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Reports Malaysia

Malaysia stock market and companies daily report (July 25, 2014)

July 25, 2014, Friday, 03:17 GMT | 22:17 EST | 06:47 IST | 09:17 SGT
Contributed by Shares Investment

MRC To Buy Remaining Interest In Penang Land

- Malaysian Resources Corporation (MRC) has agreed to acquire the remaining 51 percent stake in Penang Sentral, which it does not own, for RM50.8 million.

- Penang Sentral owns 10.4 acres of land in Daerah Seberang Perai Utara, Negeri Pulau Pinang, which is part of the Penang Sentral development.

- Assuming full ownership of Penang Sentral would allow MRC to better manage the subsidiary’s operations and enhance MRC’s profile as a leading developer of transportation hubs.

Significance: The Penang Sentral development is intended to house a new transportation hub, comprising of rail, ferry and bus services as well as retail, commercial and residential space.

Boustead Forays Into London Hospitality

- Boustead Holdings has proposed the acquisition of the Hyde Park Hotel in London, United Kingdom, for RM139 million.

- The property comprises of a 68-room hotel and freehold titles, with good accessibility to major shopping and tourist attractions.

- Presently, the Hyde Park Hotel is leased to an operator and would be purchased with the lease.

Significance: The move provides Boustead with an opportunity to expand beyond Malaysian shores and allows the firm to capitalise on the growing hotel market and hospitality industry in London.

TNB & SIPP Energy To Go Ahead With Johor Power Plant Project

- Tenaga Nasional (TNB) has signed an agreement with SIPP Energy for a joint venture (JV) to build, own and operate a power plant of approximately 1000MW to 1400MW in Pasir Gudang, Johor.

- TNB has not disclosed what kind of stake it would have in the JV and the details on the cost of the project and tariff offered by the consortium.

- The decision came as a surprise as TNB’s unions has called for a competitive bidding exercise for all large-scale energy generation awards, to ensure efficient price discovery. Despite that, the Association of Water and Energy Research Malaysia urged TNB to reject the direct negotiation offer from the Energy Commission and pledge to support a transparent competitive bidding process, like what YTL Power International did.

Significance: This decision would not go down well with proponents of transparency and governance in the power industry. The unions had contended that the direct negotiations would result in an inefficient price discovery process and TNB would eventually end up paying a higher price for electricity.

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