The Star Online: Business
The Star Online: Business |
- IGB Corp JV invests RM314m in London property
- Cautious start for KLCI as UMW, Genting slip
- Omnicom, Publicis call off proposed US$35b merger
| IGB Corp JV invests RM314m in London property Posted: 08 May 2014 07:07 PM PDT KUALA LUMPUR: IGB Corporation Bhd's 50:50 joint venture company Black Pearl Ltd is buying Blackfriars Ltd, which owns property in southwest London. IGB said on Friday, its unit Verokey Sdn Bhd would finance its 50% investment in Blackfriars by advancing up to £57.131mil (RM314.79mil) to Black Pearl as part payment. "It is the JV's intention to submit and obtain amendments to the current planning permission for the property and as such, no estimated gross development value and total development revenue for the property may be ascertained at this juncture," it said. Verokey owns 50% of Black Pearl and the other 50% stake is owned by Tower Ray Ltd. IGB said it would fund the development cost of the property by bank borrowings in the UK. On Thursday, Black Pearl had entered into a share purchase agreement with Panthermane Ltd and Ostingale Ltd to buy Blackfairs. IGB said Black Pearl was buying 10,000 shares of £1 each in Blackfriars, representing 100% of paid-up of Blackfriars, from the sellers, for £1. Black Pearl would also settle the £65mil which was the outstanding sum owed by the sellers to the National Asset Management Agency for the latter to release its security over the property. Black Pearl would also assume £49.26mil in loans from Panthermane to Blackfriars. |
| Cautious start for KLCI as UMW, Genting slip Posted: 08 May 2014 06:33 PM PDT KUALA LUMPUR: Malaysia's FBM KLCI fell in early Friday trade as investors stayed on the sidelines, in line with the key regional markets due to external worries. At 9.10am, the FBM KLCI was down 2.94 points to 1,859.90. Turnover was 133.32 million shares valued at RM47.56mil. There were 131 gainers, 97 losers and 182 counters unchanged. Reuters reported Asian shares got off to a lacklustre start on Friday after a flat performance on Wall Street, with a tense situation in Ukraine adding to the cautious mood ahead of China inflation data later in the day. JF Apex Research, in its market outlook, said Asian stocks would likely resume their downtrend as investors brace for the latest round of Chinese inflation data. "We expect the KLCI to continue hovering below its resistance of 1,872," it said. At Bursa, plantations fell the most but in thin trade, as Kluang lost 40 sen to RM3.60 and PPB Group 28 sen to RM16.22. UMW lost 26 sen to RM10.56 while Genting Bhd shed seven sen to RM9.75 with 100 shares done. MPHB Capital lost four sen to RM1.90 in active trade after Bank Negara Malaysia did not approve its proposed five sen dividend. Petronas Gas rose the most, up 42 sen to RM23.42 with 200 shares done. Petronas Dagangan rose 10 sen to RM27. Public Bank edged up six sen to RM20.10 with 200 shares traded. |
| Omnicom, Publicis call off proposed US$35b merger Posted: 08 May 2014 06:13 PM PDT LONDON/NEW YORK: The proposed US$35bil merger between US-based Omnicom Group Inc and French rival Publicis Groupe SA has been called off as the challenges in forming the world's largest advertising agency proved too immense for the partners. Presented in July as a merger of equals, the deal began to seriously unwind after Omnicom Chief Executive John Wren expressed doubts about the deal, citing tax complications, during an earnings call in late April. "The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders," Wren and Publicis CEO Maurice Levy said in a joint statement on Thursday. "We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors, but maintain a great respect for one another." The deal announced in July was called off over a number of sticking points including the companies' failure to agree on a chief financial officer who would have taken charge of implementing the deal, a source close to Publicis said. Neither company will pay a termination fee. Another source familiar with the matter said broader cultural differences between the two companies proved to be too difficult to overcome as tension over leadership and strategy came to a head. The boards of the two companies met on Thusday to unwind the deal, a third source said. All three sources requested anonymity because they are not authorized to discuss the matter publicly. The merger called for a 50-50 ownership split of the equity in the new company, Publicis Omnicom Group, with Wren and Levy serving as co-CEOs for 30 months from the closing. One of the sources said that "big egos" were involved. The crucial choice of CFO, a key position that would determine how the company would operate, hewing either to Publicis' centralized structure or Omnicom's less controlling approach to subsidiaries, had been a particular sticking point as the months dragged on. As the companies struggled to keep the merger on track they had faced a fight to retain clients and talent. Wren and Levy, celebrating the deal with champagne toasts in Paris last summer, said it would enable them to better compete with the likes of Google Inc and Facebook Inc which dominate digital advertising, which accounts for nearly a quarter of global marketing spending. - Reuters |
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