Good morning,
1) AirAsia: A consumer watchdog in Australia, The Australian Competition & Consumer Commission (ACCC) has submitted documents to the Australian Federal Court, alleging that the budget airline did not disclose the full fares for it's flights out of Australia. It claimed that the fares displayed on AirAsia's online website disclose only part of the total. The company is currently seeking legal advice & will not comment further at this time, AirAsia said in a media statement. It added that the allegations relate to specific routes from Australia that pass through KL. Group has been operating in Australia since 2007 without any previous claims; -ve. This suit comes on the back of AirAsia announcing that it's long haul arm AirAsia-X will commence selling tickets for it's KL-Sydney route, with flights to Sydney set to commence in April. Meanwhile,on the domestic front, AirAsia & MAS has been given a month to provide the Malaysia Competition Commission (MyCC) with the relevent documents in relation to the Commission's probe on the share-swap agreement between AirAsia & MAS.
2) DBE Gurney: In a reply to Bursa's query on unusual market activity, DBE Gurney said the company has plans to undertake a private placement and the talks with a CI Holding shareholder was at a preliminary stage now. The purpose of the placement of new shares was to raise fresh working capital. Datuk Johari Ghani, who sold Permanis SB to Japan's Asahi Group Holdings for RM820m cash last year, is the single largest shareholder of CI Holdings. Johari, the MD of CI Holdings, holds a 30.5% stake in the company. According to him, CI Holdings is on the prowl for new business after divesting Permanis. This has sparked speculation that CI Holdings may be keen on poultry breeder DBE Gurney. A Chinese media reported yesterday, which quoted sources, that CI Holdings would pay RM40.4m (equivalent to 20s per share) to acquire a 30% equity stake in DBE Gurney; Neutral, DBE was the most actively traded stock yesterday on the Bursa, with price surging 23%.
3) KFC: Media reported that The Malay Chamber of Commerce (MCCM) has not given up it's quest to gain control of the KFC fast food business in Malaysia. After the rejection of it's offer to acquire Kulim Bhd's 54% shareholding in QSR Brands, the Chamber is now said to be eyeing Lembaga Tabung Haji's (LTH) 23% stake in KFC Holdings. MCCM president urged LTH to oppose the proposed sale of KFC's assets & liabilities. Alternatively, he said LTH should sell it's KFC shares to the Chamber at RM4.10 each. KFC ended trading at RM3.82 yesterday. LTH has refused to comment on matter at this time.
4) Mkt: maintain rangebound trade with firm undertone on relatively lower volume in view of the long CNY holidays weekend, accumulate CIMB, MAS, MHB.
