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Headliners (R&A Telecommunication Group, RHB Capital, Yinson Hldgs, Jotech Hldgs)
Malaysia Headliners | 10 August 2011
By: Gerald Teo
Articles (40) Profile

R&A Telecommunication Aims For RM1b Turnover
R&A Telecommunication Group (R&A), which expects revenue to hit as much as RM100m this year, targets to achieve RM1b revenue within the next five years as it expands its global presence. CEO Francis Tan said that the jump to the RM1b revenue target would not be a “one-hit wonder” as the company plans to hit the target via growing its revenue steadily each year. The company has plans to expand into at least two new countries, which may include Indonesia, Australia, Sri Lanka, Cambodia and Vietnam over the next 12 months as well as to expand beyond the Asia-Pacific region in five years. With mobile operators being more open to outsource its maintenance work to a vendor to operate more efficiently and tower-share to lower its cost, R&A would be able to achieve its target faster.

RHB Capital On The Look Out For Acquisition In South East Asia
RHB Capital (RHBCap), which is on the lookout for acquisitions in Southeast Asia, is still interested in buying PT Bank Mestika Dharma, quashing speculation that it may drop the deal as Indonesia looks to cap foreign ownership in banks. The deal is expected to complete latest by the fourth quarter. RHBCap’s plan to buy Bank Mestika has run into numerous delays due to queries from the Indonesian central bank relating to disclosure and the structure of the deal. Funded via a RM1.3b renounceable rights issue, the deal is currently pending regulatory approval from Indonesia. As RHBCap aims to boost its profit contribution from the international operations to as much as 10% this year, from below 5% now, its move to acquire banking stakes in other Asean countries and to buy Bank Mestika will contribute to its international business.

Yinson To Focus On O&G Sector
Yinson Holdings (Yinson) is downsizing its current core activities of land transportation and logistic services businesses to focus on building and developing its oil and gas (O&G)-related activities. Chairman Lim Han Weng said that the company expects O&G activities to contribute 80% of its total earnings in the next five years. In order to make its mark in the competitive O&G sector, Yinson has teamed up with PetroVietnam Technical Services Corp, a more experienced party, in offering related services to the O&G clients. Earlier, the companies had secured a floating storage and off-loading (FSO) contract worth US$331m for 10 years with the options to extend another 10 years and are also currently bidding for offshore support services contracts in Malaysia, Indonesia and Thailand worth RM800m. Going forward, Yinson also plans to increase the number of its FSO vessels from one to at least four new vessels yearly. As the O&G sector currently contributes a fifth to the Malaysia’s gross domestic product, Yinson is set to gain from the switch to the O&G sector amid the bright outlook of the sector and could become one of the main players in the sector.

Jotech Holdings, AIC Corp and AutoV Corp Merger On Its Way To Completion
The proposed merger between Jotech Holdings, AIC Corp and AutoV Corp to form a bigger manufacturing company, which may be called Temasek Formation, is expected to complete in 1Q12. Owner of Temasek Formation, also executive chairman of both Jotech and AIC Corp, Datuk Goh Tian Chuan, said that the RM696m takeover of the three companies will create a larger entity with diverse customer portfolios in industries such as medical and life sciences, automotive, and electrical and electronics. Temasek Formation has offered to buy Jotech, AIC Corp and AutoV Corp shares for a total of RM217.3m, RM339.2m and RM138.9m respectively. The stronger financial footing gained after the merger will allow the three companies to tap into each other’s strengths to access a wide array of lucrative business opportunities as well as improve its ability to raise funds in the debt and capital markets.

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