MAS, AirAsia, Kimlun, Kinsteel, MMC among those drawing investor interest

MAS, AirAsia, Kimlun, Kinsteel, MMC among those drawing investor interest
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 09 September 2013 10:15

KUALA LUMPUR: The stocks that may gain investor interest today include MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), AIRASIA BHD [], Kimlun Corp Bhd, KINSTEEL BHD [], MMC Corp Bhd, AirAsia X Bhd and Compugates Bhd.

MAS and AirAsia intend to defend themselves against allegations that they have infringed the Competition Act 2010, which carries a fine of RM10 million each.

The Malaysia Competition Commission (MyCC) said last Friday MAS and AirAsia have infringed Section 4(2)(b) of the Competition Act 2010 by entering into an agreement that aimed at the sharing of markets in the air transport services within Malaysia.

The MyCC decision is premised on an alleged breach by MAS, AirAsia and AirAsia X in entering into a collaboration agreement on Aug 9, 2011. The routes under scrutiny were the Kuala Lumpur-Kuching, KL-Kota Kinabalu, KL-Sandakan and KL-Sibu routes.

MAS said it plans to submit its written representation and indicated it intends to make an oral representation to the Commission before Oct 18.

AirAsia said in a separate statement it intends to “vigorously defend” the allegations that it has infringed section 4(2) (b) of the Competition Act with the collaboration it entered into with MAS in August 2011.

Kimlun announced that its wholly-owned subsidiary, Kimlun Sdn Bhd, had been awarded two projects worth RM325.5 million.

The first project involves the CONSTRUCTION [] of serviced apartments and offices in Puteri Harbour, Nusajaya, Johor Baru for Aston Star Sdn Bhd, a subsidiary of UEM SUNRISE BHD [].

The contract is valued at RM210 million and estimated to be completed by March 2016.

The second contract of RM115.5 million is for the company to undertake earthworks, piling works and structure works for two blocks of commercial buildings in Johor Baru for Wealthy Growth Sdn Bhd, a subsidiary of IOI PROPERTIES [] BHD [].

Kinsteel shares may come under pressure again after rating agency Malaysian Rating Corp Bhd (MARC) downgraded its ratings on the group’s RM100 million Murabahah Commercial Papers/Medium Term Notes (CP/MTN) Programme to DID from MARC-4ID/CID.

Kinsteel’s CID rating on RM100 million Murabahah Medium Term Notes (MMTN) Programme remains on MARCWatch Negative.

MARC said the downgrade to default follows Kinsteel’s failure to redeem its outstanding RM40 million Murabahah CP on Sept 5. The CID rating on Kinsteel’s RM100 million MMTNs denotes a substantial risk of default, it added.

MMC announced last Friday that its subsidiary Malakoff Corp Bhd (MCB) had deferred its listing again.

In a filing with Bursa Malaysia, it said: “MMC has been informed by the board of directors of MCB that it has decided to allow the approval of the Securities Commission for the proposed listing, which is valid until Sept 6, to lapse.”

But it added: “However, it remains the intention of the board of MCB to list MCB on the Main Market of Bursa Securities subject to, among others, the general market and economic conditions.”

MMC said MCB now intends to submit a new application in relation to the proposed listing to the authorities, after taking into consideration several developments since the deferment of the implementation of the proposals in May.



This article first appeared in The Edge Financial Daily, on September 09, 2013.