its plan to further develop its drilling operations. It added that the rig, currently under construction, was being built by a reputable and established rig builder, and was of high design specifications to enable operations in more challenging environments. – Bernama

Building Materials Sector

Government to investigate import of steel wire rods from five countries, says Miti

The government will initiate a preliminary investigation on the import of steel wire rods from five countries, Chinese Taipei, China, Indonesia, South Korea and Turkey. In a statement yesterday, the Ministry of International Trade and Industry (MITI) said the government has determined that there was sufficient evidence of dumping, injury and a causal link. The investigation was initiated following a petition for the imposition of anti-dumping duty on imports of steel wire rods from a domestic producer. The petitioner alleged that steel wire rods originating from the said countries were being brought into Malaysia at a price much lower than that in their domestic markets. It was also claimed that this is causing material injury to the domestic industry. – The Edge

Consumer Sector

Parkson to open five new stores in Indonesia next year

Malaysian retailer, Parkson Retail Group’s managing director, Datuk Alfred Cheng, said it is investing US$15.0mil to open five new stores in Indonesia next year.  Cheng said the company was bullish on the Indonesian market as the political stability has provided a fantastic foundation for the growth of the private sector. Parkson has a total of 108 stores spread across Malaysia, China and Vietnam. In September 2013, Parkson will open its first store in Indonesia, which will be located at The St Moritz within the Puri CBD in West Jakarta. Cheng said Parkson’s retail chain in Indonesia contributed less than 3% of its total sales last year, while its stores in China contributed around 70% of the company’s revenue. He said Parkson would open a store in Cambodia in the second quarter of next year. Executive director, Toh Peng Koon, said the five new stores due to open next year would comprise one or two Parkson stores and three Centro outlets. - Bernama

Source: AmeSecurities