Malaysia Daily Update

Parkson: Parkson Retail Group ordered to pay RMB140m (Huge Financial outflow)

Parkson Holding Berhad (PHB)'s 51.7% equity-owned Parkson Retail Group (PRG) announced that the arbitral award dated 25 March 2015 by China International Economic and Trade Arbitration Comission has ordered the group to pay a total sum of RMB140m (RM83.9m) to its landlord in Beijing, China for the continued occupation of four floors of Metro City Shopping Plaza after the termination of its tenancy agreement. (Source: Bursa Malaysia)

**Trading in the securities of Parkson Holdings continued to be voluntarily suspended from 9am to 5pm on Tuesday. The department store owner and operator said it had requested for the continuation of the suspension pending the release of an announcement by its 52.71% owned Parkson Retail Group Ltd. Parkson Retail is listed on The Stock Exchange of Hong Kong Ltd. It has been suspended since 1.02pm on Monday. Trading in Parkson Holdings was suspended since Monday. (Source: Star Biz)

KPJ (ongoing M&A)

KPJ Healthcare Bhd has proposed to acquire the entire stake of Crossborder Hall (M) Sdn Bhd and Crossborder Aim (M) Sdn Bhd for RM4.718mn. KPJ said the acquisition was entered through its wholly-owned subsidiary, Kumpulan Perubatan (Johor) Sdn Bhd and AmanahRaya Trustees Bhd, the trustee for Al-'Aqar Healthcare REIT. Crossborder Hall and Crossborder Aim are the wholly-owned subsidiaries of Al-'Aqar, said KPJ in a filing to Bursa Malaysia today.(StarBiz)

Mydin to absorb RM15m in GST cost from monthly profits

Mydin Mohamed Holdings will absorb the cost of the GST of RM15m from the estimated RM300m monthly profits of its hypermarket and supermarket outlets. Mydin would recover a portion of the GST cost from its suppliers and from the stocks that are refundable under the existing SST. (Source: Business Times)

Karex Bhd has proposed to buy two pieces of land on which its plant is located for RM14.8mn. Its wholly-owned subsidiary Karex Industries Sdn Bhd had entered into two sale and purchase agreements with Tropical Produce Company (Pte) Ltd for the acquisition. The two pieces of land are located in Pontian, Johor, measuring approximately 4.53ha. (Bursa)

Integrax Bhd's co-founder Amin Halim Rasip has decided to part with his shares in the company, indicating he will be accepting Tenaga Nasional's (TNB) offer for Integrax at RM3.25 per share. Amin holds a 24.76% stake in the port operator. Given the different directions pursued by TNB and Perak Corp Bhd in respect to the future of the Lekir Bulk Terminal and Lumut Maritime Terminal assets, Amin said he will be selling his Integrax shares, as it will be more beneficial and productive for him to pursue the business projects and opportunities he intended to develop at Lumut, at a number of other suitable locations in Malaysia and the region, he said in a statement issued this evening. (Financial Daily)

MIDA, Panasonic Eco ink deal to enhance investment flow from Japan

MIDA has signed a partnership with Panasonic Eco Solutions Malaysia SB to enhance the investment flow from Japan. MIDA will leverage on the Japanese company's experience with Japanese SMEs. Panasonic Eco, a subsidiary of electric product giant Panasonic Corp, is one of the green-driven engineering solutions-based company which provides know-how on energy, air, water and ground solutions. (Source: Business Times)

Takaso Resources Bhd has called off the proposed acquisition of Dynavance Construction Sdn Bhd. Takaso and Dynavance Construction have decided to call of the shares sale agreement (SSA) that both parties had entered into in October last year, which would have seen Takaso buying the entire shareholdings of Dynavance for RM9.5mn in cash. In a filing with Bursa Malaysia today, Takaso said both parties had, vide a deed of mutual rescission (DMR), decided to revoke the SSA with effect from today. Among the DMR terms is that Dynavance will release Takaso from due performance and observance of all its obligations and covenants under the SSA, and likewise Takaso is to apply the same to Dynavance. (Financial Daily)

Tanjung Offshore Bhd executive director Tan Wee Koh and independent and non-executive director Shahrizal Hisham Abdul Halim have both resigned from the O&G services company, for “personal reasons”. Tanjung Offshore, via separate filings on Bursa, also announced the appointment of two new independent and non-executive directors, namely Datuk Suraj Singh Gill, 44, and Datuk Syed Hussian Syed Junid, 54. (Financial Daily)

Pharmaniaga to reduce dependency on government concession

Pharmaniaga Bhd aims to strike a balance in local pharmaceutical business by reversing the current ratio of non-concession versus concession from 42:58 to 60:40 in the next 3-4 years. The company would continue to expand its manufacturing capabilities in a bid to reduce dependency on government concession. (Source: Business Times)