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Reports Malaysia

Malaysia stock market and companies daily report (March 12, 2014)

March 12, 2014, Wednesday, 05:41 GMT | 02:41 EST | 11:11 IST | 13:41 SGT
Contributed by Shares Investment

IHH Healthcare Could Buy Healthscope For A$5b

- IHH Healthcare is considering a A$5 billion (RM14.8 billion) bid for Healthscope, the Australian healthcare provider owned by TPG Capital and Carlyle Group LP.

- According to sources, Healthscope’s operating company, without its hospital properties, could be valued at A$4 billion.

- IHH’s bid for Healthscope, if successful, would be the biggest acquisition by a Malaysian company since December 2012. IHH had bought Singapore’s Parkway Holdings in 2010 and completed the purchase of a 60 percent stake in Acibadem Saglik Hizmetleri & Ticaret AS, Turkey’s largest hospital group in 2012.

Significance: IHH’s rapid expansion through acquisitions is a bid to ride on the rising demand for medical services in Asia and Europe. The group remains on the lookout for value-accretive opportunities to add to its portfolio.

New Contender For Kian Joo Can Factory

- Toyota Motor Corporation’s trading arm, Toyota Tsusho Corporation (TTC), has made an offer to buy 51 percent of Kian Joo Can Factory at RM3.74 a share.

- The bid is 13.3 percent higher than the RM3.30 offer by Aspire Insight last year to buy out Kian Joo under a RM1.5 billion takeover plan. The management buyout offer by Aspire was to diversify Kian Joo’s revenue streams.

- Kian Joo has until Friday to respond to Aspire’s offer, while the deadline for TTC’s offer is next Monday.

Significance: Public Investment Bank believes that the interest from TTC is genuine and it could mark the first wave of Japanese companies heightening their investment in Malaysia this year when asked if the TTC offer was just a strategic move to get Aspire to raise its offer. Shares of Kian Joo are expected to trade higher throughout this week.

Sime Darby In RM198.3m Venture

- Sime Darby’s China-based unit Weifang Sime Darby Port Company has teamed up with two Chinese companies to build and maintain the sea channel and port infrastructure in the republic.

- The unit will set up a 37:38:25 joint venture company with Weifang Port Company and Shandong Hi-Speed Transport & Logistics Investment Company with a registered capital of Rmb1 billion (RM536 million). The project will involve the construction, management and maintenance of the sea channel, anchorage and other port infrastructure within the port region.

- Sime Darby’s 37 percent stake in the venture means it will be contributing an amount of RM198.3 million.

Significance: The venture is expected to accelerate the development of Weifang Port’s capabilities and improve its competitiveness.