News Highlights - Malaysian Resources Corportion, Building Materials Sector, Construction Sector

Malaysian Resources Corp Bhd (RM1.81/share)

Major MRCB-Nusa deal in the works?

A merchant bank has been shortlisted to help arrange a share swap deal between Malaysian Resources Corp Bhd (MRCB) and Nusa Gapurna Development Sdn Bhd. It is learnt that MRCB is studying the proposal by Nusa Gapurna to buy into the company in exchange for a 20% stake in the property and infrastructure group. Nusa Gapurna’s prime asset is the 16ha land behind PJ Hilton in Petaling Jaya, where the construction of PJ Sentral Garden City will start next year. The project developer is PJ Sentral Development Sdn Bhd, a 70:30 joint venture between Nusa Gapurna and Selangor Development Corp (PKNS).

Sources close to MRCB said it is interested in Nusa Gapurna because of the PJ Sentral project. He added that MRCB’s prime land bank is running low and KL Sentral is at the maturity stage. The land swapping is timely as the group seeks to expand. PJ Sentral will comprise nine blocks of office towers and residences, a hotel, and an office and retail podium. The project is estimated to fetch more than RM5bil in GDV over 15 years.  – Business Times

Building Materials Sector

All cement producers, except CMS, have raised prices

According to Master Builders Association Malaysia (MBAM) president Matthew Tee, local cement manufacturers have decided to raise their prices of the building material, mirroring the 6% hike by the country’s largest producer, Lafarge Malayan Cement Bhd.

However, this excludes Sarawak-based CMS Cement Sdn Bhd, which says it will maintain prices at the current level. MBAM secretary-general Chuan Yeong Ming also said that the quantum of increase varied with companies, while in terms of timeline, some had imposed it yesterday while the others would soon follow. Another industry source pointed out that while there has yet to be black and white to substantiate the new rates, ready-mix concrete firms had already jacked up prices in anticipation of more expensive cement. Meanwhile, the Malaysian Competition Commission (MyCC) said it had put the cement industry under its watchlist. – StarBiz

Construction Sector

MRT project moves into active construction phase

Mass Rapid  Transit Corp (MRT Corp) has announced that the country’s biggest infrastructure project, the Sungai Buloh-Kajang Mass Rapid  Transit Line is on schedule. MRT Corp director of strategic communications and public relations Amir Mahmood Razak said the project has moved from preparatory work to active construction phase. Since finalisation of the Sungai Buloh-Kajang alignment in July last year, planning, design and preparatory works for construction have been in full swing, he said. So far, 33 packages worth RM15.5bil have been awarded for the Sungai Buloh-Kajang Line 1 package. He said MRT Corp would announce by year-end new projects for the Sungai Buloh to Kajang Line 1, which would include train purchases, V8 viaduct and construction  of stations. The deadline for phase one operations of the Sungai Buloh-Kajang Line 1, which runs from Sungai Buloh to Semantan, is on December 2016. Amir said three companies two from China and one German firm have submitted tenders for supply of trains and the results will be known in a couple of weeks. – StarBiz 

Source: AmeSecurities