Major corporate events of the week

Mapletree Logistics Trust modern logistics facility in Subang Jaya, Another major oil corp exiting Myanmar

Here's what we have for the week

Significant Event

• Malaysia's Petroliam Nasional Bhd (Petronas) and Japan's Mitsubishi Corp are divesting their stakes in Myanmar's Yetagun gas field, marking the exit of another oil from Myanmar since last year's military coup.
• 5 of Sapura Energy subsidiaries have been served with winding-up petitions due to unpaid contract sums.
• Chin Hin Group Property Bhd is acquiring a 60% stake in Asia Baru Construction Sdn Bhd for RM30 million cash, to diversify into water infrastructure construction works.

Real Estate Industry 

•  Mapletree Logistics Trust is acquiring industrial land located at Subang Jaya with the aim of developing a modern logistics facility.
• Mitrajaya Holdings is buying 213 acres of land plated with musang king durian in Bentong.

Users can get access all the major transactions of offices, lands, and factories in Malaysia via this tool.

Privatization

• Industrial manufacturer, Shinvest Holdings Ltd had received a voluntary conditional cash offer to acquire all shares from VTTSG Holding Pte Ltd @ SGD 3.50 per share.
• Sarawak-based construction player, Hock Seng Lee had received an unconditional voluntary take-over offer from the major shareholders @ RM 1.35 per share.

Cash Call/ Debt restructuring

• HB Global Ltd is undertaking a private placement to raise about RM23.1 million to fund future investments and for working capital purposes by issuing up to 154 million shares.
• Air Asia’s engineering arm is raising RM 400 million to build 380,000 sqft MRO facilities at KLIA.
• CTOS Digital Bhd is raising RM270 million via a private placement of up to 166.67 million new shares at an indicative RM1.62 each to fund its acquisition of Juris Technologies Sdn Bhd and Business Online Public Co Ltd

Company Expansion Plan

• Carlsberg Brewery Malaysia had allocated RM 110 million to upgrade its brewery facilities within 2022.
• German chipmaker Infineon Technologies AG is investing more than USD 2 billion to build a third module at its site in Kulim, Kedah.

Users can filter the companies' activities via industry or nature of activities via using our tool for Malaysia companies and Singapore companies via the link.

Daily Insights

• Bond traders are trading bonds based on the assumption that surging oil price is unsustainable and the US and Russia is not going to crossfire in Ukraine.
• Oil prices are not coming down anytime in the near future as the potential supply of oil is limited in the near future too.
• 200mm wafer shortages may persist for years.
• Shopify is now trading at a level not even seen during Mar 2020 global stock rout.
• Banks Stocks Have Fully Recovered, Real Estate Is Next.

News we are reading

• The United States is confiscating Afghanistan's foreign reserve. We think this had seriously hurt the US Dollar's reputation. (Washington Post)
• Google is planning to limit ad tracking across apps on Android. This is causing another blow to social media companies that highly rely on ads revenue. (Financial Times)
• Intel is acquiring Tower Semiconductors for $5.4 billion. This acquisition will plug much-needed gaps in Intel’s foundry offerings on the basis of types of process nodes. (Tech Crunch)

Trades we are monitoring

• Short unprofitable tech stocks

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The real estate industry thrives in a low-interest environment while the stock market thrives in a macro environment where there is ample liquidity. In another way, the real estate industry is more susceptible to the interest rate level while the stock market is more susceptible to the Fed’s balance sheet.

Blackrock is the parent company of the world's largest ETF manager, iShares. Blackstone is an alternative investment management company that focuses mainly on real estate. The share price of Blackstone had surpassed Blackrock since July 2021 when the inflation rate started to become the major concern of all investors.  Could this be a hint that the Fed may not raise interest rate too much but instead focus on slimming down its balance sheet size?