Malaysia Daily Media Highlights

F&N: Buy Nestle’s Liquid Milk for RM310m
Fraser & Neave Holdings Bhd (F&N) will fork out about RM310mil to buy Nestleˇs liquid milk business and, in the process, double F&N groupˇs dairies operations and expand its regional footprint. “The deal would increase the dairies divisionˇs annual turnover to over RM1.5bil from RM600mil now”, said Tan Ang Meng, chief executive officer of F&N.At present, Nestle has leading positions in the condensed, evaporated and sterilised milk markets in Thailand via the Carnation, Milkmaid and Bear brands. As part of the deal, these brands will be licensed to F&N, which will also acquire relevant Nestle production facilities and equipment in Thailand.

IJM: Awarded contract worth RM717m
IJM Corporation’s unit, IJM Construction S/B was awarded two contracts worth RM717m from Talam Corporation to complete the remaining construction works for several development projects in the area such as Taman Puncak Jalil, Putra Perdana, Ukay Perdana, Kinrara Section 3, Bukit Berunting and Lagoon Perdana for a period of 36 months. The award of the contracts has been pursuant to the settlement agreements reached by TALAM for the outstanding amount of the Al-Bai Bithaman Ajil Islamic Debt Securities of RM528.87m and Murabah Notes Issuance Facility of RM196m respectively, as announced on 6 October 2006 and 11 October 2006. (Brusa)

Puncak: Windfall for shareholders
Puncak Niaga Holdings plans to reward shareholders with up to RM767.8million, or 65 sen cash a share, under a capital distribution to improve its capital structure and shareholders’ value. It has also proposed a 1-for-1 bonus issue of up to 590.6m payout, Puncak Niaga plans to sell RM320m worth of inter-company advances for RM419m via preference shares and cash. It also plans to sell a 17.5% stake in subsidiary Puncak Niaga (M) S/B for RM306m to Arena Tekad S/B. Both deals would raise some RM439m for Puncak Niaga. The proposals still need the approval of regulators and shareholders. (BT)

TECFAST: 25% stake acquired by London’s Trifast Plc
Techfast Holdings’s 25% stake or 38m shares have been acquired by Trifast Plc, which is listed on the London Stock Exchange for RM19m cash. The vendors area Tecfast’s chairman and managing director Yap Yoon Sing, executive directors Lim Tock Ooi and Fong Kong Leong and substantial shareholder Chin Chee Heun. The vendors said assuming the completion of the sale and purchase agreement and based on the vendor’s shareholding as at Oct 13, 2006, Yap’s shareholding in Techfast would be reduced to 10.97% or 16.67m shares after selling 14.80m shares or 9.74% equity. Lim’s stake would decrease to 5.63% (8.55m shares) from 12.07% (18.35m) and Fong’s to 7.21 (10.96m shares) from 14.05% (21.36m shares). Chin’s stake would be reduced to 5.71% or 8.68m shares from 7.68% or 11.68m shares. (theedgedaily.com)

GHOPE: In JV with China’s detergent company
Golden Hope Overseas Capital (GHOC) has signed a JV agreement with Cognis Oleochemicals (HK) Ltd and China’s Lonkey Industrial Co Ltd to establish, Guangzhoe Keylink Chemical Co Ltd. The new company will manufacture, distribute and sell methyl ester sulphonates (MES), an oleochemical derivative used in the production of detergent. GHOC is a subsidiary of Golden Hope International Investments, which is wholly owned by Golgen Hope Plantations. Under the agreement, Lonkey will hold 49% of equity in the JV company with 36% under GHOPE and the remaining 15% under Cognis. Guangzhou Keylink will be responsible for building, developing and operating a plant to be built in Guangzhou to manufacture MES. (Bernama)

Genting: Unveils details of Singapore Casino Bid
The Genting group plans to re-invest more than S$200m (RM465.13m) annually in its proposed RM11.62bn integrated resort on Singapore’s Sentosa Island. Genting International plc and Star Cruises Ltd have unveiled details of the consortium’s world-class Resort World at Sentosa, which will hold 4 world-class gated attractions. They are Universal Studios Singapore, Quest Marine Life, Equarius Water Park and the Xperiential Maritime Museum, which will be developed by Univeral Studios, Dolphin Quest, Forrec Ltd and Ralph Appelbaum Associates, respectively. The resort will also boast 6 hotels with 1,830 hotel rooms, which include the exclusive ESPA Villas, the Hotel Michael boutique hotel designed by famed US architect Michael Graves and the Hard Rock Hotel. It will also have a Festivewalk promenade and the Bull Ring entertainment centre. The resort would also be home to the largest collection of flagship concept stores that include Nike, Cartier, Massimo Dutti and Hamley’s first toy store outside of Europe. The resort will have a soft launch planned for end-2009 with its official opening slated for early 2010. (theedgedaily.com)