Malaysia Daily Media Highlights

Khazanah to issue US$750m exchangeable bonds for TM shares
Malaysia’s state investment arm, Khazanah Nasional Bhd, will raise US$750m (RM2.8bn) from a landmark Islamic financial services centre. The bonds, which could be converted into shares of Telekom Malaysia Bhd, will be the world’s first Islamic exchangeable bond. It is also the largest-ever exchangeable paper to come out from Malaysia this year and the largest exchangeable instrument in Asia, excluding Japan, so far this ear. The issue’s initial size was US$500m (RM1.84bn) but it ended up being 1.5 times bigger. It will be issued via a special purpose company, Rafflesia Capital Ltd. “Demand was generated from quality investors from the Middle East and elsewhere, and include financial institutions, asset managers, insurance companies, pension funds, corporate and high net worth individuals”, Khazanah said.

Ramunia Takeover
Sime Darby Bhd is believed to be proceeding with a planned acquisition of an over 50% stake in Ramunia Holdings Bhd from the latter’s Chariman Datuk Azizul Rahman Abdul Samad, and a subsequent mandatory general offer for all the shares in the oil and gas fabricator.

Plans RM920m international bond issue
Ranhill Bhd plans to raise up to US$250m (RM920.5m) in international capital markets via a bond issue to fund the group’s capital investment and to refinance some of its borrowings. In a statement on Sept 27, its president and chief executive officer, Tan Sri Hamdan Mohamad said the proposed bond issue would also provide Ranhill access to a wider pool of investors. “This is in line with Ranhill’s business strategy to expand internationally,” he added. The papers will be issued to non-residents of Malaysia via a book-building process.

Bids for Vietnam highway job
Three local firms, including builder Bina Puri Holdings Bhd, are proposing to build and operate a toll highway in Vietnam. Bina Puri, which is linked to businessman Tan Sri Syed Mokhtar Al-Bukhary, has proposed its plans to the Government of Vietnam and it is currently in direct negotiations with the local authorities. “The concessionaire plans to build the highway and then collect toll over a 30-year period,” said the source.

Short-selling plan deferred to October
The planned reintroduction of short-selling, originally scheduled to take place tomorrow, has been deferred to next month. The reason for deferment was to make sure that the systems are running smoothly as well as to give stockbrokers more time to put their systems in order.