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Reports Malaysia

Malaysia stock market and companies daily report (June 06, 2014)

June 6, 2014, Friday, 06:15 GMT | 01:15 EST | 09:45 IST | 12:15 SGT
Contributed by Shares Investment

Sona Petroleum Buys Thai Asset For RM903.6m

- Special-purpose acquisition company, Sona Petroleum announced plans to acquire a 40 percent stake in the Thai unit of London-listed Salamander Energy for US$280 million (RM903.6 million).

- The Thai asset, Salamander Energy (Bualuang), owns two concessions called B8/38 and G4/50. B8/38 had been producing hydrocarbons since 2008 and accounted for the bulk of Salamander’s income while G4/50 is in an exploration stage, according to the latter’s 2013 report.

- The acquisition will be paid for via cash and a combination of internal funds, raised from its initial public offering in July and external borrowings.

Significance: The transaction will be Sona Petroleum’s qualifying acquisition and gives it a balanced portfolio of production, development and exploration assets in Thailand as it develops into an independent upstream oil and gas company.

MRC In RM180m Plan To Revamp KL Sentral

- Malaysia Resources Corporation (MRC) will spend around RM180 million in its regeneration plan for Kuala Lumpur Sentral (KL Sentral), which includes landscape decks that connect to major tourist attractions.

- The regeneration plan, targeted to complete over three years, encompasses two scopes; one is to address the needs of the fast-changing landscape in terms of development and demands of tenants and customers, while the second entails connectivity to Muzium Negara and Lake Gardens.

- By connecting to the attractions, MRC is expecting to bring in a good flow of people.

Significance: The regeneration plan is also in line with the expected increase in commuters in the area, which is expected to hit 220,000 when the MRT starts operations in 2017. The current built-up area of KL Sentral is a constraint in coping with 180,000 people.

Genting Rises 1.7% On Japanese Casino Bill Debate

- Genting rose RM0.17 to close at RM10 yesterday upon news that Japan’s parliament would likely start discussing a bill to legalise casino gambling next week, with the main purpose of revitalising the economy.

- According to Reuters, Genting Singapore is among the top bidders vying for a spot in Japan’s legalised casino gambling.

- AmResearch has upgraded their recommendation of Genting to “Buy” from “Hold” with an unchanged fair value of RM10.80 per share.

Significance: Apart from its interest in the Japanese market, Genting is also developing an integrated resort in Las Vegas and Miami, its joint-venture project in Jeju, South Korea and has registered its interest in building a casino in New York State.