Wednesday 11 July 2012

News Highlights - Telekom Malaysia,Jaya Tiasa Holdings,Malaysian Airline System ,Aviation Sector


Telekom Malaysia Bhd (RM5.68/share)
TM: Broadband market big enough for all
Telekom Malaysia Bhd’s (TM) customer base for its Unifi services has swelled to 393,000. But, with impending competition from the cellular players that are entering its home services turf, its lion market share of high-speed Internet broadband will come under pressure soon.
TM executive vice president of TM Consumer Imri Mokhtar said they will be affected by competition and expect 10% to 20% of share going to other players in the medium to long term. However, he also feels the market is big enough for all and this is evident from the “high take-up rate for TM’s Unifi services.’’ TM’s internal target is to have 400,000 Unifi subscribers by year-end. – StarBiz

Jaya Tiasa Holdings Bhd (RM9.02/share)
Selling shares worth RM330m
Jaya Tiasa Holdings Bhd, a palm oil plantations and timber company, is selling up to 42 million new shares worth around RM330.0mil, according to a source familiar with the deal.
The shares are being priced at a range between RM7.70 and RM8.20 per share, the source said, representing a 9.1% to 14.6% discount to the closing price of RM9.02 yesterday.
The proceeds raised from the placement are meant for the repayment of bank borrowings, palm oil mills construction, working capital and acquisitions, according to the source. – Business Times

Malaysian Airline System Bhd (RM1.11/share)
Mulls ordering Airbus A330
Malaysian Airline System Bhd’s (MAS) chief executive officer Ahmad Jauhari Yahya said it will accelerate the exit of Boeing Co wide-body jets from its fleet and look at ordering the upgraded A330 model announced by Airbus SAS. The carrier’s nine remaining Boeing 747 jumbos are likely to be stood down by the end of November rather than in March as planned earlier, while its 777-200s will be gone within three years. MAS will standardize its twin-aisle fleet on Airbus’ A380 and the smaller A330, with an upgraded version of the latter having sufficient range for a network where the longest route – Kuala Lumpur–London – is only 12.5 flying hours. The carrier has 15 A330s on order, about half of which have been delivered and options for 10 more which could be converted as upgraded models. – StarBiz

Aviation Sector
AirAsia-MAHB spat over KLIA2 continues
AirAsia is on Malaysia Airports Holdings Bhd’s (MAHB) throat again with the same issue - the development of new low-cost carrier terminal, KLIA2. AirAsia chief executive officer Tan Sri Tony Fernandes is still adamant that the cost of the airport will increase to RM5.0bil, without the cost of the ERL or the privatised projects that have been handed out. Fernandes also said that AirAsia has strongly objected to the relocation of the new low-cost carrier terminal to KLIA West due to its poor soil conditions where costly, time-consuming engineering works must be carried out before constructions. He said the warnings are explicitly stated in the 1992 KLIA Master Plan. AirAsia claimed that it has pointed out to MAHB earlier that moving KLIA2 would increase construction costs to RM3.9bil at least, from the original RM1.9bil, said Fernandes.  – Business Times

Source: AmeSecurities 

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