Maybank IB Views

ACQUISITIONS / DISPOSAL
PLUS Expressways RM4.36:Buy
RM5.20 offer, but what is the return? Shariah-compliant

Highly enticing but .... Jelas Ulung's RM26b offer is 13% higher than the RM23b offer by UEM-EPF. It promises not to seek any tax waiver, government compensation, nor toll increases. While extremely enticing for shareholders, we fail to see the investment return for Jelas Ulung as the offer price is 11% above our RM23.4b DCF value based on existing concession terms. Without that comfort, we are concerned on financial implications or recourse later. The government must reveal the revised concession terms sought by Jelas Ulung, before the offer proceeds.

Technicals
The FBM KLCI tumbled 4.00 points to 1,495.88 yesterday. The FBM 100 and FBM EMAS closed lower by 21.45 points and 24.48 points respectively.
Trading idea for today is a SHORT TERM BUY call on DIALOG.


Other Local News
TdC: To jointly offer IPTV services with Astro. TIME dotcom Bhd's (TdC) is collaborating with Astro, via its wholly owned subsidiary TT dotcom Sdn Bhd to offer Internet Protocol Television (IPTV) and broadband services in the Klang Valley and Penang. Under the collaboration, Astro's high-definition, video on demand and B.yond TV services will be bundled with TdC's broadband and telephony services. (Source: The Edge Financial Daily)

Supermax: ADR to broaden foreign interest in its share. Supermax Corporation Bhd has obtained approval from the US Securities and Exchange Commission for its Sponsored Level-1 American Depositary Receipt (ADR) programme which facilitates the trading of Supermax's shares by American investors. The Bank of New York Mellon would be the depository bank whilst Malayan Banking Berhad (Maybank) serves as the custodian of Supermax's shares in Malaysia. (Source: The Edge Financial Daily)

UEM Land, Sunrise: Takeover becomes unconditional, deadline extended. UEM Land's conditional take-over offer for Sunrise became unconditional after the acceptance has crossed the 50% threshold yesterday. The closing date and time for acceptance of the takeover has been extended to 5p.m. on Jan 7, 2011. (Source: The Edge Financial Daily)

MAS: Revamps fleet, adds capacity to India. Malaysia Airlines (MAS) plans to revamp its fleet and scale up operations to achieve 30 to 40% passenger growth in the Indian sector next year. MAS will switch from the B777, used at present, to the A380 aircraft to India by 2012. The carrier would also revamp its frequency to its regular destinations and allocate additional 40% capacity in India. (Source: Business Times)

RHB Capital: RHB Bank to hold Bank Mestika stake. Having consulted the relevant authorities, RHB Capital will now park its Bank Mestika stake under RHB Bank, from RHB Venture Capital previously. (Source: The Star)

MTDCap: Gets RM2.6b takeover offer. MTD Capital Bhd (MTDCap) has received a takeover offer from a consortium of four local firms in a deal that values the construction company at about RM2.6b. The four companies, namely Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd which collectively own 131.48m shares or 53% stake in the company, offered RM9.50 a share to acquire the balance 116.0m shares or 47% stake they did not already own. The joint offerors do not intend to maintain its listing status. (Source: The Star)

Bina Puri: Wins job in Brunei. Bina Puri Holdings Bhd's unit Bina Puri (B) Sdn Bhd has entered into a sub-contract worth RM158.4m in Brunei with Chuon Tzu Construction Co Sdn Bhd. Bina Puri will undertake infrastructure works for a housing project which is expected to be completed in 36 months. (Source: The Star)

Iskandar Malaysia: Records RM64.4b in investments. The total value of investments recorded by Iskandar Malaysia from the start of the development corridor project in 2006 until September 2010 was RM64.4b, which exceeded the RM47b target set for this year. A total of RM37.26b or 58% from the total investments were by domestic investors while the balance of RM27.12b from overseas. Of the overall investment recorded, RM25.7b was in the service sector, RM12.8b in the tourism sector, RM19.6b in properties and RM6.28b in the government sector. (Source: Bernama)

Infrastructure: Plans for bridge between Malacca, Dumai. Malacca state government is seeking approval for the longest sea-crossing bridge connecting Malacca with Dumai in Sumatra from the federal government, while the Governor of Riau, Rusli Zainal, will attempt to secure Jakarta's approval. The proposed 127.9km highway costs USD12.8b (RM40.1b) and will be privately funded. Construction is expected to be completed in 10 years. The bridge will be built by Straits of Malacca Partners Sdn Bhd, with financial support guaranteed by China Exim Bank and other financial institutions. (Source: New Straits Times)