1) Lingui/Glenealy: Samling Strategic Corp SB (SSC) is proposing to privatize unit Samling Global Ltd (SGL) and in turn to privatize Lingui Developments Bhd and associate company Glenealy Plantations (M) Bhd. Lingui & Gleanealy, in separate statements to Bursa, said that the privatization exercise would be conditional, among other things, upon the approval of the independent shareholders of SGL. SSC has indicated that it expects to propose an offer price of RM1.63 per share in respect of the Lingui privatization and RM7.50 per share in respect of the Gleanealy privatization. It also said that the offer prices were indicative only, was non-binding and may be subject to variation. Lingui & Gleanealy are controlled by the diversified Miri-based Samling Group headed by TS Yaw Teck Seng. Trading in shares of Lingui & Gleanealy has been suspended since Jan 20 at the companies' request (at RM1.36 & RM6.55 respectively ); +ve if true, with offer at premiums of 20% & 14% over last traded prices.
2) IJM/AZRB: Both IJM & AZRB have said they are awaiting a formal LOA from MRT Corp for 2 elevated packages of the MRT Sungai Buloh-Kajang line. In a statement to Bursa, IJM said it's subsidiary IJM Construction SB had last December submitted a tender for the project & would make an announcement upon receipt of the LOA. AZRB made a similar disclosure to the exchange. The announcements were made in response to a statement from MRT Corp last Thursday that the 2 parties had been appointed the main contractors for package V5 & V6 respectively of the MRT construction works worth RM974m & RM764m; +ve. Packages V5 & V6 are among the 8 elevated packages to be awarded in 2012. The award should pave the way for more active newsflow on projects in the 1st half of the year.
3) Tebrau: Danga Bay SB (DBSB), the master developer of the Danga Bay waterfront projects in Johor, is to be injected into Tebrau Teguh Bhd, say sources. The exercise will transform Tebrau Teguh, which is majority owned by Johor State investment arm Kumpulan Prasarana Rakyat Johor (KPRJ), into the biggest owner & developer of the sea-fronting projects. It is said that the majority owner of DBSB, Datuk Lim Kang Hoo, will drive the development. The transaction is said to be satisfied via the issuance of new shares in Tebrau Teguh to Lim. KPRJ will still be the largest shareholder and Lim, the second largest; +ve if true. If the deal goes through, Tebrau will become a serious contender in the development of Iskandar Malaysia, competing with GLC, UEM Land. Counter suspended today.
4) Mkt: mixed trading with lower liners outperforming on privatization and M&A stories.
