Malaysia Daily Media Highlights

Malakoff: Gets desalination project in Algeria
Malakoff’s wholly-owned subsidiary, Malakoff International Limited (MIL) and Spring Utility Limited (SUL), a wholly-owned subsidiary of Hyflux Ltd, Singapore had received a letter of award from the Algerian Energy Company to develop, construct and operate a seawater desalination plant of 200,000m3/day at Souk Tleta, Algeria. The company will be granted a 25-year concession to supply desalinated water to L’Algerienne Des Eaux, the state-owned national public water entity of Algeria and Sonatrach. The total construction period is anticipated to be 24 months from financial close with total project costs estimated at US$238m (or RM881m). It will be project financed by a group of Algerian local banks. Malakoff’s investment based on its 40.8% effective equity interest in the project is circa US$19.42m (or RM73.44m). (Bursa Malaysia)

Carlsberg Brewery Malaysia Joint Venture in Taiwan
Carlsberg Brewery Malaysia is acquiring a 50% stake in Carlsberg Distributors Taiwan Ltd (CDT) for a total of NTD26.17m (RM3.05m). Under a joint venture agreement with Wiseline Ltd, which is ultimately owned by Hong Kong-based Lei Shing Hong (HK) Ltd, Carlsberg acquired an initial 3m shares in CDT for NTD6.71m. Carlsberg and Wiseline will each subsequently subscribe for another 2m shares in CDT for NDT20m cash. Carlsberg’s substantial shareholder, Carlsberg Breweries AS, has a distributor agreement with CDT that allows the latter to sell Carlsberg brands and products manufactured by Carlsberg in Taiwan. (theedgedaily.com)

Sugar Bun Corp: Queried by BursaMalaysia Daily Media Highlights
Sugar Bun Corporation has been queried by Bursa Malaysia Securities over the sharp increase in price and high volume in its securities recently, requesting SUGAR to make an announcement for public release after making a due enquiry seeking the cause of the Unusual Market Action in the company’s securities. The food-chain operator had announced to BURSA last week that its unit Borneo Oil and Gas Corp S/B acquired Borneo Oil (Thailand) Ltd for RM15,000 which would be used as a vehicle to venture into the oil, gas and energy industry. On another issue, SUGAR is raising funds via a special issue of up to 30m new shares, or 27.5% of its enlarged paid-up share capital, to Bumuputera investors in line with the National Development Policy and a renounceable rights issue of up to 52.62m new warrants 2007/2012 on the basis of one warrant for every 3 shares after the special issue. (theedgedaily.com)

LCL: Extension of Project Value
Atlantis The Palm Project, undertaken by a one-off non-integrated joint venture (namely LCL Mice Kraftwork JV) between LCL Corporation’s associated company LCL Interiors LLC and Mice Kraftwork LLC worth Dirhams 92.9m has a variation work order of Dirhams 12.7m which has therefore increased the total contractual value to Dirhams 105.6m. (Bursa)

IOICORP: No plans to de-list the latter
IOI Corp has dismissed ongoing market talk that it pans to take its profit-making property unit private, IOI Properties. According to IOICORP, IOIPROP will launch a new 220ha township in Cyberjaya early new year. The company is also building a RM100m jewellery retail centre in Hyderabd, India, which is expected to be ready in 2-3 months. (BT)

Nissan/ETCM Vehicle: Sales down 13.5% in 3Q
Nissan/Edaran Tan Chong Motor S/B’s overall vehicles sales fell 13.5% to 4,756 units in 3Q06 from 5,496 units in the preceding quarter. Total sales for January to September fell 18.5% to 16,435 units compared with the 20,148 units sold in the previous corresponding period. Key models from the company’s stable of products, however, remain significant market leaders. The Sentra continues to dominate the non-national 1.6 litre (perol) passenger segments with 72% market share. Quoting the Malaysian Automative Association figures, the X-Trail lead the non-national 4x4 station wagon 2.0 – 2.5 litre (petrol) passenger with a 48% market share. The company’s second assembly line in Serendah, Selangor will start in 2Q07 with a single shift production capacity of 14,000 units up to a maximum of 54,000 units per annum. Two models will be assembled when production starts next year. (theedgedaily.com)

Atrium REIT gets SC Approval for listing
Atrium REIT Managers S/B has received the Securities Commission’s (SC) approval to list Atrium Real Estate Investment Trust (Atrium REIT). 4 industrial properties comprising 3 warehouses and a specially built office and factory complex with approved valuation of RM158.3m with a gross revenue of RM14m a year will be injected into Atrium REIT. The properties, which are leased to multinational companies, Exel, TNT, DHL and Unilever, have a net lettable area of 75,220 sq.m., and are located in Shah Alam, Puchong and Rawang. Distributable yield shall be above 7.4% per annum based on the offer price of RM1.05 per unit. The proposed listing of the Atrium REIT includes the issue of 121.8 units of which 60m units will be offered for sale to institutional investors through a book-building process. A total of 13.5m units have been set aside for public subscription while 2m units are allocated to directors, employees and business associates. The vendors, Glory Blitz Industries S/B and Sparkle Skyline S/B, will retain 21.1m and 25.2m units, respectively. Atrium REIT is targeted to be listed by January next year. (theedgedaily.com)

Thailand: Central Bank Lifts growth forecast
Bank of Thailand (BOT) raised the lower end of its GDP growth forecast for the year 2006 and 2007 to 4.5-5% and 4.5-5.5% respectively. The upward revision in forecast was prompted by surging exports and declining fuel costs. BOT Assistant Governor said the formation of new interim government has reduced political instability, bossting consumer and investor confidence.