Malaysia Daily Media Highlights

TM: In talks to get fixed-line business deregulated
Telekom Malaysia Bhd (TM), is in talks with the Government about de-regulation of the fixed-line business so TM can have more flexibility in determining call rates and rental fees. Once the fixed-line business is deregulated, TM can move to lower its long-distance call rates and compete with the much lower rates offered on the Voice over Internet Protocol (VoIP) and by some mobile players. This will mean cheaper calls for subscribers in general. It could also mean that TM will be able to increase local call rates to offset lower long-distance call rates. The current arrangement does not give TM the flexibility to adjust call rates or to review phone rental fees, even though there is a ceiling rate for call charges. “The whole fixed-line business should be reviewed. The idea here is to deregulate the business and let the market forces dictate the rate that can be offered” said TM’s Malaysia business chief executive officer Zamzairani Mohd Isa. He said that the company is in constant talks with the Government and authorities on the matter. However, no official proposal has been made. (BT).

Genting: To get RM5.5bn bridging loan
Genting has secured loans of close to US$1.5bn (RM5.54bn) from five banks for its proposed Singapore casino project. Genting had announced on Oct 10 its joint bid with Star Cruises Ltd to spend more than US$3.1bn (RM11.64bn) to build the casino on Sentosa Island, competing with rivals Kerzner International Ltd and Eight Wonder. Genting hired Barclays Plc, Citigroup Inc, DBS Group Holdings Ltd, HSBC Holdings Plc and Royal Bank of Scotland Group Plc for a bridging loan for one year according to unconfirmed source. The five banks also provided GBP368m (RM2.52bn) in funding to help finance Genting’s acquisition of Stanley Leisure Plc, according to data compiled by Bloomberg. (theedgedaily.com)

SIME: Tipped to launch Ramunia bid soon
Sime Darby Bhd plans to launch a takeover offer for Ramunia Holdings as early as next week, bankers familiar with the matter said. Sime would buy out the controlling shareholder of Ramunia, Ramunia & Marine Corp Sdn Bhd (Remcorp), which holds 55.92 per cent of Ramunia. Under the deal, Sime will offer Remcorp RM161.82m or RM1.24 a share for every ordinary share it owns in Ramunia.

OYL: Daikin’s takeover offer now unconditional
Daikin of Japan has secured more than 50% of OYL shares and the mandatory takeover offer for the remaining shares has become unconditional. Billionaire Tan Sri Quek Leng Chan’s Hong Leong Secretarial Services and Liu Wan Min, who is the president and chief executive officer of OYL, sold their stakes of 40% and 5.2% respectively to Daikin for RM3.05bn and RM395.37m respectively, or RM5.73 per share. Upon their agreement becoming unconditional, Daikin would undertake a mandatory general offer (MGO) for the remaining 54.8% stake in OYL for a total of RM4.17bn. (theedgedaily.com)

THPLANT: Seeks RM250m to expand
TH Plantations, the plantation arm of Lembaga Tabung Haji, is expected to raise RM250m from a bond sale to finance its oil palm land expansion. TH Plantations plans to double its current landbank of about 16,000ha in three years. It also manages about 122,000ha of plantation land owned by Lembaga Tabung Haji. Bankers said part of the bond issue could be subscribed by Tabung Haji. This would be a two-prong strategy that would enable both parent and subsidiary to help each other. (BT).

LCL: Plans Main Board transfer to boost profile
LCL is planning a transfer to the Main Board within the next six months via a corporate exercise that could include a bonus issue and private placement, as part of the effort to enhance its corporate profile among investors. Its group managing director Low Chin Meng said LCL was unable to attract investors’ interests despite its growth potential as long as it remained on the Second Board. Low said LCL had met the financial requirements for a Main Board listing and was now planning the corporate exercise pursuant to the intended transfer. As at April 24, 2006, LCL’s paid up capital stood at RM40.49m. (theedgedaily.com)