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Reports Malaysia

Malaysia stock market and companies daily report (June 18, 2014)

June 18, 2014, Wednesday, 05:39 GMT | 00:39 EST | 09:09 IST | 11:39 SGT
Contributed by Shares Investment

Luster Ventures Into The Mining Industry

- Linpower Resources, a unit of Luster Industries, has entered into an agreement with Venturian Minerals to establish a joint venture committee (JVC).

- The JVC will explore and carry out the mining of tin ore and any other minerals in Kemaman, Terengganu, Malaysia, in a land area measuring about 40 hectares.

- Luster will inject RM5.5 million into the JVC for a 60-percent share of the JVC’s profits.

Significance: The joint venture would provide Luster with an opportunity to diversify into a new income stream and reduce its reliance on its existing businesses.

SapuraKencana Bags Drilling Contracts Worth RM2.3b

- SapuraKencana Petroleum’s subsidiaries have been awarded three new contracts and a contract extension valued at US$700 million (RM2.3 billion).

- The contracts, with periods ranging from one year to five years, involve the provision of the group’s tender assist drilling rigs in Malaysia, Thailand and Trinidad and Tobago.

- The contracts will boost SapuraKencana’s order book to approximately RM27.4 billion.

Significance: Looking ahead, SapuraKencana intends to deploy its rigs to Australia, India, Brazil and West Africa over the next three to five years.

Sime Darby To Exit Thai Power Business

- Sime Darby has agreed to sell its entire stakes in three Thai subsidiaries to B.Grimm Power for US$162.9 million (RM522.9 million) in cash.

- Two of the subsidiaries are principally involved in the production and sale of electricity and steam while the third is mainly involved in the operation and maintenance of a power plant.

- The proposed disposal is expected to be completed by 30 June.

Significance: If successful, the proposed sale would be Sime Darby’s third corporate exercise in the last three months after selling its 75 percent-owned power plant in Port Dickson and a 9.9 percent-stake in Eastern & Oriental.