Genting Singapore: Bond Conversion Directive

So, it has now become mandatory. No more waiting for another two years.

Genting Singapore has issued a notice to the holders of its S$450m convertible bonds due 2012 for the mandatory conversion of the outstanding bonds into fully paid-up shares at the conversion price of S$0.95.

As at 25 Jan, the outstanding Bonds amounted to S$321.1m.

This mandatory conversion is not entirely surprising given that

i) it satisfies the conditions of the conversion as stipulated in the terms of the bonds and

ii) 40% of Genting Singapore’s proceeds from its S$1.5bn rights issue has been earmarked to repay borrowings.

It is estimated that this mandatory conversion will require about 9% of Genting Singapore’s estimated S$3.5bn post-rights cash balance.

The impact to net gearing is minimal,though.

Walkabout in Aman Suria

I had about 90 minutes to kill before my class. So after a vigorous walk around the Sunwaymas Commercial area which is flanked by the backs of high-cost Aman Suria bungalows on one end and a shanty town of a new village on the other end,I had an early dinner at a restaurant which claimed it cooks the best Hokkien Mee on this side of the world. I was deeply disappointed at being fed some mushy stuff. No coming back to this shop for me.


Then I drove back to Aman Suria to see the changes since I last saw it in 2008. There were some new eateries. Some old ones that were more high-end have folded. There were some Western restaurants and oriental ones too.




Aman Suria has more traffic and people;unlike Sungwaymas which appeared ghostly and dead.







Let us look at some of the images I managed to capture of present day Aman Suria.

MIER: Expect a 3.7% GDP in 2010

Bloomberg reports that Malaysia’s gross domestic product may rebound this year from a contraction in 2009 amid signs the global economy is recovering from the worst recession since the 1930s, the Malaysian Institute of Economic Research (MIER) said.

Southeast Asia’s third-largest economy will probably expand 3.7 per cent this year and 5 per cent in 2011 after shrinking a projected 3.3 per cent in 2009, the partially government-funded research institute said in a statement in Kuala Lumpur today (26 January 2010).

“The services sector will be the pillar of strength amidst a glum manufacturing sector,” the research group said. “However, Malaysia may not regain more strength until the global economy is back on track, which is going to be at a disappointingly slow pace.”

Asia is leading the world’s economic recovery after the region’s policy makers slashed interest rates to unprecedented lows and governments announced more than US$950 billion of stimulus measures. Malaysia’s consumer prices rose in December for the first time in seven months as food and housing costs climbed, and the government has raised its economic growth forecasts on signs of sustainable demand.

Prime Minister Datuk Seri Najib Razak said on January 20 the economy may expand 3.5 per cent or more this year, predicting faster growth than the government forecast in October.

Developing East Asia, which excludes Japan, Hong Kong, Taiwan, South Korea and Singapore, will expand 8.1 per cent this year, faster than a November estimate of 7.8 per cent, the World Bank said on January 21. South Asia will grow 7 per cent in 2010, it said.

Export Growth

Exports of goods and services may grow 9.3 per cent this year after declining 17.5 per cent in 2009, the institute predicts. “Demand recovery as well as improving commodity prices are expected to lift exports growth,” it said.

Bank Negara Malaysia has refrained from following Australia and Vietnam in raising borrowing costs even as commodity prices rise amid a global economic rebound.

Inflation may average 2.3 per cent in 2010 from an expected 0.8 per cent in 2009, the institute predicts. The jobless rate may improve to 4.2 per cent this year from an estimated 4.5 per cent in 2009, it said.

The Beggars: How Nice!

This is one interesting photo you should see. I do not know whether it is real or contrived using computer graphics.

Anyway,a picture tells a zillion words. Notice the cheeky cat.

Dayang:Ready to Shine Again?

In 2009, Dayang shares make a spirited run up because of its potential of doing projects in Brunei. Things are looking up for Dayang again at the beginning of 2010.

It had added another project to its book value. This time around, it is from Petronas Carigali which awarded it a RM8.5 million project to do hook up and commissioning works on the Tangga Barat Drilling Riser Platform, the Tangga Barat Flare Platform and building of bridges for the Tangga Barat Clusters Project Phase 1.

There is no significant contract risk in this project. Yes, shareholders will benefit from this project beginning 2010.