TM Buy P1

27 Jamadil Awal 1435

TELEKOM Malaysia Bhd (TM) is poised to go big in “superfast” fourth generation (4G) broadband services once it concludes the deal to buy 57 per cent of Packet One Networks Sdn Bhd (P1)
30MHz in the 2.3 Gigahertz (GHz) band (currently utilised for its Worldwide Interoperability for Microwave Access, or WiMAX, rollout)for RM350 million.

Analysts pointed out that P1 is a high-speed Internet network infrastructure provider now migrating to LTE (Long Term Evolution), which is a globally accepted 4G wireless standard.

It has 449,000 broadband subscribers, 1,908 sites and more importantly, a 20 megahertz (MHz) Time Division Duplex (TDD) block in the 2.6GHz  spectrum band (core band for 4G in Malaysia) and

WiMAX is standard network technology supporting long-distance wireless broadband.

TM is in the midst of migrating its CDMA (Code Division Multiple Access) technology to 4G LTE.

Read more: TM gains control of P1 - Today's Paper - New Straits Times http://www.nst.com.my/business/todayspaper/tm-gains-control-of-p1-1.535856#ixzz2xKAvLYvY

OSK takeover offer not fair, says Affin

6 Syawal 1434

KUALA LUMPUR: Tan Sri Ong Leong Huat has suffered a setback in his bid to take OSK Holdings Bhd private after his offer was described as “not fair” and “not reasonable” by the independent adviser for the corporate exercise.

 Affin Investment Bank Bhd said the offer price for OSK shares is “not fair” as it is below the fair value of the company.

Affin had based the fair value of OSK shares using the revised net asset value (RNAV) concept.

OSK is estimated to have a RNAV of between RM1.88 and RM2.15 per share.

The net asset per share of OSK, meanwhile, stands at RM2.57 a share, meaning that the offer price by Ong is based on an implied priceto-book ratio (PBR) of 0.65 times.

 “This is lower than the lowest unaudited PBR of comparable companies of 1.0 times and also lower than the average unaudited PBR of comparable companies of 1.57 times,” Affin said in a statement to OSK shareholders.

To recap, Ong is seeking to take OSK private through OSK Equity Holdings Sdn Bhd, which after a series of corporate deals, has a stake in OSK above the 33 per cent cut-off point.

OSK Equity is 99 per cent controlled by Ong, who is also the managing director of OSK.A party that breaches the 33 per cent cut-off point in ownership is required by law to make a mandatory offer for the shares it does not already own.

Read more: OSK takeover offer not fair, says Affin at BTimes

UMC completes Silterra stress test

6 Ramadhan 1434

TAIWAN’S United Microelectronics Corp (UMC), the world’s No. 3 contract chipmaker, has completed a stress test on Silterra Malaysia Sdn Bhd, people familiar with the matter said yesterday.

It is understood that two other potential buyers from China are waiting in the wings to take over the Malaysian chipmaker in the event the UMC deal does not go through.

Silterra, the country’s first chip fabrication company, is 98 per cent-owned by government investment holding arm Khazanah Nasional Bhd.

Business Times understands that UMC has completed due diligence on Silterra, raising expectations in the marketplace that Khazanah may off-load the chipmaker.

Khazanah has sold 55 assets worth RM35.7 billion from 2004 until last year. Chief among its sale of strategically important companies are Proton Holdings Bhd and Pos Malaysia Bhd.

Silterra, which lists itself as a project of national interest, has failed to meet profit targets as well as a listing on the New York-based Nasdaq in the second quarter of 2002.

Outside Malaysia, Silterra is highly regarded with the company being ranked No. 15 (based on revenue) in the global ranking ofleading pure-play foundries.

Silterra serves the mature tech segment of the market, valued globally at US$30 billion (RM97.25 billion) per year.

This has helped Silterra rake in profits of about RM50 million a year over the past five years, though legacy issues have capped its potential.

Silterra had cumulative losses totalling RM7.3 billion for 10 years up to 2011, putting pressure on its stakeholders to pump in more capital into the company.

Read more: UMC completes Silterra stress test http://www.btimes.com.my/Current_News/BTIMES/articles/20130812232059/Article/index_html#ixzz2bnqhc500

S&P Ratings On MISC, Petronas Not Affected By Proposed Takeover

3  Rabiulakhir 1434

KUALA LUMPUR, Feb 13 , 2013 - Standard & Poor's Rating Services (S&P) said its ratings on MISC Bhd and Petronas will not be affected by Petronas' proposed conditional takeover of the shipping corporation.

It said the proposed transaction supported its assessment of MISC's strategic importance to its parent company, Petronas.

"In addition, the transaction is unlikely to have any effect on Petronas' financial risk profile," it said in a statement.

Petronas currently owned about 63 per cent of MISC.

The rating on MISC incorporated a three-notch uplift from the company's stand-alone credit profile of 'bb' to reflect strong business and financial support from Petronas.

"As a majority-owned subsidiary, MISC is already consolidated in Petronas' accounts.

"We believe that Petronas has sufficient financial resources to complete the takeover.

"Petronas' financial risk profile is "minimal" and its liquidity is "strong", as our criteria defines these terms," it added.

Recently, Petronas proposed to take MISC private with a cash offer of RM5.30 per share for what it does not already own.

More information: BERNAMA

Syed Mokhtar Firms Make RM347m. Offer for Tradewinds

29 Syawal 1433

KUALA LUMPUR: Hotel and property specialist Tradewinds Corp Bhd (TCB) has received a RM347 million takeover offer from its largest shareholder Perspective Lane (M) Sdn Bhd and two sister companies.

Perspective Lane, Kelana Ventures Sdn Bhd and Seaport Terminal (Johore) Sdn Bhd, all controlled by Tan Sri Syed Mokhtar AlBukhary, plan to privatise TCB via a selective capital reduction (SCR) and repayment exercise.

TCB yesterday said Perspective Lane will cancel one TCB share held by other shareholders not linked to it and the other two offerors.

They will pay RM1.10 for every cancelled share, TCB said in a statement to Bursa Malaysia yesterday.

The SCR of 347 million shares will reduce TCB's issued and paid-up capital from 1.11 billion shares to 759.03 million shares.

Read more: Syed Mokhtar firms make RM347m offer for Tradewinds http://www.btimes.com.my/Current_News/BTIMES/articles/20120914230940/Article/index_html#ixzz26g007KEl

KL Hosts Regional Discussion On Takeover Developments

19 Jamadilakhir 1433

KUALA LUMPUR, May 10 , 2012- The Securities Commission Malaysia (SC) and the Securities and Futures Commission Hong Kong are jointly organising a three-day Roundtable of Regional Takeover Regulators of nine jurisdictions here, ending tomorrow.

The roundtable, the first such gathering in the Asia-Pacific region of regional experts in takeover regulation, is a platform for dialogue on current issues and key areas of takeover regulation which will help to foster cooperation and the exchange of information and experience amongst the different jurisdictions.

More information : BERNAMA