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YTL ups the ante to clinch PowerSeraya
In a stunning about-turn, Temasek Holdings has sold electricity generating firm PowerSeraya to Malaysia's YTL Power International for $3.8 billion just a week after it postponed the sale indefinitely due to poor market conditions. YTL Power will pay Singapore investment company Temasek $3.6 billion and assume $201 million of PowerSeraya's net debt. Francis Yeoh, MD of YTL Power & YTL Corp said that he was 'delighted' to acquire PowerSeraya, which will give YTL Power 'significant participation in the Singapore energy market'. PowerSeraya is the last of three power generating companies that Temasek put up for sale under its planned divestment of the gencos, first announced in July last year. The deal is subject to the approval of YTL Power's shareholders. If approved, the acquisition is expected to be completed by the end of February next year.
- The Business Times, P1
(See also, The Straits Times, B24, “Last of Temasek's power units sold for $3.8 billion to Malaysian company”) |
Ex-school site attracts healthy interest
The former Seh Chuan High School has received healthy responses under the Ideas Tender Scheme by the SLA. The highest bid of $90,058 came from Dimensions Commercial School. Other bidders were existing SLA tenants such as Etonhouse International Holdings and Chatsworth International School. The site has a gross floor area of 4,222 sq metres and will be used for educational purposes. It was offered for use as a commercial or foreign system school in October, on a three-year tenancy with an option to renew. The former Mee Toh School opens for tender under the Ideas Tender Scheme today.
- The Business Times, P12 |
S'pore inks trade deals with N. Korea
The Ministry of Trade and Industry (MTI) said Singapore signed an Investment Guarantee Agreement with the country yesterday. Under the agreement, investors will be accorded non-discriminatory treatment, compensation in the event of expropriation or nationalisation of their investments, and free transfer of capital and returns from investment. Separately, the Singapore Business Federation (SBF) also signed a Memorandum of Understanding with the North Korean Chamber of Commerce. The SBF said the MOU will facilitate business exchanges, cooperation, information sharing and exploration of business opportunities between local firms and their North Korean counterparts.
- The Straits Times, B17 |
S'pore among top 5 Stanchart markets
Standard Chartered's £1.8 billion (S$4.16 billion) rights issue prospectus says that Singapore is one of the bank's top five markets and a fast-growing area. Singapore accounted for US$100 million or more than 5 per cent of operating profit from wholesale banking. Hong Kong led, followed by India and Korea. The big question is whether the rights issue is enough to guard against future Asian losses and disciplinary measures. Stanchart's 6.1 per cent core Tier 1 ratio - when others had increased theirs to over 8 per cent - was an obvious cautionary signal. By raising £1.8 billion via a deeply-discounted rights issue, the bank moves to 7.4 per cent, which should soothe investor worries.
- The Business Times, P19 |
New ez-link cards out soon
The next generation of ez-link cards, set to be released later this month, will let commuters pay for Electronic Road Pricing tolls and parking charges, on top of the usual MRT and bus fares. Another feature of the new card is that there will be no travel deposit. Once the card market is liberalised in 2010, commuters are likely to have more than just the new ez-link card to choose from. Nets, which issues the CashCard, has already expressed its interest in entering the public transport domain.
- The Straits Times, B7 |
Property slump in China threatens global growth
House prices in Shanghai, Shenzhen and Guangzhou are plunging. Construction of homes, offices and factories fell at least 16.6 per cent in October after rising 32.5 per cent a year earlier, according to Macquarie Securities Ltd. Shanghai house prices fell 19.5 per cent in the third quarter from the previous three months, according to real estate broker Savills. Declines in apartment values are accelerating in Shenzhen and Guangzhou, two of the fastest growing cities in Guangdong province, which produces 30 per cent of China's exports. Construction will contract 30 per cent next year after expanding 9 per cent in the first three quarters of 2008, according to Macquarie Securities.
- The Business Times, P16 |
KL firms' weak Q3 earnings spark analyst downgrades
Analysts have slashed their earnings growth forecasts after corporate Malaysia turned in a third quarter performance that revealed earnings to be souring faster than expected. While one in four companies covered by stockbroker HwangDBS-Vickers proved to be a letdown for the second quarter, 34 per cent did not live up to expectations for the third. Transport, telco, banking, and construction were significant underperformers but a number of big caps across the board were off target: Maybank, Bumiputra-Commerce, TMI, MAS, MISC, Genting, and Tenaga. HwangDBS is more optimistic about this year's earnings growth, pegging it at 6.7 per cent, but has projected earnings to contract 8.8 per cent next year. Its downgrades included two blue chips - Sime Darby and Resorts World.
- The Business Times, P15 |
Weak Korean currency brings cheer to expats
Concerns over a global recession have prompted foreign investors to dump Korean stocks and convert their gains to the safer greenback. The won, which is the worst-performing currency in Asia, has depreciated by 40 per cent in value against the United States dollar since the start of the year.Real estate agencies in the expatriate areas of Hanam and Itaewon in Seoul reported several cases of American tenants upgrading their houses from apartments to landed properties. But for Seoul, the plummeting value of its currency is not all bad news: More tourists are flocking to South Korea, which has become more wallet-friendly.
- The Straits Times, A19 |
Australian central bank slashes rates
The Reserve Bank of Australia cited the perilous state of the global economy when it cut the benchmark cash rate by a full percentage point to 4.25 per cent, a bigger margin than most analysts had forecast. It left the door open to more cuts. Britain, the Euro zone and New Zealand will almost certainly cut interest rates later this week. In addition to more rate cuts, the Federal Reserve is weighing other responses with its benchmark rate nearing zero and the US economy now officially in recession. |
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