Significant Event

·        My EG Berhad, MIMOS Berhad, Worldcoin Foundation and Tools for Humanity have entered into a collaboration to explore the integration of Worldcoin’s advanced credential verification technology into Malaysia’s Blockchain Infrastructure. My EG Berhad is also the appointed company that manages the Road Transport Department (JPJ) system and the foreign worker application process.

·        Construction giant IJM Corp Bhd has abandoned its plan to acquire a 44% stake in Pestech International Bhd, a company specializing in the engineering of electrical power systems. Instead, Pestech has now been acquired by Dhaya Maju Infrastructure Sdn Bhd, the company involved in the long-delayed Klang Valley Double Track (KVDT) rail upgrading project.

 


Real Estate Industry 

  • KIP Reit is expanding its portfolio to Gerik, Perak via the acquisition of a hypermarket for RM 14.8 million.
  • Ecofirst Consolidated Bhd is acquiring a piece of land in Kajang, spanning 4.51 acres for RM35 million or 178 per square feet.
  • A piece of industrial land spanning 10 acres located in Senai, Johor has crossed hand for RM 69.63 per square feet.
  • Co-working space operator, WORQ is still in expansion mode.

Infrastructure/Logistics

  • Air Selangor, the water service providers that provide treater water to consumers in Selangor, Kuala Lumpur and Putrajaya, has raised RM 1.2 billion via issuance of bond. The fund raised will be used to increase water reserve margins and reducing non-revenue water. Pipe manufacturers and water engineering companies will benefit the most.
  • SD Guthrie, formerly known as Sime Darby Plantation is partnering with TH Properties Sdn Bhd to develop a Halal Industrial Park in Bukit Pelandok, Negeri Sembilan.

Cash Call/ Debt restructuring/Restructuring/Proposed Listing

  • GDS Holdings is raising RM 10 billion in loans for its data centre operation in Malaysia.
  • AirAsia Bhd has secured a US$443 million (RM1.9 billion) revenue bond to refinance AirAsia Bhd's lease liabilities, cover aircraft and engine maintenance costs, and support its working capital. 
  • Pantech Group is planning to list two wholly-owned subsidiaries, Pantech Stainless & Alloy Industries and Pantech Steel Industries, on the Main Market of Bursa Malaysia through a special purpose vehicle (SPV) named Pantech Global Bhd. 


Privatization

  • Property Guru is being privatized by Swedish investment firm EQT AB for USD 1.1 billion.
  • South Malaysia Industries Bhd has received a takeover offer of 45 cents per share from its major shareholders.


Company Expansion Plan/ Capex Plan

  • CNMC Goldmine, a gold miner in Kelantan, Malaysia is expanding its capacity by 60%.
  • Hibiscus Petroleum is on expansion mode. After acquiring several oilfields in North Sea UK, an oil field in Brunei, it is now acquiring a 30% participation interest in the Block PM327 production sharing contract (PSC). The PM327 PSC covers an area of more than 12,500 sq km, with water depths ranging between 20 metres and 75 metres.


The Monetary Authority of Singapore (MAS) has published a consultation paper to subject all REITs to a minimum interest coverage ratio (ICR) threshold of 1.5 times and an aggregate leverage limit of 50%, as it simplifies leverage requirements for the sector. MAS proposes that a minimum ICR of 1.5 times apply to all REITs. Currently, the ICR requirement of 2.5 times is to be met only by REITs which intend to increase their aggregate leverage from 45% to 50%.  To simplify the requirements, MAS proposes that a single aggregate leverage limit of 50% apply to all REITs going forward. A leverage limit of 50%, together with the ICR floor, will continue to foster prudent borrowing by REITs.

Malaysia could be a good destination for REIT listings, as its policies are more relaxed. Malaysia does not have any minimum interest coverage ratio rules, only a leverage ratio of 50%.