News Highlights - Sime Darby, Tenaga Nasioanl, DRB-Hicom, Construction Sector

Sime Darby Bhd (RM9.76/share)

Awaits Peru nod on oil palm plantation

Malaysian conglomerate Sime Darby Bhd is waiting for final approvals from the Peruvian government to start planting oil palm in the Latin American state. Foreign Minister Datuk Seri Anifah Aman said Peru has identified 70,000ha where Sime Darby could undertake the project. He said the company is expected to invest between US$150mil and US$300mil (RM467.4mil and RM934.9mil) in the venture.– Business Times

Tenaga Nasional Bhd (RM6.70/share)

TNB: No official word on Bangladesh job

Tenaga Nasional Bhd (TNB)  said it has not received any official word from the Bangladeshi government’s power division in relation to the latter’s selection of the company for the development of a 1,320-MW coal-powered plant in Maheshkali, Cox’s Bazar.

TNB clarified in an announcement to the stock exchange that it was invited to participate in the development of the plant on a joint-venture basis with the Bangladesh Power Development Board. – StarBiz

DRB-Hicom Bhd (RM2.42/share)

Will not exit Bank Muamalat

Conglomerate DRB-Hicom Bhd has no intention of divesting its entire 70% stake inBank Muamalat Malaysia Bhd as it still wants to be involved in the financial services industry, sources said. The group, which has other businesses such as automotive, energy and ports, will only pare its stake to a level that is acceptable by Bank Negara Malaysia (BNM).

The central bank in 2008 allowed DRB-HICOM to buy the 70% stake in Bank Muamalat on condition that it would eventually sell it down to 40%. The group, controlled by prominent businessman Tan Sri Syed Mokhtar Al-Bukhary, has twice attempted to pare its stake - to Bank Islam Malaysia Bhd last year and to Bahrainbased Islamic lender Al Baraka before that - but was unsuccessful.

Last month, BNM gave the green light to one of the country’s smaller banking groups, Affin Holdings Bhd, to talk to DRB-HICOM and Khazanah Nasional Bhd on a possible stake acquisition in the Islamic lender. This had got the market speculating as to whether DRB-HICOM would exit the bank entirely if offered a good price. Khazanah owns the other 30% stake in Bank Muamalat. – Business Times

Construction Sector

RM1.55bil MRT rolling stock award soon for Sungai Buloh-Kajang Line

MRT Corp is expected to award the rolling stock package for the first line of mass rapid transit (MRT) system, the Sungai Buloh-Kajang (SBK) Line, in a few weeks, said chief executive Datuk Azhar Abdul Hamid. He said they have evaluated the bids and are now preparing the report to be presented to the tender committee. Their budget for the rolling stock is about RM1.55bil. Azhar also said that the company that wins the award will be responsible for the building of 58 sets of four-car train.

On other work packages, Azhar said that almost all civil works packages had been awarded and the balance would be done in a couple of weeks. The remaining work packages include multi-storey carparks and system packages. It is inclusive of work packages for the train system, signalling, power supply, automated face control system, etc. - StarBiz

Source: AmeSecurities