S.Korea Himart plans to raise about $500 mln in IPO

July 30, 2010 By Leave a Comment

SEOUL, July 29 (Reuters) – Himart, South Korea’s biggest
electronics retailer, plans to raise about 600 billion won
($506.3 million) in a 2011 initial public offering, a Himart
official said.

Himart has chosen Daewoo Securities to manage the IPO, the
proceeds of which are likely to be used to pay off debts owed by
its parent firm Eugene Corp (023410.KQ), the official, who
declined to be named because of the sensitivity of the issue,
said.

Himart, founded in 1987, operates 281 stores in the country.
In its 2009 financial year the company had a a net loss of 37.2
billion won.

Eugene Corp has an 80 percent stake in Himart. Himart CEO Sun
Jong-koo has a 19 percent shareholding, a March regulatory filing
showed.

For a factbox on South Korea’s IPO market, click on
[ID:nTOE62U02Z]

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Oman state power firm to take over Dhofar Power

July 28, 2010 By Leave a Comment

July 27 (Reuters) – Oman’s state-owned Electricity Holding Co., majority shareholder of Dhofar Power Co. DHP.OM, will offer a 25-percent premium to buy the remaining stake in the firm, Dhofar said on Tuesday.

Electricity Holding, which has a 69.42 percent stake in the company, plans to buy the outstanding shares in the third quarter for 2 rials per share, valuing the stake at 5.52 million Omani rials ($14.34 million).

Dhofar Power shares closed at 1.6 rials on Monday.

The deal will be completed by the end of September, Dhofar said in a statement to the Muscat bourse.

Dhofar planned to kick off a 200 million rial, five-year expansion plan this year, centered on its transmission and distribution operations. [ID:nLG341013]

The power company said in November it was looking to its majority shareholder to help fund the expansion and warned income would be hit by higher borrowing costs related to the plan.

Dohar Power had a first-quarter net profit of 650,000 rials, down from 940,000 rials in the same period in 2009.

(Reporting by Saleh al Shaibany; Editing by Jason Neely)

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JFE says no plans to raise JSW stake further

July 28, 2010 By Leave a Comment

July 27 (Reuters) – JFE Steel Corp, the world’s fifth-biggest steelmaker, said it had no plans to further raise its stake in India’s JSW Steel Ltd (JSTL.BO) above 14.99 percent.

JFE announced earlier that it would spend about $1 billion for a 14.99 percent stake in India’s JSW Steel. [ID:nTOE66Q02R] (Reporting by Yuko Inoue)

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UPDATE 1-Saudi Kayan seeks $2.4 bln for rising plant costs

July 26, 2010 By Leave a Comment

RIYADH, July 25 (Reuters) – Petrochemical firm Saudi Kayan 2350.SE said it was seeking bank financing with the help of main shareholder Saudi Basic Industries Corp (2010.SE) (SABIC) to cover a $2.4 billion rise in the building costs for a production complex.

Kayan has said that up to the end of March it had spent 35.4 billion riyals ($9.4 billion) on the construction of the Jubail-based giant complex, which it projects will have an annual production capacity of more than 4 million tonnes of petrochemical and chemical products.

“It is expected that the gross cost of the project will rise by approximately 24 percent or around 9 billion riyals ($2.4 billion),” Kayan said in a statement to the Saudi bourse.

“The company is working on necessary arrangements to obtain financing from one or several banks to cover the increase in costs and support from the main shareholders to ensure the completion of all plants in the complex within the fixed deadline,” it said.

Kayan Chairman Mutlaq al-Morished told Reuters the company would organise a loan with help from its shareholders, including SABIC.

“They (the shareholders) can either guarantee the loan for Kayan or they can borrow and pass on the funds to Kayan,” he said.

Last Monday, SABIC, which holds a 35 percent stake in Kayan, said it had no plans for a bond issue in the medium term as it had raised 8.25 billion riyals through two loans in June from state-run National Commercial Bank and Alinma Bank 1150.SE. It made the announcement after delaying a planned dollar bond in May. [ID:nLDE66I0LY]

“I cannot tell you if some of the funds SABIC obtained through these two loans will go to Kayan. They may do, they may not,” Kayan Chairman Morished said.

Kayan also said in its statement it had started trial production on Sunday at its olefins plant, which is part of the Jubail-based complex.

Kayan plans to start full commercial operations at 15 out of 16 units before the end of 2011, Mosaed al-Ohali, SABIC’s executive vice-president for manufacturing said last week. ($1=3.750 riyals) (Reporting by Souhail Karam; editing by Karen Foster) (souhail.karam@thomsonreuters.com; +966 1 463 2603; Reuters Messaging:souhail.karam.reuters.com@reuters.net))

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UPDATE 1-Abu Dhabi’s Waha Q2 profit plunges, share rally stalls

July 26, 2010 By Leave a Comment

DUBAI, July 25 (Reuters) – Abu Dhabi-listed Waha Capital WAHA.AD, whose shares had surged ahead of a $1.5 billion bond issue, reported a 90-percent decline in second-quarter profit on Sunday as earnings in invested firms slumped.

Waha, which is involved in real estate and leasing for the oil and aviation sectors including deals for military planes for the UAE Armed Forces, reported a profit of 5.99 million dirhams ($1.63 million), down from 54.5 million a year earlier.

Profits from equity accounted investees, a reference to where Waha holds a significant stake in others, fell by more than half to 20.67 million dirhams.

The stock was down 3 percent at 0852 GMT, having been up as much as 6 percent in early trade.

It had gained more than 19 percent in the previous three sessions since early price guidance indicated a 10-year benchmark bond for unit Waha Aerospace would be priced at 225 basis points over 5-year U.S. Treasuries, with the issue expected to raise about $1.5 billion. [ID:nLDE66J0PJ]

The Abu Dhabi governement holds a 15 percent stake in Waha, according to Reuters data, and has unconditionally backed the bond.

“The headline (profit) number is quite weak, but the stock has rallied on the back of its bond issue, which is significant fundraising for the company,” said Ali Khan, managing director and head of brokerage at Arqaam Capital.

“To get a 10-year bond away at this price is not bad.”

The firm’s revenues for the three months ending June 30 were 76.7 million dirhams, down 20 percent.

(Editing by Jason Neely)

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U.S. Treasury selling more Citigroup shares

July 24, 2010 By Leave a Comment

July 23 (Reuters) – The U.S. Treasury department said on Friday it will sell another 1.5 billion Citigroup Inc (C.N) common shares as it whittles down a 27 percent stake acquired during the financial crisis.

Treasury said it sold 2.6 billion Citigroup shares in two previous sales and received about $10.5 billion. It still owns 5.1 billion shares and intends to keep selling them “in an orderly fashion.” (Reporting by Glenn Somerville; editing by Jeffrey Benkoe)

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Air NZ fancies Queenstown Airport stake

July 24, 2010 By Leave a Comment

July 23 (Reuters) – Air New Zealand (AIR.NZ) is willing to lead a consortium of airlines to take a stake in Queenstown Airport, the carrier said on Friday.

“Air New Zealand would be willing to lead a consortium of airlines to take a cornerstone shareholding in Queenstown airport and commit to ensuring the cost of travel stays down,” Air NZ general manager for Australasia Bruce Parton said in a statement.

He said they would not seek any dividends, which would be reinvested into the airport infrastructure.

The proposal follows the move by Auckland International Airport (AIA.NZ), the country’s main international gateway, to take a 25 percent stake in Queenstown Airport for NZ$27.7 million.

Auckland Airport has the option to increase its holding to between 30 percent and 35 percent within the next year. It said the move was part of its growth strategy to increase tourist numbers to the country through partnerships collaborating with other airports in New Zealand and Australia.

“AIAL has displayed significant greed over several years and isadept at fleecing travellers; it would be nave to think it’s not aiming to increase airline and airport charges which will ultimately increase the cost of travel into and out of Queenstown,” Parton said.

Shares in Air NZ last traded up 3.7 percent to NZ$1.12, while Auckland International Airport was up 1.6 percent to NZ$1.95. (Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212, wellington.newsroom@reuters.com)

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Indian shares turn positive on earnings optimism

July 20, 2010 By Leave a Comment

July 19 (Reuters) – Indian shares recovered from early lows on Monday morning, on optimism over quarterly earnings and a newspaper report Etisalat was close to buying a stake in Reliance Communications (RLCM.BO), the no. 2 mobile operator.

At 10:20 a.m. (0450 GMT), the 30-share BSE index .BSESN was up 0.03 percent at 17,961.03 points, with 16 components advancing. It had declined as much as 0.6 percent early.

The 50-share NSE index was barely changed at 5,394.10.

Reliance Communications was up 2.2 percent at 191.30 rupees after a Financial Times report Emirates Telecommunications (ETEL.AD) (Etisalat) was close to buying 26 percent stake in the Indian firm. [ID:nSGE66I05B] (Reporting by Ami Shah)

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Etisalat close to buying 26 pct in Reliance Comm: report

July 20, 2010 By Leave a Comment

(Reuters) – Emirates Telecommunications ETEL.AD (Etisalat) is close to buying 26 percent in Indian telecoms Reliance Communications (RLCM.BO), the Financial Times said on Monday, sending Reliance shares up nearly 4 percent.

Citing people familiar with the negotiations, the newspaper said the deal was estimated to be worth $3 billion.

The two groups are also considering merging Reliance Comm, India’s No. 2 mobile operator, with Swan Telecom, the Indian company in which Etisalat holds a 45 percent stake, it said.

Reliance Comm and Etisalat could not be immediately reached for comment.

Shares in Reliance Comm, valued by the market at $8.3 billion, jumped as much as 3.9 percent on the report in a subdued Mumbai market.

An alliance between the two groups could be completed as soon as mid-August, the Financial Times reported, citing a person close to the matter. Another person told the paper it could take up to the end of the year. Reliance Comm and Etisalat declined to comment on any specific negotiations, the paper said.

A successful outcome hinges on how fast Etisalat can free itself of the stake in Swan Telecom, a joint venture it acquired in 2008, as Indian regulations do not allow one company to own more than 10 per cent in two telecom groups, the paper said.

Several potential suitors cited in media reports based on unnamed sources have denied being in talks with Reliance Comm, controlled by billionaire Anil Ambani.

So far, only Abu Dhabi-based Etisalat has acknowledged that it is considering a deal with Reliance Comm, the only major local cellular carrier without a foreign strategic investor in the world’s fastest-growing mobile market.

Anil Ambani has been in dealmaking mode since ending a pact in May with his long-estranged brother, Mukesh Ambani, that forbade the two from competing on the other’s turf, freeing Anil to bring new investors into his debt-laden company.

That pact had enabled Mukesh Ambani, the world’s fourth-richest man, to assert a right of first refusal two years ago that blocked a deal between Reliance Comm and South Africa’s MTN (MTNJ.J).

Last month, Reliance Comm agreed to merge its telecoms communication towers business with that of GTL Infrastructure Ltd (GTLI.BO) in a deal that a source said would cut its debt by $3.9 billion.

By 0443 GMT, shares in Reliance Comm were up 2.3 percent at 191.40 rupees, while the main BSE index .BSESN was flat.

(Reporting by Pratish Narayanan and Tony Munroe in Mumbai; Stanley Carvalho in Abu Dhabi; Editing by Ranjit Gangadharan)

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UPDATE 1-Etisalat close to buying 26 pct in Reliance Comm-FT

July 20, 2010 By Leave a Comment

MUMBAI, July 19 (Reuters) – Emirates Telecommunications ETEL.AD (Etisalat) is close to buying 26 percent in Indian telecoms Reliance Communications (RLCM.BO), the Financial Times said on Monday, sending Reliance shares up nearly 4 percent.

Citing people familiar with the negotiations, the newspaper said the deal was estimated to be worth $3 billion.

The two groups are also considering merging Reliance Comm, India’s No. 2 mobile operator, with Swan Telecom, the Indian company in which Etisalat holds a 45 percent stake, it said.

Reliance Comm and Etisalat could not be immediately reached for comment.

Shares in Reliance Comm, valued by the market at $8.3 billion, jumped as much as 3.9 percent on the report in a subdued Mumbai market.

An alliance between the two groups could be completed as soon as mid-August, the Financial Times reported, citing a person close to the matter. Another person told the paper it could take up to the end of the year. Reliance Comm and Etisalat declined to comment on any specific negotiations, the paper said.

A successful outcome hinges on how fast Etisalat can free itself of the stake in Swan Telecom, a joint venture it acquired in 2008, as Indian regulations do not allow one company to own more than 10 per cent in two telecom groups, the paper said.

Several potential suitors cited in media reports based on unnamed sources have denied being in talks with Reliance Comm, controlled by billionaire Anil Ambani.

So far, only Abu Dhabi-based Etisalat has acknowledged that it is considering a deal with Reliance Comm, the only major local cellular carrier without a foreign strategic investor in the world’s fastest-growing mobile market.

Anil Ambani has been in dealmaking mode since ending a pact in May with his long-estranged brother, Mukesh Ambani, that forbade the two from competing on the other’s turf, freeing Anil to bring new investors into his debt-laden company.

That pact had enabled Mukesh Ambani, the world’s fourth-richest man, to assert a right of first refusal two years ago that blocked a deal between Reliance Comm and South Africa’s MTN (MTNJ.J).

Last month, Reliance Comm agreed to merge its telecoms communication towers business with that of GTL Infrastructure Ltd (GTLI.BO) in a deal that a source said would cut its debt by $3.9 billion.

By 0443 GMT, shares in Reliance Comm were up 2.3 percent at 191.40 rupees, while the main BSE index .BSESN was flat. (Reporting by Pratish Narayanan and Tony Munroe in Mumbai; Stanley Carvalho in Abu Dhabi; Editing by Ranjit Gangadharan)

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UPDATE 1-Saudi Savola’s Q2 net profit down 2.3 pct

July 19, 2010 By Leave a Comment

RIYADH, July 18 (Reuters) – Saudi-based Savola Group (2050.SE) posted a 2.3 percent drop in second-quarter net profit as capital gains decreased and said it expects its third-quarter net profit to rise by less than 1 percent.

The private conglomerate — active in edible oil, sugar, retail and real estate — made 207.7 million saudi riyals in the three months to end-June down from 212.5 million riyals a year earlier, it said in a statement to the Saudi stock exchange on Sunday.

It was Savola’s lowest quarterly net profit since the first quarter of 2009.

Savola said third-quarter net profit is forecast to reach 280 million riyals up from 277.8 million riyals it reported for the same period in 2009.

With a near 30-percent stake, Savola is also the biggest shareholder in Almarai Co 2280.SE, the Middle East’s biggest dairy firm by market value. [ID:nLDE669012] (Reporting by Souhail Karam; Editing by Dinesh Nair)

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Occidental, Pertamina mull Sonangol’s Iraq deals

July 19, 2010 By Leave a Comment

July 18 (Reuters) – U.S. oil major Occidental Petroleum Corp (OXY.N) and Indonesian state oil firm Pertamina have shown an interest in taking a stake in Sonangol’s two Iraqi oilfield development projects, a company official said Sunday.

“Our proposal will be for Sonangol to have a percentage of 45 percent … in Najmah and Qayara,” Sonangol executive J. da Graca Luis told Reuters in Baghdad on the sidelines of a meeting between oil companies and the Oil Ministry.

“The rest will be for Occidental or Pertamina or whoever,” Luis said.

Sonangol currently has a 75 percent stake in the oilfield projects, with the state oil company holding 25 percent. (Reporting by Rania El Gamal; Writing by Michael Christie; Editing by David Holmes)

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RPT-NZ Oil and Gas says Kupe reserves increased

July 15, 2010 By Leave a Comment

July 14 (Reuters) – Explorer New Zealand Oil and Gas said on Wednesday the estimated reserves of the Kupe oil and gas field, in which it has a 15 percent stake, have been increased.

The oil and gas explorer said its share of the additional reserves has a sales value of nearly NZ$100 million ($71 million).

The review showed gas reserves increased by 8 percent, LPG reserves were higher by 5 percent and light oil reserves were up by 27 percent.

Shares in New Zealand Oil and Gas (NZO.NZ) last traded up 1.6 percent at NZ$1.29, having fallen around 23.2 percent so far this year, compared with a 6.3 percent fall in the benchmark top 50 .NZ50 index.

The Kupe field is 50 percent owned by Origin (ORG.AX), with state-owned power company Genesis Energy holding 31 percent, NZ Oil and Gas 15 percent, and Mitsui E&P Ltd 4 percent. ($1=NZ$1.39)

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NZ Oil and Gas says Kupe reserves increased

July 15, 2010 By Leave a Comment

July 14 (Reuters) – Explorer New Zealand Oil and Gas said on Wednesday the estimated reserves of the Kupe oil and gas field, in which it has a 15 percent stake, have been increased.

The oil and gas explorer said its share of the additional reserves has a sales value of nearly NZ$100 million ($71 million).

The review showed gas reserves increased by 8 percent, LPG reserves were higher by 5 percent and light oil reserves were up by 27 percent.

Shares in New Zealand Oil and Gas (NZO.NZ) last traded up 1.6 percent at NZ$1.29, having fallen around 23.2 percent so far this year, compared with a 6.3 percent fall in the benchmark top 50 .NZ50 index.

The Kupe field is 50 percent owned by Origin (ORG.AX), with state-owned power company Genesis Energy holding 31 percent, NZ Oil and Gas 15 percent, and Mitsui E&P Ltd 4 percent. ($1=NZ$1.39)

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UPDATE 1-Kent Reliance confirms in talks with J.C. Flowers

July 13, 2010 By Leave a Comment

LONDON, July 12 (Reuters) – Kent Reliance Building Society (KRB_p.L) confirmed on Monday it was in talks with U.S. private equity firm J.C. Flowers and Co on creating a joint-venture to bolster its balance sheet while remaining a mutual organisation.

Kent Reliance said the new structure would allow for substantial new capital investment to support the 150-year old building society, which is owned by its members.

Sources told Reuters on Sunday that J.C. Flowers, which previously tried to buy Britain’s stricken bank Northern Rock, would combine a 50 million pound ($75 million) investment with the assets of the British building society in a new vehicle. [ID:nLDE66A0B1]

The building society would retain control with a 51 percent stake, sources familiar with the matter said on Sunday.

Kent Reliance, which is the only building society based in the south-east England county of the same name, made a pretax profit of 2.26 million pounds in 2009 and had assets of 2.26 billion pounds at year-end.

(Reporting by Paul Sandle; Editing by Kate Holton)

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D’Ieteren says unit sale may make sense-paper

July 11, 2010 By Leave a Comment

July 10 (Reuters) – Belgium’s largest car distributor D’Ieteren (IETB.BR) says the sale of its stake in car rental company Avis Europe (AVE.L) “could make sense”, according to Belgian daily De Tijd.

“Many observers say that Avis was chopped in half for unnatural reasons, and it would make sense to merge them again, these observers are right,” the paper’s Saturday edition quoted the company’s chief executive Jean-Pierre Bizet as saying.

D’Ieteren holds a 59.6 percent stake in Avis Europe.

The company was not immediately available for comment. (Writing by Ben Deighton; Editing by Ruth Pitchford)

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Safco Q2 net surges on higher prices, land sale

July 11, 2010 By Leave a Comment

July 10 (Reuters) – Saudi Arabian Fertilizers Co 2020.SE (SAFCO) posted a better-than-expected 89 percent rise in its second-quarter net profit on improved prices for its products and non-recurring proceeds from land sale.

Safco, which produces urea and ammonia, made a net profit of 907 million riyals ($241.9 million) in the three months to end-June compared to 480 million riyals a year-earlier, the firm said in a bourse statement.

This was above the average forecast of 785.7 million riyals in a Reuters survey [ID:nLDE6660XI]

Safco, in which Saudi Basic Industries Corp 2010.SE holds a 42 percent stake, said in April it stood to gain 263.4 million riyals from the sale of two land parcels. [ID:nLDE63C1H9]

(Reporting by Souhail Karam; Editing by Jeremy Laurence)

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GE considers selling Garanti stake in parts: report

July 10, 2010 By Leave a Comment

(Reuters) – General Electric (GE.N) is looking at selling its 20.85 percent stake in Turkish lender Garanti Bank (GARAN.IS) in parts, after an unsuccessful attempt at a block sale, Sabah newspaper said on Friday.

A representative of GE Turkey, Kursat Ozkan, said the sale method to be used was still unclear and work was continuing.

Few banks came forward to publicly declare their interest in the stake after GE said it was up for sale earlier this year.

Analysts speculated that the size of the stake, valued at around $3.8 billion but not giving control of the bank, had limited interest in the sale.

“The block sale of the 20.85 percent stake didn’t look very possible. Therefore, GE gave a message that it might sell the stake in parts. So that method is also being talked about now,” said the unnamed source.

The bank is just under 50 percent publicly traded, while Turkish conglomerate Dogus Group owns 30.5 percent and has first refusal on the stake. It has declined to clarify its intentions.

(Additional reporting by Aali Kandemir; Editing by Simon Jessop)

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UPDATE 1-GE considers selling Garanti stake in parts -paper

July 10, 2010 By Leave a Comment

ISTANBUL, July 9 (Reuters) – General Electric (GE.N) is looking at selling its 20.85 percent stake in Turkish lender Garanti Bank (GARAN.IS) in parts, after an unsuccessful attempt at a block sale, Sabah newspaper said on Friday.

A representative of GE Turkey, Kursat Ozkan, said the sale method to be used was still unclear and work was continuing.

Few banks came forward to publicly declare their interest in the stake after GE said it was up for sale earlier this year.

Analysts speculated that the size of the stake, valued at around $3.8 billion but not giving control of the bank, had limited interest in the sale.

“The block sale of the 20.85 percent stake didn’t look very possible. Therefore, GE gave a message that it might sell the stake in parts. So that method is also being talked about now,” said the unnamed source.

The bank is just under 50 percent publicly traded, while Turkish conglomerate Dogus Group owns 30.5 percent and has first refusal on the stake. It has declined to clarify its intentions. (Additional reporting by Aali Kandemir; Editing by Simon Jessop)

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Indonesia sees Antam buying aluminium firm Inalum

July 10, 2010 By Leave a Comment

July 9 (Reuters) – Indonesia’s state enterprises minister Mustafa Abubakar said on Friday that state miner PT Aneka Tambang Tbk (ANTM.JK) is expected to acquire a 100 percent stake in aluminium firm PT Inalum, with talks ongoing.

Japanese investors hold a 58.8 percent stake in Inalum and the Indonesian state holds the rest. (Reporting by Fathiya Dahrul; Editing by Neil Chatterjee)

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