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Reports Malaysia

Malaysia stock market and companies daily report (August 01, 2014)

August 1, 2014, Friday, 05:47 GMT | 00:47 EST | 10:17 IST | 12:47 SGT
Contributed by Shares Investment

George Kent Looks To Diversify Into O&G

- George Kent (Malaysia), a firm mainly involved in infrastructure construction and the water meter sector, is eyeing a diversification into the oil and gas (O&G) sector.

- However, it will not be considered a new foray as the firm used to provide supply services to petrol pumps around the country.

- Presently, George Kent is tendering for RM15 billion worth of jobs, with more than RM10 billion derived from railway jobs including the mass rapid transit line two project and the remainder from the water construction segment.

Significance: Although George Kent is still studying the proposal to venture into the O&G industry, the firm intends to begin with the service engineering segment.

Sime Darby Emerges As Preferred Bidder For NBPO Shares

- Sime Darby announced that it is the preferred party for Kulim’s (Malaysia) 49 percent interest in New Britain Palm Oil (NBPO).

- NBPO owns 77,000 hectare (ha) of oil plantations in Papua New Guinea (PNG) and the Solomon Islands, 12 palm oil mills and one refinery each in PNG and Liverpool, England.

- Presently, NBPO is the largest sugar and beef producer in PNG via its more than 7,700 ha of sugar cane plantations and 9,200 ha of grazing pastures.

Significance: Sime Darby and Kulim have 60 days to finalise the deal, which previously saw players such as Felda Global Ventures Holdings and Wilmar International in the running.

Zelan-Led Consortium Bags RM249m Bridge Project

- A consortium comprising of Zelan’s subsidiary, Zelan Construction, has won a contract for the construction of a drawbridge in Kuala Terengganu City Centre worth RM248.7 million.

- The project will connect Muara North and Muara South, two reclaimed areas on the North and South of the Terengganu River. It will create a strategic link from the city centre all the way to Kuala Terengganu’s Sultan Mahmud Airport.

- Zelan Construction holds a 70 percent stake in the consortium with Hasrat Sedaya owning the remaining 30 percent.

Significance: The contract, awarded by Malaysia’s East Coast Economic Region Development Council, will commence on 13 August 2014 and lasts for 135 weeks. The expected date of completion for the project is 14 March 2017.

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