DRB Hicom Bhd (RM2.37/share)
Gets 98.6% of Proton
DRB-Hicom Bhd has received acceptances of up to 98.66% as at 5pm yesterday for its takeover at Proton Holdings Bhd, whose shares will be suspended from May 4. With the acceptances, DRB-Hicom will invoke the provisions of Section 222 of the Capital Markets & Services Act 2007, within the next two months, to compulsorily acquire the remaining shares in Proton and delist it from Bursa Malaysia.
The offer to Proton shareholders remains open until May 9. The deadline was extended from April 25 to give more time for the remaining shareholder of Proton to consider parting with their shares. DRB-Hicom had previously indicated that it would not maintain Proton’s listing status if the acceptances exceeded 75%. – The Edge
Axiata Group Bhd (RM5.31/share)
Celcom withdraws appeal against RM590mil award
Celcom Axiata Bhd has withdrawn its appeal to the Court of Appeal against a decision involving the award of US$193.5mil (RM590mil) to DeTeAsia Holdings GmbH in a dispute during its privatisation in 2003. In a filing with Bursa Malaysia, Axiata Group said yesterday that Celcom withdrew its appeal with no order as to costs.
To recap, Celcom Axiata had appealed to the appellate court over a High Court decision which had earlier set aside its originating summon against DeTeAsia’s bid to enforce the international court decision. In 2005, the International Court of Arbitration of the International Chamber of Commerce ordered Celcom to pay US$193.5mil in principal sum and interest to DeTeAsia for breach of an agreement between Celcom and DeTeAsia.
The dispute between Celcom and DeTeAsia, which had an 8% stake in the telecommunications operator, arose leading up to the merger between Celcom and TM’s subsidiary TM Cellular Sdn Bhd in 2003. – StarBiz
Dialog Group Bhd (RM2.23/share)
PITSB to set up crude oil storage terminals
Pengerang Independent Terminals Sdn Bhd (PITSB) plans to set up dedicated terminals for crude oil storage under its second phase of expansion. Chairman Dr Ngau Boon Keat said the project would probably take place two years after the commercial operations of the company’s independent terminal start in 2014.
He said the dedicated terminals would cater to national and international oil companies and traders to store crude oil for refineries-related activities, adding that they will also conduct a feasibility study on whether there is demand for liquefied national gas (LNG) storage at the complex.
The RM5bil complex on 323.74ha site in Pengerang would provide storage, blending and distribution services for crude and clean petroleum products, he said. The complex’s petroleum storage facilities of about 1.3 million cu m could be further expanded by an additional 1 million cu m.
Dialog Group Bhd and Royal Vopak hold 51% and 49% equity respectively in a joint venture company, Pengerang Terminals Sdn Bhd, which owns 90% of PITSB. The Johor government, via its investment arm State Secretary Inc, holds the remaining 10% stake in PITSB. – StarBiz
Bumi Armada Bhd (RM4.22/share)
Ananda pares down stake
Tycoon Ananda Krishnan and his bumiputera partners will sell roughly 15% of offshore services provider Bumi Armada Bhd in private placements to local and foreign institutional investors in a deal that will raise close to RM2.0bil.
Financial executives involved in the placement told The Edge Financial Daily that the sale of roughly 440 million shares in Bumi Armada would cut the joint holdings of Ananda and his bumiputera partners to 55% in the company.
One financial executive said the deal will widen their shareholder base and raise a little money. He added that shares would be placed out at a discount of between 3% and 6% of the current trading price. Sales could be tweaked slightly upwards if there is strong response.
The planned placement, which will be finalised in the coming days, represents the latest in a series of asset sales involving units in Ananda’s diversified corporate empire. – The Edge
RHBCap-OSK merger believed to have received Bank Negara approval
The RHB Capital Bhd-OSK Holdings Bhd merger deal is believed to have received the nod from Bank Negara and is now awaiting approval at the Finance Ministry level, according to sources. Internally, RHB has set a target for the completion of the deal at the end of the third quarter.
Among the issues are those related to pricing; talk that CIMB is still interested in RHB, hence the rationale for RHB buying OSK; and that most department heads proposed for the investment bank are purportedly from OSK.
Also, this is regarded to be a complex deal that will see RHBCap’s reach extended to markets like Indonesia, Cambodia, Hong Kong and China. With RHB mostly in institutional business and OSK in the mid-sized and commercial sector, there appears to be little overlap between the two. - StarBiz