Malaysia Daily Media Highlight

TELCO Sector: WIMAX to be delayed to 2007
The arrival of high-speed wireless broadband, or WiMAX, has been delayed to next year as regulators said they need time to seek new clarification from those who are bidding to become service providers. The result of the tender had been expected to be announced this year. Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said companies that have submitted applications to include a national rollout plan. The minister said the Government is not in a rush to roll out WiMAX services as WiMAX licenses, what the possibility of launching 2 licenses during the initial stage before releasing the remaining ones. 17 companies bid for the licenses, including Maxis Communications, DiGi, REDtone, MiTV and Nasion Com.

DRB-Hicom/Proton: Confirms interest in the latter’s stake
DRB-Hicom has recently submitted a proposal to the government indication its preliminary interest in the possibility and prospects of acquiring a portion of shares in Proton Holdings. Prime Minister Datuk Seri Abdullah Ahmad Badawi had said on that the government was considering giving approval for German carmaker Volkswagen AG to take up a 51% controlling stake in Proton’s manufacturing operations. (theedgedaily.com)

SCOMI: To be taken private?
Speculation is rife that major shareholders Scomi Group may take the integrated oil services firm private in a bid worth as much as RM1bn. Sources said the main shareholders, who include the son of Prime Minister Datuk Seri Abdullah Ahama Badawi, are considering this as an option as SCOMI’s market price does not reflect its true value. Citing swirling market speculation, bankers said the major shareholders could bid for the rest of SCOMI at a price range of RM1.20 to RM1.50 a share. At RM1.50, SCOMI would be valued at some RM1.5bn. The major shareholders of Scomi are Kamaludin and Shah Hakim. Both hold 34.66% of the company through Kaspadu Sdn Bhd as at May 11, 2006. Frence insurance group AXA is the second biggest shareholder with 6.3%, followed by the Employees Provident Fund with 5.73%. this means that if the main shareholders were to make a bid for the rest of the shares, they might have to fork out some RM976.6m based on an offer of RM1.50 a share. (BT)

PETRA: 67m new shares to list on Nov 15
Petra Perdana’s 67.65m new 50 sen shares arising from its bonus issue will be granted listing and quotation on Nov 15. A Bursa Securities circular said the new shares arose from the bonus issue of 1 new share for every 3 existing shares held. The new bonus shares will increase the paid-up capital by 270.6m to 338.25million shares. (theedgedaily.com)

Boon Koon Group: To fund growth with RM100m Islamic debt
Boon Koon Group is looking to use part of its RM100m Islamic debt securities for its Indonesian operations, acquisitions and the setting up of a Dubai plant, which will allow it to expand its used commercial vehicle business including sales and services centres into other cities in Indonesia, aside from Jakarta, Semarang, Surabaya and Medan to consolidate its position there. It is also looking to set up a reconditioning hub in dubai to tap into the India and, possibly Pakistan market over the next 1-2 years. A company has been engaged to explore the market there. It is also in the process of shifting its factory in Tawau to Kota Kinabalu, involving a capex of RM5m and is expected to be completed by 2Q07. The acquisition of GKY Machinery, which is involved in the rebuilding and distribution of heavy machinery and equipment, is expected to be completed by 1Q07. About 10% of the proceeds from the Islamic debt securities will be used to fund the GKY buy and another 5% - 10% for its fleet expansion. (theedgedaily.com)

MAS: Signs agreement with Russia’s Transaero Airlines
Malaysia Airlines System has signed an agreement with Russia’s Transaero Airlines to operate direct air services between Kuala Lumpur and Moscow from January 2007 through a code share arrangement. The partnership would initially offer 8 scheduled flights from Jan 02, 2007 to March 17, 2007 between Moscow Domodedovo Airport and KLIA using a Boeing 767-300 aircraft, with plans to increase the number of flights. MAS would have direct access to the seat inventory of all Transaero flights between KLIA and Moscow, which would be marketed using MAS flight numbers MH9055 and MH9056. (theedgedaily.com)

MINETEC: Clinches quarry jobs in Indonesia
Minetech Resources’ via its unit KS Chin Minerals Sdn Bhd (KSC) has expanded its operations into Indonesia after it was appointed as the operator and contractor of a quarry in Karimum Island, Indonesia. It has entered into several agreements with Batu Ayer Granite Pte Ltd (BAG) and PT Mirasindo Perdana (PTM) appointing KSC as the operator and contractor with management rights to manage, supervise and/or undertake all quarry operations. Under the deal, KSC would also acquire all quarry products as well as acquire a crusher plant and other quarry equipment from BAG/PTM for RM10.5m. (Bursa)

AIRASIA: Teams up with Fly Asian Xpress
AirAsia has formed a strategic partnership with rural air services (RAS) operator Fly Asian Xpress (FAX) in an effort to provide seamless air travel nationwide. The partnership will see AIRASIA include air routes served by FAX in its list of destinations, thus allowing both airlines to interline operations as well as automatically expand their respective air service network. The move will also allow FAX to leverage on AIRASIA’s massive sales distribution network, including its website. AIRASIA will introduce its Kuala Lumpur – Mulu and Kuala Lumpur – Lahad Datu Flights, which will begin operations on December 01. (BT)