News of the Day - 14 April 2015

• RHB Capital to restructure and raise RM2.5bn 

RHB Capital Restructuring

RHB Capital Bhd (RHBCap) is planning a rights issue to raise up to RM2.5bn under a proposed restructuring that will see the RHB Banking Group moving towards a "bank holding company" structure, in line with major banking groups across Asean. "The proposed rights issue will enable the company to raise funds to further strengthen the capital position of RHB Bank, via the capital injection, to support the continuous business growth of RHB Bank Group and meeting the requirements of Basel III," it told Bursa Malaysia. RHBCap is also planning to transfer its listing status to RHB Bank under a proposed distribution and capital repayment exercise to "enable RHB Bank Group to gain direct access to the capital markets to raise funds for its continued growth".

Please refer to The Star Online for more details.

Please refer to CIMB Research for analysis on the restructuring. CIMB Research's advice is to "Stay invested given the positive earnings outlook. Upfront, it will have to bear the dilutive effect of the RI, but this could be partly offset by tax savings."

• TM and Digi launch new mobile app 

Telekom Malaysia (TM) and DiGi Telecommunications launched HyppTV Everywhere, based on TM's IPTV offerings to DiGi subscribers. The collaboration is based on a revenue-share model. Under the deal, DIGi prepaid and postpaid customers can download the HyppTV Everywhere application and access TM's IPTV programming for between RM10 and RM15 per month, without any data charge. They can watch HyppTV Everywhere's selection of TV programming until the end of the promotional period on 30 June. Data charges will apply from July onwards. 

• AirAsia to list Indonesia, Philippines units 

AirAsia Bhd will list its Indonesia and Philippines businesses, group CEO Tony Fernandes said on Monday, without giving any timeline or value for the exercise. The plan for both IPOs will depend on getting the respective board approvals, Fernandes said on Twitter. He said business in both the Philippines and Indonesia was doing very well, with great support from both governments. "We can confirm today that AirAsia Indonesia and AirAsia Philippines will be IPO. Subject to respective board approvals," Fernandes said. AirAsia owns 49% of Indonesia AirAsia and 40% of AirAsia Philippines. AirAsia aborted a plan to list its Indonesian arm last year as the unit was performing poorly, Fernandes was quoted saying previously by local media.

• Petronas Chemical plans RM3bn capex this year 

Petronas Chemicals Group Bhd (PCG) has set aside RM3bn in capital expenditure (capex) for 2015, of which bulk of it will be for the Sabah Ammonia Urea (Samur) project. "The Samur project is expected to be completed and commissioned by the end of the first quarter of 2016. Upon completion, PCG will be the second largest urea producer in the region," chairman Wan Zulkiflee Wan Ariffin said. For now, the Samur project has been 90% completed.