Here's what we have for the week
Significant Event
- China will adopt an 'appropriately loose' monetary policy next year, marking the first easing of its stance in about 14 years. While the stock and commodities markets haven't responded well to this action, it could have a long-lasting effect on commodity prices if China initiates its massive infrastructure projects. The yield on China's 30-year government bonds has been falling and is now lower than Japan's 30-year bond yield.
- Axiata Group, the parent company of Celcom, has merged its Indonesian unit, XL Axiata, with Smartfren after signing a definitive agreement with Sinar Mas. XL Axiata has approximately 50 million users, while Smartfren has around 20 million users.
Post-merger shareholding structure of XL Smart
- Macquarie Asset Management Pty Ltd has submitted a bid to buy Axiata Group Bhd’s telecommunications infrastructure unit, edotco Group Sdn Bhd, in a transaction potentially valuing it at about US$3.5 billion.
- Lotte Chemical Titan is shutting down its Naptha Cracker plant in Pasir Gudang, Johor, which has an annual capacity of 430,000 tonnes.
Real Estate Industry
- The land where the fast food restaurant KFC is located at Jalan Kuchai Lama, KL has been sold for RM 337 per square foot or RM 14.7 million per acre. The lease will expire in 2064, giving it 40 more years.
- Crescendo Corp Bhd sold another piece of land located at Nusa Cemerlang Industrial Park to a data centre operator for RM 150 per square foot. A year ago, land in the vicinity was transacted at RM 120 per square foot, marking a 25% increase in a year.
- To mitigate coffee bean price fluctuations, Power Root Bhd, the manufacturer of Ah Huat Coffee, is buying 80 acres of land in Sedenak, Johor, to plant coffee beans.
- Paramount Corp Bhd, which has been acquiring old buildings along Jalan Ampang for redevelopment, is buying the Brunsfield Residence project for RM 145 million. The project comprises 93 units spanning 4.52 acres.
Infrastructure/Logistics
- Tenaga Nasional Bhd and Sembcorp Power Pte Ltd have signed an agreement for the supply of 50 megawatts (MW) of renewable energy to Singapore.
Cash Call/ Debt restructuring/Restructuring/Proposed Listing
- ManagePay System Bhd, the operator for the open toll payment system, is raising RM 51.6 million via a rights issue.
- Kerjaya Prospek Property Bhd is redeeming 1.72 billion RCPS for RM 292.07 million, funded by bank borrowings and internal funds, as part of a 2019 purchase deal involving the Tee family's assets and control over Kerjaya Prospek shares.
- Dataprep Holdings has proposed a share capital reduction to wipe out up to RM 100 million of the company’s accumulated losses.
Company Expansion Plan/ Capex Plan
- Oversea-Chinese Banking Corp (OCBC), CIMB Group Holdings Bhd, and Malayan Banking Bhd (Maybank) are vying for a controlling stake in Bank Pan Indonesia. The stake is offered by Australian lender ANZ and Indonesia's Gunawan family.
- FGV Holdings has terminated its plan to develop an integrated dairy farm business in Chuping, Perlis, which was expected to involve an investment of RM 4.5 billion.
