EDGE Weekly (Dec 24 - Dec 30)

The EDGE weekly has highlighted SC's impending decision to liberalise (or not) commission rates for all internet and cash upfront transactions. How low will it go? Will the minimum RM40 negotiable for internet users? Who will SC protect in their quest to increase trading volume - the market, the big brokers or will they find a nice balance for everyone?

I will publish and announce any development here once SC comes up with a clearer commission and price structure.

Here are the other news in this weekend's EDGE... have a nice week ahead. And Happy Christmas.

Metacorp wins container yard

• Metacorp acquired an 18.5-acre piece of land along Federal Highway from NCB Holdings for some RM120mil
  
• The land houses Kontena Nasional Bhd operations
• Not clear what Metacorp plans to do with land
• GDV high given its strategic location
• Will they opt for residential development? But traffic jams and layout of roads will be an issue
• NCB is said to have been looking to dispose the land for some time now

Ann Joo to link up with China's Tangshan

• Ann Joo Resources Bhd plans to sign a deal with China's steelmaker Tangshan Iron & Steel Group
• Tangshan will provide technical assistance, while Ann Joo will own the blast furnace 100%
• Construction to begin early next year, expected to be in operation by end-2008
• Blast furnace to produce molten steel and pig iron for Ann Joo's own consumption
• This will lower production cost; a tie-up with Tangshan will also help Tangshan to expand abroad
• Will the new blast furnace, Ann Joo will be able to provide long and flat product lines; this will allow company to hedge against any cyclical downturn
• The growth demand will continue to grow despite subprime woes, as strong demand is seen coming from emerging markets e.g. China, India, Russia and Middle East

GPLUS boardroom tussle; what makes GPLUS so attractive to new substantial shareholder?

• The EDGE cited: (unnamed) sources say a group from Penang acquired 11.7% in the company
• An extraordinary meeting might be called to remove certain directors from the board
• Most of the existing directors are nominees of Teh Soon Seng
• Shareholding structure unclear; Teh held 18.16% stake in GPLUS through Strategik Bakti Sdn Bhd but a company search showed that Strategik Bakti had been dissolved, as a result Strategik Bakti has been excluded as a subtantial holder
• Last week, 20.1mil GPLUS changed hands in direct deals
• Earlier in the month, GPLUSt saw in a new substantial holder emerging- Indian Corridor Sdn Bhd
• The people behing Indian Corridor remains a mystery
• What makes GPLUS so attractive to the new shareholder?
• GPLUS earnings come from its property projects in China; the company recently returned to black for 3Q2007 ended Sept 07 after being in the red for seven consecutive quarters

SIME cable time line said to be aggressive

• SIME DARBY Power Sdn Bhd has set a tight schedule for submission of engineering, procurement and construction (EPC) contract (by April next year)
• Letters of award to winning contractors are to be issued in June the same year
  
• Consultants familiar with mega electricity transmission contracts say the time line given is very aggressive, as normally it will take 6-9 months from the time of EPC to the actual award of the tender; furthermore interested parties will ask for one or two month extension
  
• The biggest portion of the project will be the undersea cable, said to cost RM9bil; Sumitomo (Japan) and Pirelli (Italy) are said to be slated for the job given the tight time line
  
• The local agent for Pirelli is Nova Nusantara

Little upside for PLUS in new highway

• PLUS acquired the Butterworth-Kulim Expressway (BKE) from MMC Corp; PLUS intends to fund the purchase entirely through borrowings
• The new highway will have concession that stretches to 2026
• Deal said to be good for MMC Corp as it is a non-core asset
• Besides BKE is not performing for MMC Corp, as traffic flow at low leves
• The government has recently announced a toll increase for BKE, which could reduce flow
• An analyst tried to justify PLUS latest purchase by saying that as long as PLUS is not taking on a loss-making entity, it would be ok

Suiwah: from retail chain to O&G

• Penang-based retail chain operator, Suiwah Corp Bhd will take up 25% stake in Valdel Oil & Gas which is involved in exploration and production of oil and gas in India
• Suiwah MD explained the reason for surpring move, "Our relationship (with Valdel) goes back 15 years, so this project need not start from scratch."
• Suiwah have only invested RM1.2mil so far, contribution is only expected to come in after the first 2 years
• Valdel's joint venture with Price Petroleum of India has already struck oil in Gujerat
• According to an analyst, O&G business in India is difficult as the government keeps a lid on petrol prices, keeping them at low rates
• Will this cautious entry into O&G be a good gamble for Suiwah?