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Reports Malaysia

Malaysia stock market and companies daily report (July 10, 2014)

July 10, 2014, Thursday, 03:31 GMT | 23:31 EST | 08:01 IST | 10:31 SGT
Contributed by Shares Investment

RHB, CIMB, MBSB To Create Malaysia’s Largest Bank

- RHB Capital (RHB), CIMB Group Holdings (CIMB) and Malaysia Building Society (MBSB) are seeking Bank Negara’s permission to merge.

- The merger will result in a bank with an asset size of more than RM600 billion, surpassing Malayan Banking,  and a market capitalisation of more than RM90 billion.

- CIMB, RHB and MBSB have been suspended from trading today pending an announcement.

Significance: With significant stakes in all three entities, the Employees Provident Fund will emerge as the largest shareholders of the mega bank. Other significant shareholders of RHB is Aabar Investment PJSC and OSK Holdings with a stake of 21.4 percent and 9.9 percent respectively.

UMWOG Bags RM163m Drilling Rig Services Contract

- UMW Oil & Gas Corporation’s (UMWOG) business unit, UMW Offshore Drilling, has secured a contract by PTTEP International to provide drilling rig services for US$51.3 million (RM162.8 million).

- The work will be carried out at PTTEP’s project within the Gulf of Mottama, Union of Myanmar.

- The contract is for five firm wells and may be extended for one optional well thereafter.

Significance: The provision of the drilling rig services is expected to contribute positively to UMWOG’s financial performance in FY14 and FY15.

Yinson To Increase Or Sell Off Stake In FPSO Vessel

- Yinson Holdings has received an offer from BW Offshore to either pare down or raise its stake in Petroleo Nautipa floating production, storage and offloading (FPSO) facility vessel.

- Petroleo Nautipa is owned by Tinsworth, a 50:50 joint venture between Yinson’s subsidiary, Yinson Production, and Prosafe Nautipa, a business unit under BW Offshore.

- Yinson will decide its response to the offer within 10 business days.

Significance: The FPSO vessel is on a long-term charter contact with international oil players in Nigeria and Gabon. The contract will end in September 2015, with options for a one-year extension.