YLI Holdings Bhd, a pipe maker, said its proposal to take control of a rival is not expensive, considering that the latter has an exclusive long-term contract to supply a water distributor in Selangor.YLI announced a RM48 million deal to buy 51 per cent of Laksana Wibawa Sdn Bhd on Thursday and said this was a discount to what Laksana Wibawa is worth, based on the discounted cash flow calculation.However, it did not say why it was using the method to value Laksana Wibawa, neither did it mention that the company has a contract to supply Syarikat Bekalan Air Selangor Sdn Bhd, a subsidiary of Puncak Niaga Holdings Bhd."We have engaged an independent valuer. We have also done a due diligence and we have got legal adviser to go through the contracts. We have verified the information," Khor Song Sim, YLI's general manager of corporate services told Business Times.
Based on what was announced to Bursa Malaysia, the deal appeared to be expensive as YLI is paying a historical price to earnings multiple of 34 times, way above YLI's own valuation of about 11 times. Aseambankers Malaysia Bhd said it was surprised by the price tag and cut its target price for YLI's stock by 36 per cent to RM1.15."We are not positive on this acquisition, due to the pricing. Our main issue is the period of investment return for this new acquisition, as Laksana Wibawa's historical records are not compelling," the investment bank said in a report yesterday.However, its report was released before it had the chance to speak to YLI's management.Khor said Laksana Wibawa's exclusive contract with Syabas runs from 2006 to 2015. It will supply ductile iron pipes and mild steel pipes to Syabas.Laksana Wibawa is worth between RM102 million to RM133 million, based on calculations done by Kenanga Investment Bank Bhd."If it can fulfil demand from Syabas, it can make a lot of money," Khor said.Based on Laksana's accounts, it made a maiden net profit of RM2.8 million in 2007 since starting business in 2003. Over that period, its revenue has grown by almost 10 times to RM65.6 million.Apart from growing YLI's income, Khor said the deal allows the group to deal with competition.YLI would also help Laksana Wibawa to deal with the supply of ductile iron pipes as its facility has excess capacity. Laksana Wibawa is in the midst of building a ductile iron pipe factory."We can take up the slack and delay the factory a bit," Khor said. -www.btimes.com.my
Sunday, June 29, 2008
Syed Yusof buys Sutra Beach Resort
BUSINESSMAN Tan Sri Syed Yusof Syed Nasir has added another property to his hotel stable, buying the Sutra Beach Resort in Terengganu for RM20 million.Syed Yusof will purchase the hotel, located in Kg Rhu Tapai, Merang, from Dignity View Sdn Bhd and spend some RM6 million to convert it into a Casa del Mar or a Concorde brand.The purchase will be done via ISY Holdings Sdn Bhd, a company owned by Syed Yusof and Sultan of Selangor Sultan Sharafuddin Idris Shah."We plan to convert the 120 rooms and create a five-star Casa del Mar Terengganu or a four-star Concorde Beach Resort," Syed Yusof told Business Times.
The Casa del Mar hotel chain will be modelled after the successful Mediterranean-inspired maiden venture in Langkawi. Casa del Mar literally means "Home by the Sea" in Spanish.Concorde Kuala Lumpur, formerly the Merlin Hotel, on Jalan Sultan Ismail was Syed Yusof first hotel venture in 1990. He is also involved in Concorde Inn Sepang and Concorde Hotel Shah Alam."The Sutra Beach Resort has 5.06ha of land, of which 2.03ha has been developed. The remaining land will be allocated for the development of suites," he said.Once the renovation is done and should it be a Casa del Mar, Syed Yusof said he hopes to be able to increase the hotel's average room rate (ARR) to between RM300 and RM400 per night from about RM250 now."In Langkawi, our hotel enjoys a 90 per cent average occupancy and an ARR of RM500. We want to bring this new hotel to the level comparable with that in Langkawi," he said.Meanwhile, another boutique hotel called Casa del Rio or "Home by the River" is being built by ISY Holdings in Malacca.The company will also open the Hard Rock Hotel, Penang, previously the Casuarina Beach Resort, in early 2009 and has started the development of the Four Seasons Hotel and Service Apartment in Kuala Lumpur.-www.btimes.com.my
The Casa del Mar hotel chain will be modelled after the successful Mediterranean-inspired maiden venture in Langkawi. Casa del Mar literally means "Home by the Sea" in Spanish.Concorde Kuala Lumpur, formerly the Merlin Hotel, on Jalan Sultan Ismail was Syed Yusof first hotel venture in 1990. He is also involved in Concorde Inn Sepang and Concorde Hotel Shah Alam."The Sutra Beach Resort has 5.06ha of land, of which 2.03ha has been developed. The remaining land will be allocated for the development of suites," he said.Once the renovation is done and should it be a Casa del Mar, Syed Yusof said he hopes to be able to increase the hotel's average room rate (ARR) to between RM300 and RM400 per night from about RM250 now."In Langkawi, our hotel enjoys a 90 per cent average occupancy and an ARR of RM500. We want to bring this new hotel to the level comparable with that in Langkawi," he said.Meanwhile, another boutique hotel called Casa del Rio or "Home by the River" is being built by ISY Holdings in Malacca.The company will also open the Hard Rock Hotel, Penang, previously the Casuarina Beach Resort, in early 2009 and has started the development of the Four Seasons Hotel and Service Apartment in Kuala Lumpur.-www.btimes.com.my
Thursday, June 26, 2008
Malaysia Offers Opportunity For Auto Manufacturers Producing Hybrid Vehicles
KUALA LUMPUR, June 26 (Bernama) -Malaysia offers the opportunity for leading automotive companies particularly those producing hybrid vehicles to locate their operations in the country.The companies would be able to cater for the domestic and regional markets, International Trade and Industry Minister, Tan Sri Muhyddin Yassin said Thursday.He said high fuel cost has created demand for such vehicles in the region.The minister's speech was read by the ministry's deputy minister Datuk Jacob Dungau Sagan at the Frost & Sullivan Asean Automotive Awards 2008, here Thursday."Malaysia in fact is well placed to become the hub for hybrid vehicles in the region. I hope automotive assemblers will take advantage of this opportunity," he said.Given that the automotive industry is evolving at such a dynamic pace, he said Malaysia is also paying attention to capacity building and is continuously developing the capabilities of small and medium scale enterprises (SMEs) producing automotive parts and components to ensure these companies remain competitive.Among the programmes undertaken have been the familiarising of SMEs with Lean Production System relating to quality control and improvement, reducing waste, inventory management, control improvements and reduction of rejection rate and in producing upgrading processes.Others have been upgrading the skills of those involved in the automotive industry and enhancing SME capabilities in mould and die designing as well as manufacturing.Under the Ninth Malaysia Plan, the ministry through SMIDEC has provided assistance to SMEs in the automotive sector under various Matching Grant Schemes.As at May 30 this year, SMIDEC approved a total of 612 applications amounting to RM18.35 million, he said.Going forward, he said spiraling energy prices will remain one of the main challenges of the automotive industry.Higher fuel costs also means that consumers will look to fuel efficient vehicles and perhaps vehicles using alternative energy.To meet these demands, continued investment in research and development will be necessary, he added.
Thursday, June 19, 2008
Broadband set to be TM's largest revenue contributor
SINGAPORE: Telekom Malaysia Bhd (TM) said broadband business could become the group's largest revenue contributor in three years, as demand for Internet and related services increases.As of first quarter 2008, TM's retail revenue was RM1.61 billion, of which 31 per cent came from its Internet and data services. Voice call services accounted for the bulk or 57 per cent.This compared with a 63 per cent contribution from voice and 27 per cent from Internet and data sales a year ago."We believe broadband business will contribute 60 per cent of the retail revenue in three years, overtaking voice.
"There're two main reasons for that. First, the migration of fixed voice to mobile. Second, we see the trend of Internet becoming more of a necessity rather than a luxury service for Malaysians," said TM group chief executive officer Datuk Zamzamzairani Isa in an interview here on Wednesday.The company also plans to launch its Internet Protocol Television (IPTV) services in the second quarter of 2009, which is expected to boost TM's revenue.Meanwhile, TM expects to sign up more new broadband customers this year, as compared with 2007 when it signed up 401,000 new customers.It believes that its broadband subscriber base could expand by at least 35 per cent this year."Initial signs have been very encouraging. In April, we signed up 43,000 new broadband customers, which was a record for us. May was another strong month where we signed up some 40,000 new customers," Zamzamzairani said.On the RM15.2 billion national high-speed broadband project, TM is considering its funding options.The project comes in two phases. First phase, in which most of the job will be done in the initial three years, involves around RM11.3 billion, of which TM will fund RM8.9 billion."We are finalising the details," Zamzamzairani said.TM and the Government are expected to sign a public-private partnership agreement by the end of this month."We are hopeful that it will materialise this month. But even if it doesn't happen this month, it won't be too far away," Zamzamzairani added. -www.btimes.com.my
"There're two main reasons for that. First, the migration of fixed voice to mobile. Second, we see the trend of Internet becoming more of a necessity rather than a luxury service for Malaysians," said TM group chief executive officer Datuk Zamzamzairani Isa in an interview here on Wednesday.The company also plans to launch its Internet Protocol Television (IPTV) services in the second quarter of 2009, which is expected to boost TM's revenue.Meanwhile, TM expects to sign up more new broadband customers this year, as compared with 2007 when it signed up 401,000 new customers.It believes that its broadband subscriber base could expand by at least 35 per cent this year."Initial signs have been very encouraging. In April, we signed up 43,000 new broadband customers, which was a record for us. May was another strong month where we signed up some 40,000 new customers," Zamzamzairani said.On the RM15.2 billion national high-speed broadband project, TM is considering its funding options.The project comes in two phases. First phase, in which most of the job will be done in the initial three years, involves around RM11.3 billion, of which TM will fund RM8.9 billion."We are finalising the details," Zamzamzairani said.TM and the Government are expected to sign a public-private partnership agreement by the end of this month."We are hopeful that it will materialise this month. But even if it doesn't happen this month, it won't be too far away," Zamzamzairani added. -www.btimes.com.my
Wednesday, June 18, 2008
RM1b biotech investments
SAN DIEGO: Malaysia is poised to receive investments in biotechnology projects worth RM1 billion over the period 2008-2011 as a result of deals that will be signed during a world-class event this week."These (amounts) are the kinds of benchmarks that we have for events like BIO 2008," Malaysian Biotechnology Corp (BiotechCorp) chief executive Datuk Iskandar Mizal Mahmood told Malaysian journalists here on Tuesday.Six agreements will be signed this week on the sidelines of the world's biggest biotechnology conference, dubbed BIO 2008.Iskandar said that more details will be revealed during the signings, adding that they involve areas like healthcare, agriculture and industrial biotechnology.
Malaysia wants to win a slice of the booming and lucrative biotechnology industry, estimated to be worth billions of dollars. Revenue from biotechnology firms in Asia-Pacific alone was US$36.7 billion (RM119 billion) in 2006.Iskandar is leading BiotechCorp, the agency tasked to develop Malaysia's biotechnology industry, at its fourth BIO event. There are about 82 Malaysian delegates this year, led by Science, Technology and Innovation Minister Datuk Dr Maximus J. Ongkili."We are looking for anything that's new, whether in terms of technology or practice," Ongkili told reporters after opening BiotechCorp's exhibition booth.However, Malaysia's core focus are alternative energy and boosting agriculture production.One example is mapping the complete genetic information of the jatropha plant, Ongkili said. This could lead to a better-yielding and more pest-resistant jatropha, which is used to make biofuel, apart from palm oil and corn.The minister is also conducting about 12 one-on-one meetings throughout the four-day event that ends tomorrow."We are zeroing in on the list of potential investors," he said.BIO 2008, which is bringing together more than 20,000 visitors from 70 countries, features about 2,200 leading biotechnology companies worldwide. -www.btimes.com.my
Malaysia wants to win a slice of the booming and lucrative biotechnology industry, estimated to be worth billions of dollars. Revenue from biotechnology firms in Asia-Pacific alone was US$36.7 billion (RM119 billion) in 2006.Iskandar is leading BiotechCorp, the agency tasked to develop Malaysia's biotechnology industry, at its fourth BIO event. There are about 82 Malaysian delegates this year, led by Science, Technology and Innovation Minister Datuk Dr Maximus J. Ongkili."We are looking for anything that's new, whether in terms of technology or practice," Ongkili told reporters after opening BiotechCorp's exhibition booth.However, Malaysia's core focus are alternative energy and boosting agriculture production.One example is mapping the complete genetic information of the jatropha plant, Ongkili said. This could lead to a better-yielding and more pest-resistant jatropha, which is used to make biofuel, apart from palm oil and corn.The minister is also conducting about 12 one-on-one meetings throughout the four-day event that ends tomorrow."We are zeroing in on the list of potential investors," he said.BIO 2008, which is bringing together more than 20,000 visitors from 70 countries, features about 2,200 leading biotechnology companies worldwide. -www.btimes.com.my
Tuesday, June 17, 2008
Iran opposes any Saudi unilateral oil output hike
Iran said on Tuesday it would be opposed to any move by OPEC kingpin Saudi Arabia to raise its oil output without a consensus from fellow members of the oil cartel.
"If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.
UN chief Ban Ki-moon announced on Sunday that Saudi Arabia had told him it would increase its oil output by a further 200,000 barrels a day in July, although it was not clear if Khatibi was reacting to these comments.
Saudi Arabia is also organising talks among major oil producers and consumers in the Red Sea city of Jeddah next week to discuss the current sky-rocketing prices.
Iran is OPEC's number two producer, behind the Saudis, and has consistently argued that the high oil price has nothing to do with market fundamentals and OPEC's output should not be increased.
"Any increase in production should be approved in the meeting of the organisation's ministers," Khatibi stressed.
Iran's OPEC representative also said there was no shortage in the oil market: "Oil producers are all agreed that the oil market is saturated," he said.
"Evidence shows that consumers will discuss the increase of oil production more than other issues in this (Jeddah) meeting. This is while the producers believe that there is no shortage in the market," he said.
The National Iranian Oil Company's director for international affairs, Hojatollah Ghanimifar, said any boost to output would have little impact on world prices.
"In the current situation even an increase of 500,000 barrels of oil will not make any change in oil prices," Ghanimifar was quoted as saying by the state television website.
Oil futures reached record highs of almost 140 dollars a barrel on Monday.
In Asian trade on Tuesday, the main New York futures contract, light sweet crude for July delivery, dropped 15 cents to 134.46 dollars per barrel after striking an intraday record of 139.89 dollars on the New York Mercantile Exchange.
Earlier on Tuesday, Iranian President Mahmoud Ahmadinejad said that the current high price of oil was artificial and the market was well supplied.
"The rise in consumption is lower than the rise in production," Ahmadinejad told a meeting in the central city of Isfahan of OPEC's fund for international development.
"Certain hands, for political and economic ends, are controlling the price in an artificial manner," he said.-Copyright Agence France-Presse, 2008
"If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.
UN chief Ban Ki-moon announced on Sunday that Saudi Arabia had told him it would increase its oil output by a further 200,000 barrels a day in July, although it was not clear if Khatibi was reacting to these comments.
Saudi Arabia is also organising talks among major oil producers and consumers in the Red Sea city of Jeddah next week to discuss the current sky-rocketing prices.
Iran is OPEC's number two producer, behind the Saudis, and has consistently argued that the high oil price has nothing to do with market fundamentals and OPEC's output should not be increased.
"Any increase in production should be approved in the meeting of the organisation's ministers," Khatibi stressed.
Iran's OPEC representative also said there was no shortage in the oil market: "Oil producers are all agreed that the oil market is saturated," he said.
"Evidence shows that consumers will discuss the increase of oil production more than other issues in this (Jeddah) meeting. This is while the producers believe that there is no shortage in the market," he said.
The National Iranian Oil Company's director for international affairs, Hojatollah Ghanimifar, said any boost to output would have little impact on world prices.
"In the current situation even an increase of 500,000 barrels of oil will not make any change in oil prices," Ghanimifar was quoted as saying by the state television website.
Oil futures reached record highs of almost 140 dollars a barrel on Monday.
In Asian trade on Tuesday, the main New York futures contract, light sweet crude for July delivery, dropped 15 cents to 134.46 dollars per barrel after striking an intraday record of 139.89 dollars on the New York Mercantile Exchange.
Earlier on Tuesday, Iranian President Mahmoud Ahmadinejad said that the current high price of oil was artificial and the market was well supplied.
"The rise in consumption is lower than the rise in production," Ahmadinejad told a meeting in the central city of Isfahan of OPEC's fund for international development.
"Certain hands, for political and economic ends, are controlling the price in an artificial manner," he said.-Copyright Agence France-Presse, 2008
Subscribe to:
Posts (Atom)
