Good morning,
1) Jaks: Jaks Resources Bhd’s wholly owned subsidiary Jaks Power Holdings Ltd (JPH) has entered into several agreements to formalize its proposed JV with Meiya Power (HD) Ltd and Island Circle Investment Holdings Ltd to invest in two 600MW coal-fired power plants projects in Vietnam. Meiya Power is an indirect subsidiary of China Guongdong Nuclear Power Holdings while Island Circle is a subsidiary of Island Circle Development (M) SB, whose principal activities are property development. Upon completion of the proposed JV, the effective equity interest of JPH, Meiya Power & Island Circle in JPP (Jaks Pacific Power Ltd – the company licensed to undertake the design, engineering, construction, operation & Maintenance of the two 600MW coal fired power plant) would be 50:40:10. Construction of the plant was expected to begin mid-year; +ve and expected.
2) Gamuda: Media reported that Gamuda has been roped in to be part of a group which is the front runner for the construction of the Gemas-Johor Baru electrified double–track railway line. A source said Gamuda was in a consortium led by China Railways Construction Co (CRCC) and another local party linked to the Johor royal family and that this group is the current front runner for the RM8b project, known as the Gemas-JB electrified double-tracking project (EDTP). Two other China firms are also in the running for the job, namely China Railway Engineering Co & China Communication Construction Co; +ve if true. Should the CRCC group be chosen, Gamuda could redeploy it’s machinery from the on-going Ipoh-Padang Besar EDTP for the southern rail upgrade link. It can save on capital expenditure & the Chinese partner would not have to spend extra for ferrying huge equipments to Malaysia. The RM12.5b Ipoh-Padang Besar EDTP is expected to be completed by the end of this year.
3) Can One/ Kian Joo: Can One Bhd’s major shareholders & friendly parties are considering a privatization or merger exercise with Kian Joo Can Factory Bhd (KJCF), reliable sources said. The move is related to Can One’s acquisition of a 32.9% stake in Kian Joo, which should be completed today, after a lengthy court battle. Can One may be getting the funding from Kuwait Finance House, added the source. However, it isn’t clear how Can One’s major shareholder would raise funds for the privatization exercise. According to sources, Can One, upon getting the KJCF shares, is set to call for an EGM to install it’s own directors. However, it is believed the See family would not give in easily should such a boardroom tussle occur, as family may feel that KJCF shares is worth much more than what it is trading now & they have the resources to buy back a substantial block by utilizing the sale proceeds to be received from Can One.
4) Mkt: situationals & lower liners to continue their outperformance on index-linked stocks.
