Sunway Bidding for Deals Worth US$5.7bn
Sunway Holdings is bidding for foreign and local contracts worth about US$5.7bn (RM20bn) as big spending plans by governments boost construction activity globally. Sunway’s past track record (for successful bids) is about 10%, which means over the next six to 12 months, it should be able to win at least RM2bn (worth of jobs). Sunway has submitted bids for construction jobs worth about RM1bn in India. The company, the seventh-largest builder in the country with market value of US$224m (RM785m), is also confident of obtaining repeat jobs within the US$25bn (RM87.75bn) Arzanah Development in Abu Dhabi. Sunway has been shortlisted to tender for Phase 2 which will be launched in the near future. (BT)
IJM Expects to Keep Orderbook Above RM4bn
IJM Corp, the country's second biggest construction company, expects to maintain an order book of more than RM4bn as it bids for sizeable government contracts locally and abroad. It aims to bid for infrastructure projects that will be rolled out under government stimulus packages in Asia. Governments around the world are spending more money to pull their economies out of recession. They would replenish the order book so that we maintain about RM4bn plus at any one time. (BT)
QL Resources Plans RM280m Expansion
QL Resources, Asia's biggest surimi producer, plans to spend RM280m over the next two years to expand its business, managing director Chia Song Kun said. It will use the money to build more deepsea boats, upgrade existing cold rooms and machinery, plant more oil palm trees and build a palm oil mill in Indonesia. They will allocate RM130m for 2010 and RM150m for 2011 for our business in poultry farming, planting of oil palms and deepsea fishing. It will also revive a plan to set up a poultry farm in Vietnam this financial year if economic conditions improve. The initial set-up cost will be between RM30m and RM40m. (BT)
Ajiya In Pact on Vietnam Safety Glass Venture
Ajiya has signed an initial pact with Viglacera Dapcau Sheet Glass Joint Stock Co (VDSG) to collaborate in the safety glass business in Vietnam. Ajiya through its unit, Ajiya Safety Glass SB and VDSG signed a memorandum of understanding yesterday and will jointly do a feasibility study on the safety glass processing and distribution business for the Vietnam market. The agreement however does not restrict both parties to do their existing activities in that country. (BT)
Axiata Not For Sale
Sources close to Khazanah Nasional Bhd say Axiata Group Bhd is a core asset for the government investment agency and not for sale. They said Khazanah want to keep its 44.5% stake in Axiata, which it (Axiata) deemed as a long-term investment for the agency. There is speculation in the market place that Khazanah, being the largest shareholder with 44.5% stake in Axiata, may hive off its stake in the regional mobile telecommunications company. It is said that a proposal for the stake purchase had been put forth to the Government and a businessman was keen to buy Khazanah’s stake in Axiata. (StarBiz)
Top Glove to Expand as Swine Flu Spreads
Top Glove Corp, the world's largest rubber glovemaker, plans to open new factories to help it meet growing demand as the swine flu pandemic spreads. Demand has grown by at least 10% over the past two months and moving forward they expect demand to continue picking up momentum, especially given the fact that swine flu has now extended to more countries. Next two additional factories will come into operation, bringing its total to 22. This should boost annual capacity of 32bn pieces of glove by 10%. (Financial Daily)
UM Land Ties Up with Tradewinds Johor
United Malayan Land (UM Land) has proposed a joint venture with Tradewinds Johor SB to govern Extreme Consolidated SB (ECSB), and to participate in a property development project in Kulai, Johor. UM Land proposed to purchase the remaining 49% of the total issued and paid-up share capital of ECSB in a call option agreement with Tradewinds Johor. And UM Land – through wholly-owned subsidiary ECSB – has proposed to acquire a piece of freehold 629.25-acre land in Kulai from Ambang Budi SB and Hartaplus Realty SB for RM233m cash upon the terms and conditions in the sale and purchase agreement dated Feb 12. UM Land will hold an EGM in respect of the proposed joint venture and acquisition on Sept 10 in Kuala Lumpur. (StarBiz)
Sources: OSK research
Sunway Holdings is bidding for foreign and local contracts worth about US$5.7bn (RM20bn) as big spending plans by governments boost construction activity globally. Sunway’s past track record (for successful bids) is about 10%, which means over the next six to 12 months, it should be able to win at least RM2bn (worth of jobs). Sunway has submitted bids for construction jobs worth about RM1bn in India. The company, the seventh-largest builder in the country with market value of US$224m (RM785m), is also confident of obtaining repeat jobs within the US$25bn (RM87.75bn) Arzanah Development in Abu Dhabi. Sunway has been shortlisted to tender for Phase 2 which will be launched in the near future. (BT)
IJM Expects to Keep Orderbook Above RM4bn
IJM Corp, the country's second biggest construction company, expects to maintain an order book of more than RM4bn as it bids for sizeable government contracts locally and abroad. It aims to bid for infrastructure projects that will be rolled out under government stimulus packages in Asia. Governments around the world are spending more money to pull their economies out of recession. They would replenish the order book so that we maintain about RM4bn plus at any one time. (BT)
QL Resources Plans RM280m Expansion
QL Resources, Asia's biggest surimi producer, plans to spend RM280m over the next two years to expand its business, managing director Chia Song Kun said. It will use the money to build more deepsea boats, upgrade existing cold rooms and machinery, plant more oil palm trees and build a palm oil mill in Indonesia. They will allocate RM130m for 2010 and RM150m for 2011 for our business in poultry farming, planting of oil palms and deepsea fishing. It will also revive a plan to set up a poultry farm in Vietnam this financial year if economic conditions improve. The initial set-up cost will be between RM30m and RM40m. (BT)
Ajiya In Pact on Vietnam Safety Glass Venture
Ajiya has signed an initial pact with Viglacera Dapcau Sheet Glass Joint Stock Co (VDSG) to collaborate in the safety glass business in Vietnam. Ajiya through its unit, Ajiya Safety Glass SB and VDSG signed a memorandum of understanding yesterday and will jointly do a feasibility study on the safety glass processing and distribution business for the Vietnam market. The agreement however does not restrict both parties to do their existing activities in that country. (BT)
Axiata Not For Sale
Sources close to Khazanah Nasional Bhd say Axiata Group Bhd is a core asset for the government investment agency and not for sale. They said Khazanah want to keep its 44.5% stake in Axiata, which it (Axiata) deemed as a long-term investment for the agency. There is speculation in the market place that Khazanah, being the largest shareholder with 44.5% stake in Axiata, may hive off its stake in the regional mobile telecommunications company. It is said that a proposal for the stake purchase had been put forth to the Government and a businessman was keen to buy Khazanah’s stake in Axiata. (StarBiz)
Top Glove to Expand as Swine Flu Spreads
Top Glove Corp, the world's largest rubber glovemaker, plans to open new factories to help it meet growing demand as the swine flu pandemic spreads. Demand has grown by at least 10% over the past two months and moving forward they expect demand to continue picking up momentum, especially given the fact that swine flu has now extended to more countries. Next two additional factories will come into operation, bringing its total to 22. This should boost annual capacity of 32bn pieces of glove by 10%. (Financial Daily)
UM Land Ties Up with Tradewinds Johor
United Malayan Land (UM Land) has proposed a joint venture with Tradewinds Johor SB to govern Extreme Consolidated SB (ECSB), and to participate in a property development project in Kulai, Johor. UM Land proposed to purchase the remaining 49% of the total issued and paid-up share capital of ECSB in a call option agreement with Tradewinds Johor. And UM Land – through wholly-owned subsidiary ECSB – has proposed to acquire a piece of freehold 629.25-acre land in Kulai from Ambang Budi SB and Hartaplus Realty SB for RM233m cash upon the terms and conditions in the sale and purchase agreement dated Feb 12. UM Land will hold an EGM in respect of the proposed joint venture and acquisition on Sept 10 in Kuala Lumpur. (StarBiz)
Sources: OSK research
