/raid1/www/Hosts/bankrupt/TCRAP_Public/020730.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, July 30, 2002, Vol. 5, No. 149
Headlines
A U S T R A L I A
AUSTRALIAN PLANTATION: Subject to a Deed of Company Arrangement
CENTRAL NORTH: Fletcher Challenge Obtains Acquisition Consent
ENERGY WORLD: PEL Merger Likely to be Canceled
OPEN TELECOMMUNICATIONS: Employees Report Back to Work
WESTERN METALS: Debt Restructuring Document Executed
WESTERN METALS: Posts Satisfaction of Restructuring Fees Notice
C H I N A & H O N G K O N G
BRIGHTWAY INTERNATIONAL: Petition to Wind Up Pending
CIL HOLDINGS: Appoints Broker for Odd Lot Arrangement Services
GOLDEN PLAZA: Winding Up Petition Set for Hearing
ORIENTAL UNION: Narrows Operations Loss to HK$55,221M
PINK BOX: Faces Winding Up Petition
REXCAPITAL INTERNATIONAL: Consolidates Shares
SUN MEDIA: Releases Results Announcement Summary
TARZAN CONTRACTORS: Petition to Wind Up Set for August
WAH TAK: Incurs Loss of HK$174,108M
XIAMEN MANDARIN: Winding Up Petition to be Heard
I N D O N E S I A
ASTRA INTERNATIONAL: Seeks Debt Rescheduling
ASTRA INT'L: Offering Rp200B Bond to Cover Operational Growth
TELEKOMUNIKASI SELULER: Telkom to Dispose of Shares Soon
J A P A N
DAIEI INC: Weak Summer Gift Season Hurting Sales
FUJITSU LTD: Unveils FY2002 Q1 Financial Results
HITACHI LTD: Develops FMC Mobile Commerce Extension Standard
HITACHI LTD: Signs IT Outsourcing Agreement With UFJ Bank
MERRILL LYNCH: Places Employee on Administrative Leave
MITSUBISHI TOKYO: Unveils FY02 Q1 Results Under Japanese GAAP
NISSAN MOTOR: Reaches Agreement to Sell Unit to JP Morgan
NTT DOCOMO: Enters Partnership With Lucky Strike
SUMITOMO REALTY: JCR Assigns Rating to BBB
K O R E A
DAEWOO ELECTRONICS: Government Will Not Refund Tax Paid
HYNIX SEMICONDUCTOR: FSC Reviews Asset Sale, Survival Options
HYUNDAI OILBANK: Issues W200B Corporate Bonds
SEOUL BANK: Hana, Lone Star, JP Morgan Complete Due Diligence
M A L A Y S I A
ANSON PERDANA: Court Extends Restraining Order Until Jan 2003
BERJAYA SPORTS: Posts Shares Buy Back Notice
GLOBAL CARRIERS: Proposed Revised Plan Implementation Extended
MOL.COM BERHAD: Silicon Acquisition Proposal Canceled
PANTAI HOLDINGS: Warrants Right Issue Oversubscribed
SENG HUP: Independent, Non-Exec Chairman Bin Hamidi Resigns
SPORTMA CORPORATION: Provides Defaulted Payment Status Update
TALAM CORPORATION: Shareholders OK All Resolutions at AGM
TIMBERMASTER INDUS: Finds White Knight to Aid in Debt Workout
WEMBLEY INDUSTRIES: Changes Registered Address
P H I L I P P I N E S
DMCI HOLDINGS: Clarifies Business World Report
FIRST PHILIPPINES: PhilRatings LTCP Rating Under Review
PHILIPPINE LONG: Clears Amended By-Laws Issue
PHILIPPINE LONG: Listing of Additional Shares Set for July 26
PHILIPPINE LONG: Secures JPY9.76B JBIC Overseas Investment Loan
PHILIPPINE LONG: First Pac Aims to Complete Sale by Sept 30
S I N G A P O R E
CHARTERED SEMICONDUCTOR: Extends Losses on TSMC Outlook, Nasdaq
DATACRAFT ASIA: Restructuring Subsidiaries
EXCEL MACHINE: Disposing of US Unit To Reduce Debt
HONG LEONG: Reconstructs Shareholding, Group Structure
L&M GROUP: Posts Notice of Shareholder's Interest
T H A I L A N D
SOCON ENGINEERING: Business Reorganization Petition Filed
THAI PETROCHEMICAL: Court Rejects Ex-CEO's Petition to Oust EPL
TPI POLENE: Issues Q202 Unreviewed Operating Results
- - - - - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN PLANTATION: Subject to a Deed of Company Arrangement
---------------------------------------------------------------
Integrated Tree Cropping Limited (ITC) announced Friday that,
subject to finalization of documentation which ITC and the
Administrator, Mr Mervyn Kitay of Grant Thornton, Perth expect
to be finalized soon, all remaining conditions precedent for its
transaction with Australian Plantation Timber Limited (subject
to Deed of Company Arrangement)(APT) have been met or waived. IT
and the Administrator are confident that the way has now been
cleared for the transaction to complete shortly.
The boards of ITC and APT are working with the Administrator to
complete the necessary arrangements as soon as possible. The
transaction will see ITC emerge with 50% of APT and shares in
APT being re-listed on the ASX.
For further information contact
Tony Jack Peter Hatfull
MANAGING DIRECTOR COMPANY SECRETARY
Direct Line: 08 9389 0270 Direct Line: 08 9389 0211
CENTRAL NORTH: Fletcher Challenge Obtains Acquisition Consent
-------------------------------------------------------------
Fletcher Challenge Forests announced Monday that it had obtained
the consent of the Overseas Investment Commission to the
acquisition of the assets of the Central North Island Forest
Partnership, and that Land Information New Zealand had agreed to
the assignment of the Crown Forestry Licences (under which the
bulk of the CNIFP forests are held) to the Company.
The remaining regulatory approval being sought by Fletcher
Challenge Forests is clearance under the Commerce Act. A
response from the Commerce Commission is expected prior to the
Special Meeting of Shareholders on Tuesday 13 August 2002.
ENERGY WORLD: PEL Merger Likely to be Canceled
----------------------------------------------
The Directors of Energy World Corporation Ltd (EWC) have been
advised by the Directors of Pacific Energy Limited (PEL) that
they had requested the Independent Experts (KPMG Corporate
Finance (Aust) Pty Ltd) to review its report due to recent
movements in the Strategic Minerals Corporation NL (SMC) share
price in light of the fact that PEL owns 41,225,623 shares in
SMC, the reduced rates that the off-take for the Blue Rock Hydro
Electric power plant has proposed, and also EWC's recent
announcement that it has now reached agreement with the
Commonwealth Bank of Australia (CBA) to permit repayment of its
outstanding obligations to CBA in full.
The Directors of PEL have now advised EWC that KPMG Corporate
Finance(Aust) Pty Ltd have concluded that the terms of the
proposed merger with EWC do not provide an adequate premium to
PEL shareholders and optionholders and therefore the merger,
based on up-to-date information, is no longer in the best
interests of PEL shareholders and optionholders.
Accordingly, KPMG Corporate Finance have withdrawn their consent
to their report dated 3 June 2002 being included in the
Information Memorandum lodged with the ASIC and ASX on 19 June
2002 and the Supreme Court of Western Australia on 28 June 2002.
The report dated 3 June 2002 had concluded that the merger with
EWC was in the best interests of the PEL shareholders and
optionholders.
Shareholders will be kept informed of further developments on
this matter.
OPEN TELECOMMUNICATIONS: Employees Report Back to Work
------------------------------------------------------
The administrator of Open Telecommunications Limited, Mr Robert
Whitton of Deloitte Touche Tohmatsu, has secured the commitment
of key customers enabling approximately 70 employees to return
to work.
Mr Whitton said he had reached agreement with Comindico and LG
for payments to be made to Open Tel to continue development of
their SoftSwitch technology.
He said he had also been able to negotiate the continuance of a
project for Malaysian client, Maxis.
"I am pleased with the outcome of the negotiations," Mr Whitton
said.
"The continued support of customers will mean about 70 employees
based in Sydney will return to work today (Monday). I hope to
continue negotiations over the next few days to enable further
employees based in Melbourne to return to work. For the short
term at least, Open Tel can continue trading while expressions
of interest in the company and its businesses are sought," he
said.
Mr Whitton said with the strong interest he had received in the
businesses so far, he hoped to finalize the sale process by the
end of August.
WESTERN METALS: Debt Restructuring Document Executed
----------------------------------------------------
Western Metals Limited finally announced that execution of
formal documentation and completion of its debt restructure
arrangements with its major financiers was effected on 26
July 2002.
A summary of the more material aspects of what is a complex
series of transactions is set out below:
1. OVERVIEW
The Western Metals Group "WML" has reached 'an accord with its
major financiers (Noteholders and Hedge Counterparties)
rescheduling the Group's short to medium term debt payment
obligations, and which, against an ongoing budget and production
performance projection over the next 3 years, will enable the
Group to continue its mining operations in the ordinary course,
including the capital expenditure commitment to the Mt Gordon
Stage 2 project.
The overall accord includes:
* debt restructure and repayment deferral;
* capital injection by way of interest/equity conversion
(subject to WML - Shareholder approval) and proposed rights
issue to shareholders;
* debenture charge security being granted to a security
trustee for the benefit of the major financiers;
* waiver of prior payment and covenant defaults by the major
financiers;
* provision of an AUD$7.5 million standby working capital
facility to assist in smoothing cashflow;
* 20:1 share consolidation to restructure WML's capital base.
DEBT DEFERRAL
The major financiers have agreed to an initial debt plan period
to 31 October 2003, with the only scheduled outstanding
obligations of the Group to its major financiers at the end of
that period being:
the Noteholders (US$185 million then remaining outstanding, down
from US$195million);
Hedge counterparty residual zinc metal calls
All outstanding foreign exchange obligations will be settled by
31 October 2003.
Ongoing principal repayments to the Noteholders continue after
31 October 2003 at the rate of US$15 million per half year until
15 June 2006 leaving a final residual of US$140 million then
clue. In the event of significant improvements in relevant base
metal prices that would allow accelerated debt repayments, the
Noteholders have the right to review and accelerate the
repayment schedule.
In addition WML will settle its interest obligation to the
Noteholders (US$18 million approximately) for the period 1 July
2002 to 30 June 2003 by an interest/equity conversion noted
below.
For the period 1 November 2003 to 30 June 2005 an interest rate
adjustment mechanism allows for additional interest of up to
1.5% pa to be paid to the Noteholders if the $A weighted average
price of zinc, copper and lead for this period exceeds the long
term average price for these metals.
3. COVENANT AND PRIOR DEFAULT WAIVERS
During the period to 31 October 2003 the major financiers each
waive a number of existing scheduled payments and financial and
other covenants defaults to allow the initial debt plan.
WML is confident of being able to negotiate appropriate ongoing
covenants which will apply thereafter.
4. SECURITY
The Group has given debenture charges in favor of a security
trustee and cross guarantees for the benefit of these major
financiers. Inter creditor arrangements have been agreed between
financiers.
There are fallback intercreditor provisions if for any reason
the overall debt restructure and initial debt plan should not
succeed in the short term.
5. EQUITY/CAPITAL ARRANGEMENTS
There are four elements of the transaction which impact upon
WMC's capital base:
(a) an initial issue of approximately 121 million WML shares
to the Noteholders (13% of WML's then diluted equity base) in
consideration of the Noteholders' ongoing forbearance in the
terms of the debt restructure arrangements (and in lieu of other
considerations previously contemplated);
(b) the issue of approximately 621 million shares (together
with approximately 207 million options exerciseable by 30 June
2007 with an exercise price of the lesser of 5 cents, the
weighted average share price of WML shares for the 5 days
loading up to the shareholders EGM, and the rights issue price -
see below) to the Noteholder subject to WML Shareholder approval
(in compliance with both ASIC and ASX requirements) and any
requisite FIRB clearance, in satisfaction of interest otherwise
accruing to the Noteholders from 1 July 2002 to 30 June 2003 -
ie approximately US$18 million. This is anticipated to result in
the Noteholders then holding approximately 47% of WML's diluted
equity base pending the takeup of rights under the proposed
Rights Issue to WML Shareholders. Limited voluntary escrow
arrangements have also been committed to by the Noteholders to
reasonably assure market confidence in the Noteholders' ongoing
shareholding. The failure by WML to procure FIRE clearance and
WML shareholder approval will entitle the Noteholders to
terminate the debt restructure arrangements.
(c) WML undertaking best endeavors to raise additional equity
from the market of approximately AUD$20 million by way of a
renounceable 1:2 pro-rate rights issue to shareholders priced
commensurately with the pricing of the interest/equity
conversion by the Noteholders referred to above and including a
"free" option on the same terms as those to the Noteholders as
referred to above on a 1:3 basis for rights exercised, to give
other shareholders the opportunity to participate in taking up
further equity. Shares issued to the Noteholders under the
interest/equity conversion in (b) above will not participate in
the rights issue.
(d) The consolidation of WML shares on a 20:1 basis subject
to WML shareholder approval (expected to be at the AGM of the
Company later in the year).
A prospective timetable going forward is anticipated to reflect:
* by early August 2002 - issue of notice of EGM together with
supporting documentation;
* by mid September 2002 - FIRB clearance secured and
Extraordinary General Meeting of shareholders of WML hold:
* by mid/late September 2002 - lodgment with ASIC of
prospectus for renounceable pro rata rights issue; and
* by late October/early November 2002 closure of renounceable
pro rate rights issue.
The Company is pleased to now be in a position to concentrate on
its core operations and the delivery of value from its world
class mineral resources and assets for the benefit of all its
stakeholders.
The Company will continue to keep the market informed of
developments in a timely manner.
WESTERN METALS: Posts Satisfaction of Restructuring Fees Notice
---------------------------------------------------------------
Western Metals Limited posted this notice:
APPLICATION FOR QUOTATION OF ADDITIONAL SECURITIES AND AGREEMENT
Information or documents not available now must be given to ASX
as soon as available. Information and documents given to ASX
become ASX's property and may be made public.
Introduced 1/7/96. Origin Appendix 5. Amended 1/7/98, 1/9/99,
1/7/2000.
Name of Entity
Western Metals Limited
ABN
69 009 150 618
We (the entity) give ASX the following information.
PART 1 - ALL ISSUES
You must complete the relevant sections (attach sheets if
there is not enough space).
1. Class of securities issued Ordinary fully paid shares
or to be issued
2. Number of securities issued 121,358,721
or to be issued (if known)
or maximum number which
may be issued
3. Principal terms of the securities n/a
(eg, if options, exercise price
and expiry date; if partly paid
securities, the amount
outstanding and due dates for
payment; if convertible securities,
the conversion price and dates
for conversion)
4. Do the securities rank equally Yes, however shares will
in all respects from the date be subject to escrow for a
of allotment with an existing period of 12 months. Details
class of quoted securities of this is to be considered
If the additional securities by shareholders at a
do not rank equally, please meeting proposed to be held
state: mid September 2003.
* the date from which they do
* the extent to which they
participate for the next
dividend, (in the case of
a trust, distribution) or
interest payment
* the extent to which they do
not rank equally, other than
in relation to the next
dividend, distribution or
interest payment
5. Issue price or consideration Deemed price 5c per share
6. Purpose of the issue (if In satisfaction of debt
issued as consideration for restructure fees totaling
the acquisition of assets, $6,067,936
clearly identify those
assets)
7. Dates of entering securities 26/07/02
into uncertified holdings
or dispatch of certificates
NUMBER CLASS
8. Number and class of all 930,416,862 Ordinary fully paid
securities quoted on shares
ASX (including the
securities in clause
2 if applicable)
NUMBER CLASS
9. Number and class of all 1,680,000 Unlisted options (83
securities not quoted cents expiring
on ASX (including the 8/12/2002)
securities in clause 2 2,992,500 Unlisted options (62c
if applicable) expiring 15/11/2004)
10.Dividend policy (in the case The company does not
of a trust, distribution anticipate paying a dividend
policy) on the increased in the next 2 years.
capital (interests)
PART 2 - BONUS ISSUE OR PRO RATA ISSUE
Items 11 to 33 are Not Applicable
PART 3 - QUOTATION OF SECURITIES
You need only complete this section if you are applying for
quotation
of securities
34. Type of securities (tick one)
(a) x Securities described in Part 1
(b) All other securities
Example: restricted securities at the end of the escrowed
period, partly paid securities that become fully paid, employee
incentive share securities when restriction ends, securities
issued on expiry or conversion of convertible securities
Entities that have Ticked Box 34(a)
Additional Securities Forming a New Class of Securities
(If the additional securities do not form a new class, go to 43)
Tick to indicate you are providing the information or documents
35. If the securities are equity securities, the names of
the 20 largest holders of the additional securities,
and the number and percentage of additional securities
held by those holders
36. If the securities are equity securities, a distribution
schedule of the additional securities setting out the
number of holders in the categories
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
37. A copy of any trust deed for the additional securities
(now go to 43)
Entities that have Ticked Box 34 (b)
Items 38 to 42 are Not Applicable
ALL ENTITIES
Fees
43. Payment method (tick one)
Cheque attached
Electronic payment made
Note: Payment may be made electronically if Appendix 3B is
given to ASX electronically at the same time.
Periodic payment as agreed with the home branch has been
arranged
Note: Arrangements can be made for employee incentive
schemes that involve frequent issues of securities.
QUOTATION AGREEMENT
1. Quotation of our additional securities is in ASX's absolute
discretion. ASX may quote the securities on any conditions it
decides.
2. We warrant the following to ASX.
* The issue of the securities to be quoted complies with
the complies with the law and is not for an illegal purpose.
* There is no reason why those securities should not be
granted quotation.
* An offer of the securities for sale within 12 months
after their issue will not require disclosure under section
707(3) or section 1012C(6) of the Corporations Act.
* Section 724 or section 1016E of the Corporations Act
does not apply to any applications received by us in relation to
any securities to be quoted and that no-one has any right to
return any securities to be quoted under sections 737, 738 or
1016F of the Corporations Act at the time that we request that
the securities be quoted.
* We warrant that if confirmation is required under
section 1017F of the Corporations Act in relation to the
securities to be quoted, it has been provided at the time that
we request that the securities be quoted.
* If we are a trust, we warrant that no person has the
right to return the securities to be quoted under section 1019B
of the Corporations Act at the time that we request that the
securities be quoted.
3. We will indemnify ASX to the fullest extent permitted by law
in respect of any claim, action or expense arising from or
connected with any breach of the warranties in this agreement.
4. We give ASX the information and documents required by this
form. If any information or document not available now, will
give it to ASX before quotation of the securities begins. We
acknowledge that ASX is relying on the information and
documents. We warrant that they are (will be) true and complete.
================================
C H I N A & H O N G K O N G
================================
BRIGHTWAY INTERNATIONAL: Petition to Wind Up Pending
----------------------------------------------------
The petition to wind up Brightway International Investment
Limited is scheduled to be heard before the High Court of Hong
Kong on August 7, 2002 at 9:30 am.
The petition was filed with the court on April 30, 2002 by Ho
Kai Leung of Room 2116, 21/F., Po Tak House, Po Lam Estate,
Tseung Kwan O, Kowloon, Hong Kong.
CIL HOLDINGS: Appoints Broker for Odd Lot Arrangement Services
--------------------------------------------------------------
CIL Holdings Limited announced that in order to alleviate the
difficulties arising from the existence of odd lots of
Consolidated Shares, the Company has arranged for a broker to
match the sales and purchases of odd lots of Consolidated Shares
for Shareholders who become holders of odd lots as a direct
consequence of the Adjustment Proposal.
Holders of odd lots of Consolidated Shares who wish to take
advantage of this facility may contact Ms. Chow King Ling of
ICEA Securities Limited at telephone number: (852) 2115 8820
from 25th June 2002 to 31st July 2002 (both days inclusive).
Holders of Shares in odd lots should note that the matching of
odd lots is not guaranteed. They are advised to consult their
professional advisers if they are in doubt about the facility
described above.
GOLDEN PLAZA: Winding Up Petition Set for Hearing
-------------------------------------------------
The petition to wind up Golden Plaza Development Limited is
scheduled for hearing before the High Court of Hong Kong on
August 14, 2002 at 9:30 am.
The petition was filed with the court on May 23, 2002 by Bank of
China (Hong Kong) Limited whose registered office is situated at
14th Floor, Bank of China Tower, No. 1 Garden Road, Central,
Hong Kong.
ORIENTAL UNION: Narrows Operations Loss to HK$55,221M
-----------------------------------------------------
Oriental Union Holdings Limited posted its interim auditors'
report with a year end date of 31/3/2002:
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/4/2001 from 1/4/2000
to 31/3/2002 to 31/3/2001
('000) ('000)
Turnover : 69,306 137,350
Profit/(Loss) from Operations : (55,221) (60,461)
Finance cost : NIL (331)
Share of Profit/(Loss) of Associates: (5,144) (1,106)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (47,188) (130,321)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (3.8 cents) (11.2
cents)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (47,188) (130,321)
Final Dividend per Share : NIL NIL
(Specify if with other options) : - -
B/C Dates for Final Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remarks:
(1) ADOPTION OF NEW AND REVISED STATEMENTS OF STANDARD
ACCOUNTING PRACTICE
In the current year, the Group has adopted for the first time a
number of new and revised Statements of Standard Accounting
Practice (SSAP's) issued by the Hong Kong Society of
Accountants. Adoption of these SSAPs has led to a number of
changes in the Group's accounting policies.
The adoption of these new and revised SSAPs has resulted in the
following changes to the Group's accounting policies.
Leases
SSAP 14 (Revised) "Leases" has introduced some amendments to the
basis of accounting for leases, and to the disclosures specified
for the Group's leasing arrangements. These changes have not
had any material effect on the results for the current or prior
accounting periods. Disclosures for the Group's leasing
arrangements have been modified so as to comply with the
requirements of SSAP 14 (Revised). Comparative amounts and
disclosures have been restated in order to achieve a consistent
presentation.
Segment reporting
In the current year, the Group has followed the basis of
identification of reportable segments to that required by SSAP
26 "Segment reporting". Segment disclosures for the year ended
31 March 2001 have been amended so that they are presented on a
basis consistent with that for the current year.
Goodwill
In the current year, the Group has adopted SSAP 30 "Business
combinations" and has elected not to restate the goodwill
previously written off against reserves.
Goodwill/negative goodwill arising on acquisition prior to 1
April 2001 continues to be held in reserves and will be
charged/credited to the income statement at the time of disposal
of the relevant subsidiary or associate, or at such time as the
goodwill is determined to be impaired.
Goodwill arising on acquisition after 1 April 2001 is presented
as an asset and will be amortized on a straight line basis over
its estimated useful life. Negative goodwill arising on
acquisition after 1 April 2001 is presented as a deduction from
assets and will be released to income based on an analysis of
the circumstances from which the balance resulted.
(2) 2002 2001
HK$'000 HK$'000
Turnover
- Continuing 69,306 114,925
- Discontinuing - 22,425
-------- -------
69,306 137,350
======== =======
Segment results
- Continuing (22,063) (8,559)
- Discontinuing - (745)
-------- -------
(22,063) (9,304)
======== =======
(3) LOSS PER SHARE
The calculation of the basic loss per share is computed based on
the following data:
2002 2001
HK$'000 HK$'000
Loss:
Net loss for the year and loss for the
purpose of basic loss per share (47,188) (130,321)
======== =========
Number of shares:
Weighted average number of shares for
the purpose of basic (loss) earnings
per share 1,245,689,000 1,165,314,000
============= ============
Diluted loss per share has not been presented as the exercise of
the Company's outstanding share options and warrants would
result in a decrease in the loss per share for both years.
(4) (Loss) Profit after Taxation & MI has been arrived at after
(charging) crediting the followings:
2002 2001
HK$'000 HK$'000
Reserve realized upon expiry of warrants 23,322 -
Impairment losses recognized in relation
to an associate - (66,857)
======== ========
PINK BOX: Faces Winding Up Petition
-----------------------------------
The petition to wind up Pink Box International Holding Company
Limited will be heard before the High Court of Hong Kong on
August 7, 2002 at 10:30 am.
The petition was filed with the court on May 10, 2002 by Ho Mei
Teng of Flat 4, 13/F., Wing Yan House, Tung Yan Court, Sai Wan
Ho, Hong Kong.
REXCAPITAL INTERNATIONAL: Consolidates Shares
---------------------------------------------
Rexcapital International Holdings Limited, formerly known as
HiNet Holdings Limited, requested market participants to note
that the ordinary shares of HK$0.01 each (Old Shares) in the
capital will be consolidated into ordinary shares of HK$0.01
each (after Capital Reduction) (New Shares) on the basis of 20
into 1 subject to its shareholders' approval at the Special
General Meeting held on 29 July 2002.
Upon the proposals becoming effective, a temporary counter under
stock code 2952 and stock short name "REXCAPITAL" will be
established for trading in board lots of 2,000 New Shares each
to replace the present counter (stock code: 155) for trading in
board lots of 40,000 Old Shares each effective from today, 30
July 2002.
SUN MEDIA: Releases Results Announcement Summary
------------------------------------------------
Sun Media Group Holdings Limited released its results
announcements summary year ending 31 March 2002:
Currency: HK$
Auditors' Report: Unqualified
Review of Interim Report by: N/A
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/4/2001 from 1/4/2000
to 31/3/2002 to 31/3/2001
('000) ('000)
Turnover : 246,906 96,308
Profit/(Loss) from Operations : (71,650) (125,966)
Finance cost : (2,926) (1,842)
Share of Profit/(Loss) of Associates: - -
Share of Profit/(Loss) of
Jointly Controlled Entities : - -
Profit/(Loss) after Tax & MI : (69,616) (125,832)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (0.95 cent) (2.24
cents)
-Diluted : - -
Extraordinary (ETD) Gain/(Loss) : - -
Profit/(Loss) after ETD Items : (69,616) (125,832)
Final Dividend per Share : NIL NIL
(Specify if with other options) : - -
B/C Dates for Final Dividend : -
Payable Date : -
B/C Dates for Annual General Meeting: 19/8/2002- 21/8/2002 bdi.
Other Distribution for Current Period: -
B/C Dates for Other Distribution : -
Remark:
Profit/(Loss) from Operations
Continuing operations (71,053)
Discontinued operations (597)
----------
(71,650)
=========
TARZAN CONTRACTORS: Petition to Wind Up Set for August
------------------------------------------------------
The petition to wind up Tarzan Contractors Limited is set for
hearing before the High Court of Hong Kong on August 28, 2002 at
9:30 am. The petition was filed with the court on June 6, 2002
by Sit Cho Hing of Room 3718, Shui Sing House, Tin Shui Estate,
Tin Shui Wai, New Territories, Hong Kong.
WAH TAK: Incurs Loss of HK$174,108M
-----------------------------------
Wah Tak Fung Holdings Limited announced on 25 July 2002:
(stock code: 297)
Year end date: 31/3/2002
Currency: HKD
Auditors' Report: Unqualified
Review of Interim Report by: N/A
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/4/2001 from 1/4/2000
to 31/3/2002 to 31/3/2001
('000) ('000)
Turnover : 58,310 130,936
Profit/(Loss) from Operations : (114,376) (200,063)
Finance cost : (56,895) (101,863)
Share of Profit/(Loss) of Associates: (2,814) (8,761)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (174,108) (323,320)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (8.2 cents) (23.7
cents)
-Diluted : (8.2 cents) (23.7 cents)
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (174,108)
(323,320)
Final Dividend per Share : Nil Nil
(Specify if with other options) : N/A N/A
B/C Dates for Final Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remarks:
(1) COMPARATIVE FIGURES
Certain comparative figures have been reclassified to
conform with the current year's presentation.
(2) LOSS PER SHARE
The calculation of basic loss per share is based on the
net loss for the year of approximately HK$174,108,000 (2001:
HK$323,320,000) and on the weighted average of 2,135,225,748
(2001: 1,365,365,431) shares in issue.
The computation of diluted loss per share for the year ended
March 31, 2002 and 2001 does not assume the exercise of the
conversion rights attached to the Company's outstanding share
options, convertible redeemable non-voting preference shares and
debenture as these conversions would result in a decrease in
loss per share.
XIAMEN MANDARIN: Winding Up Petition to be Heard
------------------------------------------------
The petition to wind up Xiamen Mandarin (Hong Kong) Limited is
scheduled to be heard before the High Court of Hong Kong on
September 18, 2002 at 9:30 am.
The petition was filed with the court on June 25, 2002 by Bank
of China (Hong Kong) Limited whose registered office is situated
at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central,
Hong Kong.
=================
I N D O N E S I A
=================
ASTRA INTERNATIONAL: Seeks Debt Rescheduling
--------------------------------------------
PT Astra International is seeking an agreement with its
creditors to reschedule US$901.6 million in debt, including
Rp1,067 billion in local currency, from 2006 to 2010-2011,
AsiaPulse reported Monday.
According to Astra President Budi Setiadharma, in addition to
debt rescheduling the company will likely need to launch right
issue or asset divestment to cope with its debt problems.
However, he added that there has been no decision on the option
to be taken as it has yet to be discussed with the creditors
expected in July 31 in Singapore.
Astra is scheduled to pay Rp133 million and Rp165 billion in
debt installment in December.
Before the end of September, Astra hopes to come up with a
decision on what option would it take to cope with the debt
repayment, Budi concluded.
According to DebtTraders, Astra Overseas Finance's 4.809%
floating rate notes due on 2005 (ASII05IDS1) are trading between
77 and 78. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=ASII05IDS1
ASTRA INT'L: Offering Rp200B Bond to Cover Operational Growth
-------------------------------------------------------------
PT Federal International Finance (FIF), a subsidiary of PT Astra
International Tbk, its main activities in consumer financing,
intends to make a public offering of Rp200 billion bond to cover
its growth in retail financing of motorcycles.
"After deduction of emission cost, management will utilize the
funds to finance motorcycle retail credit in line with the main
business and financial policies of the company," stated FIF
President Director, Ida Purwaningsih Lunardi, in a press
conference held immediately after the Public Expose for the
bonds public offering on Wednesday, 24 July 2002.
She is confident that the increasing need for motorcycles in
Indonesia, which has reached an average of 93% for the past
three years, and the experience as well as reputation of FIF, is
a winning combination which will provide high return for the
company and eventually the investors. FIF was established in
1989 and specializes in financing Honda motorcycles.
FIF is currently owned by PT Astra International Tbk (99,99%)
and PT Aryaloka Sentana (0,01%). "With 60 branches and 136
points of service in 25 provinces and the support of 2,378
personnel, FIF possesses an integrated online system," she
explained.
In the recent years, said the President Director, FIF had shown
remarkable growth. Total income had increased significantly
within the last three years, i.e. from Rp281 billion in 1999 to
Rp323 billion in 2000 and Rp414 billion in 2001. "From January
to May 2002, FIF has booked an income of Rp261 billion," said
Ida P. Lunardi.
In line with the increase of total income, FIF has recorded
significant increase in net profit, i.e. from Rp6 billion in
1999, Rp48 billion in 2000 and Rp75 billion in 2001. "For the
first five months of 2002, FIF has recorded a net profit of Rp54
billion. The achievement was partly due to the improvement of
motorcycle market in Indonesia."
Currently, the new credit booking of FIF has reached an average
of 30,000 units Honda motorcycles per month, which is the result
of collaboration with 592 Honda dealers. "We are also servicing
453,000 active customers, while having total customer database
of close to 1 million."
In its day-to-day operation, FIF has 196 outlets in 24
provinces. So, the credit risk is widely spread. To support the
operation, FIF has a capable system and organization of:
* Integrated online system facilitates a strong operation
control
* Competent and motivated people with high team spirit
* Transparent organization
* Management commitment for steady growth
Ida P. Lunardi explained that to support its growth, FIF is
planning to issue an amortizing bond of Rp200 billion to be
listed in Surabaya Stock Exchange. "We expect that this public
offering will be one of the best investment alternatives for
individual as well as institutional investors." FIF President
Director added.
Information on the bonds
1. Consisting of two series
- Seri A Bond, amounting to minimum Rp100 billion, with
quarterly amortization of 12,5% from principal value, the first
installment will be due on the fifth quarter.
- Seri B Bond, amounting to maximum Rp100 billion, with
annual amortization of 50% from principal value, the first
installment will be due at the end of the second year.
2. Tenor of 3 (three) years
3. Fixed Interest Rate
4. Quarterly interest payment
5. Collateralized by accounts receivable amounting to 110% of
the outstanding principal
6. Bonds will be listed in Surabaya Stock exchange
Capital Market Professional & Supporting Parties:
1. Lead Underwriter :PT Bahana Securities
2. Public Accountant : Drs. Hadi Sutanto & Rekan
(Pricewaterhouse Coopers)
3. Legal Counsel : Thamrin & Rachman
4. Notary Public : Fathiah Helmi SH
5. Trustee : PT Bank Rakyat Indonesia (Persero)
6. Paying Agent : PT Kustodian Sentral Efek Indonesia
TELEKOMUNIKASI SELULER: Telkom to Dispose of Shares Soon
--------------------------------------------------------
PT Telekomunikasi Indonesia Tbk planned to sell its remaining
stake in the cellular phone operator PT Telekomunikasi Seluler
Indonesia (Komselindo) after a planned debt-to-equity swap and
capital injection in the cellular firm, IndoExchange reports,
citing Telkom President Director Kristiono.
"We will inform the shareholders of Komselindo regarding
Telkom's plan to sell its stake. We will offer the stake to the
existing shareholders," Kristiono said.
At present, Telkom has a 35 percent stake in Komselindo with the
rest owned by PT Bimantara Citra through PT Elektrindo
Nusantara.
Earlier this year Telkom was prepared to have its stake in
Komselindo diluted after rejecting a request to inject more
funds into the company.
Komselindo has around US$50 million in debts and requires a
capital injection of some US$56m to expand the business.
=========
J A P A N
=========
DAIEI INC: Weak Summer Gift Season Hurting Sales
------------------------------------------------
Sales at Daiei Inc. will fall this month because of poor demand
during the traditional summer gift-giving season, Dow Jones said
Saturday, citing Daiei President Kunio Takagi.
The Company's mainline retail operations are being closely
watched, especially because the struggling retailer has been
thrown a 520 billion yen lifeline from its three main lenders
UFJ Bank, Sumitomo Mitsui Banking Corp. and Fuji Bank earlier
this year.
The retailer is struggling to recover under a three-year
business plan, in part by closing losing branches.
FUJITSU LTD: Unveils FY2002 Q1 Financial Results
------------------------------------------------
Fujitsu Limited reported on Friday its consolidated net sales of
982.9 billion yen for the first quarter of fiscal year 2002
(April 1 - June 30, 2002), a 10 percent decrease from the first
quarter of fiscal 2001. Converted into US dollars (*1), this
represents approximately $8.1 billion.
Fujitsu faced a difficult business environment during the
quarter. Although the impact of the bursting of the IT bubble in
the United States spread throughout the globe, continuing to
depress markets, there were signs of recovery in the U.S., Asia
and Japan, and there was an overall sense of bottoming out.
However, with the worsening deterioration of the U.S.
telecommunications sector, together with disruptions from the
sharp fall in stock prices and the weakening value of the dollar
precipitated by accounting scandals and other issues in the
U.S., future prospects have become extremely difficult to
predict.
Amidst this economic environment, during the quarter there was
firm demand in Japan for software and services, and the
supply/demand balance for logic ICs and other semiconductor
devices improved, especially overseas. However,
telecommunications carriers - especially in North America -
further tightened restraints on investment, and recovery in
corporate and individual demand for personal computers and other
IT-related products was uneven. These and other factors
adversely impacted Fujitsu's business.
Fujitsu reported a first quarter consolidated operating loss of
29.0 billion yen (US$242 million), an improvement of 13.3
billion yen over the operating loss recorded during the
corresponding quarter of the previous fiscal year. Due in part
to costs associated with continuing restructuring efforts, the
Company posted a net loss for the period of 56.4 billion yen
(US$470 million), compared with a net loss of 55.4 billion
during the corresponding period last year.
In order to cope with dramatic changes in the IT sector and
create a structure better able to meet market and customer
needs, Fujitsu has since last year aggressively pursued a large-
scale corporate restructuring program. Now, the recent turmoil
in the U.S. economy and other factors presage even more drastic
changes to the business environment in which the Fujitsu Group
operates. Recognizing the need to further increase operational
efficiency, Fujitsu will not waver in its commitment to
structural reform.
Results in Principal Business Segments
Services & Software
Spurred by increased utilization of IT by public sector
organizations and corporations in Japan, Fujitsu enjoyed
increased domestic sales of various types of solutions centering
on supply chain management, ERP and middleware, as well as
higher sales of outsourcing services. Overseas, on the other
hand, reductions in IT investment by U.S. and European
telecommunications carriers and other corporations negatively
impacted results. Overall, the first quarter-consolidated sales
for the segment amounted to 380.9 billion yen (US$3,175
million), increased 2 percent from the corresponding period in
2001. Increased operational efficiency and other measures
contributed to an operating profit of 866 million yen (US$7
million), compared with a loss of 1.2 billion yen in the
comparable period last year.
In the Japanese market, sales of UNIX servers and mobile phones
increased, but there were fewer orders for large-scale systems
and sales of large-scale enterprise servers and storage systems
declined. In addition, sales of IMT-2000 (3G) mobile
communications systems decreased, stemming from lower capital
investment by telecommunications carriers. As a result, domestic
platforms business sales for the quarter fell considerably below
the level of the corresponding period last year. Overseas, the
continuation of severe limits on investment by U.S. and other
telecommunications carriers led to a large decline in sales of
optical transmission systems. The Company's withdrawal from the
small form factor hard disk drive market for desktop personal
computers also affected overseas sales. Total consolidated sales
in the platforms segment for the quarter were 379.0 billion yen
(US$3,159 million), down 20 percent from the equivalent period
last year. Thanks to major restructuring efforts undertaken last
year, which included revamping its manufacturing structure and
exiting certain businesses, Fujitsu was able to limit losses in
this segment to 12.9 billion yen (US$108 million), significantly
less than the loss of 23.8 billion yen in the equivalent period
last year.
Electronic Devices
There was significant improvement in sales on a volume basis,
owing to inventory adjustments of semiconductor components used
primarily in mobile telephones, as well as major gains in sales
of logic ICs compared to the preceding quarter. However, delayed
recovery in the supply/demand balance for flash memory also
slowed a revival in prices, and sales suffered. Moreover,
continued restraints on investment in optical transmission
systems delayed a rebound in demand for compound semiconductors
and other products, leading to a deep drop in sales of these
components. On the other hand, Fujitsu began to see considerable
demand for its high-quality plasma display panels (PDPs).
Overall, consolidated sales in the Electronic Devices segment
totaled 141.9 billion yen (US$1,183 million), down 11 percent
from the corresponding period last year. Notwithstanding efforts
to cut costs through restructuring, declines in flash memory and
compound semiconductor sales contributed to an operating loss of
7.4 billion yen (US$62 million) in this area, compared with a
loss of 1.9 billion yen in the same period last year.
Cash Flows
Despite progress in collecting receivables, outlays for
corporate restructuring costs and other payables resulted in
negative cash flows from operating activities of 94.3 billion
yen (US$786 million) during the first quarter, an improvement
over the 140.7 billion yen negative cash flow recorded in the
corresponding period last year. By more tightly focusing capital
investment on growth areas and other measures, cash flows for
investing activities were reduced by 43 percent to 53.3 billion
yen (US$445 million). As a result, free cash flow during the
quarter was minus 147.7 billion yen (US$1,231 million), an
improvement of 86.1 billion yen over the minus 233.8 billion yen
during the equivalent period of the previous year. In regard to
cash flows from financing activities, the issuance in May of 250
billion yen in convertible bonds with stock acquisition rights
and other measures yielded net cash of 192.1 billion yen
(US$1,601 million), an increase of 24 percent over the
equivalent period last year.
Revised Projections for fiscal year 2002
Since the projections made in April - and amidst indications
that the semiconductor inventory correction cycle has run its
course - signs have begun to appear that the market has reached
bottom. However, along with the outbreak of corporate accounting
scandals in the U.S. and the heightened impact of the collapse
of the IT bubble being felt by telecommunications and other
industries, there has been a precipitous decline in stock prices
and the value of the dollar, as well as a deterioration in
American companies' willingness to invest. As a result,
uncertainties regarding the future course of the global economy
have increased. Moreover, with global telecommunications
carriers unable to avoid further structural changes, it is
expected that there will be even greater pressure to restrain
IT-related investment.
Accordingly, although Fujitsu anticipates growth in sales of
electronic devices, particularly logic ICs, it now foresees
lower than expected sales for platform products, particularly
optical transmission and mobile systems, as well as for services
and software, especially overseas. In regard to profits, despite
the projected decline in total consolidated sales, thanks to
improvements in operational efficiency, cost reductions and
other measures, Fujitsu expects that operating and net income
will be consistent with the projections it made in April.
Fujitsu Limited Consolidated Net Sales Projections for Fiscal
Year 2002
(Billion Yen)
FY 2002 (April 1, 2002 - March 31, 2003)
Original Forecast Revised Forecast Difference
(April 25, 2002) (July 26, 2002)
1st Half Full YR 1st Half Full YR 1st Half Full YR
2,320.0 5,200.0 2,250.0 5,000.0 -70.0 -200.0
FY 2001 (Actual)
1st Half Full Year
2,387.7 5,006.9
For further information, please visit the Fujitsu Limited home
page at: www.fujitsu.com/
Contact:
Yuri Momomoto or Robert Pomeroy
Fujitsu Limited
Public & Investor Relations
Tel: +81-3-3215-5259 (Tokyo)
HITACHI LTD: Develops FMC Mobile Commerce Extension Standard
------------------------------------------------------------
Hitachi, Ltd., Ingentix GmbH & Co., Matsushita Electric
Industrial Co., Ltd., SanDisk Corporation and Toshiba
Corporation, disclosed Thursday the creation of the Mobile
Commerce (hereinafter MC) Extension standard for the flash
memory cards. This new MC Extension Standard will enable the
implementation of security functions in addition to the standard
memory features that are already supported by these cards.
Adding these security capabilities will enable the flash memory
cards to be used in new applications, such as: secure data
transfer, content purchase and electronic payment.
Officials of the five companies, known as the 5C, believe that
implementation of the new MC Extension Standard would also
enable flash memory cards usage for stock trading, storage of
personal medical records, and the purchase of entertainment
content, like music and video. They noted that the new security
features could be the driving force to expand the memory card
market which last year saw worldwide sales of some 45 million
flash memory cards, according to market researchers at
International Data Corp. (IDC). Flash memory cards are mainly
used today to capture and store digital photos, digital video,
data and audio. IDC forecast that the worldwide flash card
market, which totaled about $920 million in 2001, would grow to
$2.6 billion in 2006.
The new set of security features, which can be used with such
popular flash memory cards as CompactFlasha, SDO Memory Card,
MultiMediaCard O and others, is called the Mobile Commerce (MC)
Extension Standard. This standard is independent of specific
card specifications (physical dimensions, form factor,
electrical specifications, etc.) as defined by various card
standard organizations or card manufacturers. It is also
independent of operating systems and therefore can be used on a
wide range of devices.
The standard outlines how the security features can be
implemented in flash memory cards. The new standard will be
promoted and licensed in the open market so that card standard
organizations, card manufacturers and device vendors can use it
for the implementation of their products. It is expected that
complete standard specifications and licensing documents will be
available to the public by October, 2002.
"Security features in flash cards are imperative as flash cards
are getting more popular and are being widely adopted in several
applications ranging from mobile phones to PDAs and personal
computers," said Jurgen Hammerschmitt, CMO of Ingentix. "The
common security standard of Hitachi, Ingentix, Matsushita,
SanDisk and Toshiba will place flash cards far ahead of
competitive solutions integrating the highest security
functionality with mass storage capability in a single card."
Masahiro Yamamura, Director of Memory BU, Semiconductor
Integrated Circuits, Hitachi, Ltd., said, "Memory card is no
more only storage device by the M-Commerce extension
specification. The secure memory card, which is integrated by
this common standard, provides the simple ubiquitous life to all
consumers. We expect many memory card committees and
manufacturers to consider the M-commerce extension specification
and adopt it to the products and the card standard."
Yoshiaki Kushiki, Managing Director in charge of multimedia and
software technologies of Matsushita Electric (Panasonic) said,
"Panasonic believes that the higher security technology for
mobile e-commerce will be needed in the ubiquitous networked
society that we now see taking shape. Together with the
expansion of mobile e-commerce thanks to the penetration of
mobile phones and mobile terminals in our daily lives, Panasonic
expects that the more secure storage that will grow out of this
standard will pave the way for the expansion of virtual payments
and other time-saving benefits for consumers."
Eli Harari, President and CEO of SanDisk, said, "Flash memory
cards are becoming ever more prevalent in digital consumer
electronics, cell phones, mobile computing and Internet access
devices. The new Mobile Commerce Security specification
developed by the 5C companies provides for the first time an
industry standard for the implementation of exceptionally high
levels of personal security in flash storage cards. This will
make it possible for such storage cards to secure the transfer
of downloaded content such as music and movies as well as
personal information that is stored today in electronic smart
cards, including financial, medical, personal identification and
other secure personal records. We are very excited about this
specification which we believe will help to accelerate the
widespread adoption of flash storage cards in this decade."
Junichi Kishida, Senior Manager of the File Memory Marketing &
Promotion, Memory Division at Toshiba's Semiconductor Company
said, "In the rapidly growing mobile Internet market and the
emerging ubiquitous networking industry, the five companies'
standardization of MC Extension Standard is expected to enhance
distribution of e-commerce-based services and contents, and to
support development of new markets and applications. In addition
to providing copyright protection for current memory cards, the
standard reinforces memory card security by supporting personal
identification, a feature that will contribute to expansion of
the memory card market. This new standard will be applied to
mobile products such as mobile phones and PDAs and co-exist with
IC cards."
The matters discussed in this news release contain forward
looking statements that are subject to certain risks and
uncertainties as described under the caption, "Factors That May
Affect Future Results' in SanDisk's annual report on Form 10-K
and quarterly reports on Form 10-Q, filed with the Securities
and Exchange Commission. The companies assume no obligation to
update the information in this release.
All trade names are either registered trademarks or trademarks
of their respective holders.
HITACHI LTD: Signs IT Outsourcing Agreement With UFJ Bank
---------------------------------------------------------
UFJ Bank Limited (a wholly owned subsidiary of UFJ
Holdings,Inc.,) and Hitachi, Ltd. announced Thursday the
conclusion of an IT Outsourcing agreement. Under the terms of
the basic agreement outlined below, Hitachi will start providing
services to UFJ Bank on October 1 this year.
1. Outline of the Basic Agreement
Long-Term Outsourcing Agreement
Details UFJ Bank will outsource the development of systems for
domestic banking operations and the operation of these systems
to Hitachi.
Term 10-year period from October 1, 2002 through September 30,
2012
Amount Approx. Y250.0 billion over 10 years
Joint Development of Modular Computer System for Banking
UFJ Bank and Hitachi will jointly develop a mainframe banking
system made up of application modules. This will greatly
simplify the addition of new services and the provision of
multi- faceted services. There will be sub-systems designed
specifically for each product and service. Together, these
advances will create a more stable, open system.
2. Other Terms of the Agreement
The long-term, 10-year outsourcing agreement, which stems from a
longstanding partnership between UFJ Bank and Hitachi, will
allow UFJ Bank to pare IT costs and continuously introduce the
latest IT technologies.
Hitachi will take an equity interest in a wholly owned UFJ Bank
subsidiary Sanwa System Development Co., Ltd. This Company (see
the Reference) will then be renamed and positioned as the
fulcrum of Hitachi's outsourcing business.
UFJ Bank will sell software assets* to Hitachi Capital
Corporation (President and Representative Director: Kaichi
Murata), which Hitachi will then lease for use in its
outsourcing business and for facilitating business to other
banks.
*The estimated sales price of the software, which relates to
domestic banking operations, is approximately 50 billion.
3. Objectives of Outsourcing
Computer systems for banking are growing in importance as a
vital social infrastructure and are also tending to become
faster and more complex in nature. These trends require systems
to be more reliable and efficient.
UFJ Bank has achieved the planning, development and operation of
the systems by itself and its subsidiaries. The IT outsourcing
to a leading Company like Hitachi and the collaboration with it
through the IT vehicle will make possible the development and
operation of systems that are even more advanced and stable.
Drawing on Hitachi's high level of expertise will also
strengthen risk management.
Greater efficiency in systems development and operations from
outsourcing these functions will allow UFJ Bank to cut IT costs.
(Hitachi) Hitachi will further develop its IT outsourcing
business, which is one of the core in its information and
telecommunication businesses, taking advantage of this
outsourcing assignment of UFJ Bank's system, one of the best of
its type in Japan.
Through participating in the management of UFJ Bank 's system
development subsidiary, Hitachi will gain advanced know-how in
banking businesses, and utilize it in providing other financial
institutions with value-added services, including consultation
and system development.
Hitachi will aggressively promote sales of systems and software
packages to be developed through the collaboration with the UFJ
Group on this project.
About UFJ Bank
UFJ Bank Limited, a wholly owned subsidiary of UFJ Holdings,
Inc., is the core Company of the UFJ Group, one of the four
leading financial groups in Japan. Under the holding Company,
the Bank was formed through the merger of The Sanwa Bank,
Limited and The Tokai Bank, Limited in January 2002. It consists
of three business lines, namely, retail banking, corporate
banking, and global banking and trading, and has the strong
franchise in Tokyo, Nagoya and Osaka areas. As of March 31,
2002, the total assets were 72.3 trillion yen, loan amount was
42.5 billion yen, and deposit amount was 53.1 trillion yen.
Profile of the New Company
Company name UFJ Hitachi Systems Co., Ltd. (tentative)
Head office Chuo-ku, Tokyo
Capital 50 million
President Sunao Urakami
Shareholding UFJ Bank 51 percent, Hitachi 49 percent
No. of employees Approx. 450
Main business lines
Planning, development and operation of banking systems on
consignment.
Development of systems packages for other financial
institutions.
All related work
Change of Company name October 1, 2002 (Coinciding with
Hitachi's investment)
MERRILL LYNCH: Places Employee on Administrative Leave
------------------------------------------------------
Merrill Lynch & Co., Inc. recently announced that it has placed
an employee in its investment banking division, Schuyler Tilney,
on administrative leave in light of his decision not to testify
on Tuesday, July 30 before the Senate subcommittee investigating
Enron. Merrill Lynch is cooperating fully with the subcommittee
and will provide other employees to testify.
Mr. Tilney made his decision based upon the advice of his
counsel after learning of a Department of Justice investigation
into a transaction being reviewed by the Senate subcommittee.
Merrill Lynch has been advised that it is not a target or
subject of the Department of Justice's investigation, and is
cooperating fully. Merrill Lynch has also been informed that a
former employee of its investment banking division, Robert
Furst, acting on the advice of his counsel, has also decided not
to testify before the Senate subcommittee.
Merrill Lynch's dealings with Enron were limited. As has been
reported previously, they include a $7 million equity investment
in a Company established to operate energy generation barges,
and Merrill Lynch's role as a private placement agent for the
LJM2 partnership. Merrill Lynch strongly believes its dealings
with Enron and LJM2 were appropriate and proper based on what we
knew at the time.
Merrill Lynch also believes that based on the information
currently available to it, its employees also behaved properly
in the Enron transactions. However, it is placing the employee
on administrative leave because the Company's policy is to
cooperate fully with governmental and regulatory inquiries.
TCR-AP reported last week that Merrill Lynch Japan's retail-
securities division would close five more branches in August as
part of rationalization efforts.
Merrill's Japan retail brokerage posted a net loss of 8.4
billion yen in the year ended March 2001. It had losses of 7.4
billion yen a year earlier and 8.8 billion yen the year before
that.
MITSUBISHI TOKYO: Unveils FY02 Q1 Results Under Japanese GAAP
-------------------------------------------------------------
Mitsubishi Tokyo Financial Group, Inc. (MTFG; President:
Shigemitsu Miki) announced Thursday the financial information of
the Company and its 100 percent owned subsidiaries, The Bank of
Tokyo-Mitsubishi, Ltd. (BTM) and the Mitsubishi Trust and
Banking Corporation (MTBC) for the first quarter of fiscal year
ending March 31, 2003.
Unless titled, all of disclosed figures are non-consolidated
basis, and figures of MTFG are the sun of those of BTM and MTBC.
All of disclosed figures are un-audited, and the scope of the
disclosed figures is different from that of the end of the first
half and full year of fiscal 2002 as noted in each section.
Based on the spirits of "The Front-Loaded Reform Program" which
aim at structural reform of financial system and securities
markets of Japan, MTFG will make every effort for early
disclosure of quarterly management information, and quickly
construct a group-based system for preparation of quarterly
financial statement.
Inquires:
Mr. Keiichi Riko
Chief Manager, Financial Policy Division
Mitsubishi Tokyo Financial Group, Inc.
Tel. +81-3-3240-8139
For more financial information, go to
http://bankrupt.com/misc/TCRAP_MTFG0729.pdf
TCR-AP reported that The Mitsubishi Tokyo Financial Group plans
to dispose around $3.94 billion in bad loans in the year ending
March 31, 2003. The Company intends to sell them to the
Resolution and Collection Corp., a government-backed debt
collection agency.
Saddled with unprofitable investments and loans, the bank is
also considering auctioning some to investors.
Meanwhile, Kyodo News said Mitsubishi Tokyo Financial Group Inc
had an appraisal loss of 144.6 billion yen on domestic shares it
held at the end of June. In its financial report for the April-
June period, the major banking group blamed the turnaround on
the stock market slump.
NISSAN MOTOR: Reaches Agreement to Sell Unit to JP Morgan
---------------------------------------------------------
Nissan Motor Company announced Friday that it has reached an
agreement to sell its entire stake in Rhythm Corporation. The
sale is part of a management buyout (MBO) to the funds managed
by J.P. Morgan Asia Equity Advisors, a subsidiary of the U.S.
private equity investment firm J.P. Morgan Partners. The
transaction is scheduled on August 9.
Rhythm is an automotive parts manufacturer specializing in
steering and suspension components. Currently, Nissan Motor
Company owns 51 percent of total shares in Rhythm, while Unisia
JECS owns 49 percent where will also be sold to the fund in a
related transaction. J.P. Morgan Partners will assist in
strengthening Rhythm's business operations from now on. Nissan's
business with Rhythm will continue.
Nissan is restructuring its supplier network, creating an
internationally competitive global supply base. Moreover, Nissan
is implementing Nissan 180, a 3 year plan aiming to achieve
Nissan's continuous revival through growth, profits and the
elimination of debt.
- Outline of Rhythm Corporation -
Company name: Rhythm Corporation
Business areas: Production and sales of steering
linkages, ball joints, and other components related to vehicle
control and steering, and brake-related components.
Date of establishment: 1961
Capital: 400 million yen
Listing: Unlisted
Business results: Consolidated sales of 22,649 million Y
(fiscal period ending in March 2002)
Number of employees: Approximately 1,000 (consolidated/at
the end of March 2002)
- Outline of J.P. Morgan Partners -
Company name: J.P. Morgan Partners
Business areas: Private equity investment
Date of establishment: 1984
Operating assets: Over US$30 billion (approximately 3.6
trillion yen)
Investment transactions: Over 1,800
Number of employees: Approximately 160
About Nissan Motor Co., Ltd.
Nissan Motor Co., Ltd. was established in 1933 to manufacture
and market the Datsun, a small passenger car, and related
automotive components. The Company is Japan's second largest
automobile manufacturer and the world's fifth, with annual
global sales of 2,415,433 vehicles. The Company markets a wide
range of passenger cars, commercial vans, trucks and buses,
parts and components in over one hundred and seventy countries.
The Company has also expanded its operations to include
forklifts, textile machinery and other industrial machinery and
equipment. Nissan's affiliation with French automaker Renault in
1999 has helped produce Nissan's best results in a decade. The
Company has three hundred and forty two consolidated
subsidiaries worldwide. Consolidated sales in FY 2000 exceeded
$49 billion dollars (Euro 55 billion.)
For further information, please visit the Nissan Motor Co., Ltd.
home page at: www.nissan.co.jp
TCR-AP that Nissan Motor Co Ltd is planning to issue an 85
billion yen three-year domestic straight bond with a 0.59
percent coupon, citing lead manager Daiwa Securities SMBC Co
Ltd. The bond payment will mature on July 19, 2005.
In its restructuring plan, Nissan had pledged to achieve an
operating margin of 4.5 percent and net debt of no more than 700
billion yen.
NTT DOCOMO: Enters Partnership With Lucky Strike
------------------------------------------------
NTT DoCoMo, Inc. announced Friday a partnership with the Lucky
Strike B.A.R Honda Formula One team to apply its mobile
communications technology on Formula One racing circuits.
In a technical alliance, DoCoMo and B.A.R will develop a circuit
wireless communications system (CWCS)-a reliable, high-quality,
high-security communications system for the extreme environment
of 300kph+ speeds.
Electronic noise and connection instability caused by high
physical speeds have long been demanding challenges for mobile
communications technology. DoCoMo will apply its experience and
know-how, including its 3G service, in overcoming these
challenges to develop reliable voice communications and two-way
data telemetry* in this environment.
Beginning with the Japanese Grand Prix at the Suzuka circuit on
October 11, DoCoMo will provide a system to enable private voice
conferencing among B.A.R pit crews (team director, engineers and
mechanics). DoCoMo aims to add voice communication with drivers
and two-way data telemetry in 2003.
* Reliable bi-directional data telemetry allows teams to receive
error-free data transfers from the cars, and to send reliable
command information to the cars to tune performance during the
race.
SUMITOMO REALTY: JCR Assigns Rating to BBB
------------------------------------------
Japan Credit Rating Agency on Wednesday has assigned a BBB
rating to the following bonds of Sumitomo Realty and Development
to be issued under the shelf registration to Sumitomo Realty and
Development.
Issue: bonds no.34
Amount: Y10 billion
Issue Date: August 23, 2002
Due Date: August 23, 2005
Coupon: 1.50 percent
Covenants: Negative Pledge & Collateralized
Commissioned Company: Yes
Shelf Registration:
Maximum: Y200 billion
Valid: two years from May 18, 2001
Rationale
Sumitomo Realty & Development is a major real estate Company of
Sumitomo group.
Seven office buildings including large-scale redevelopment
projects will be completed in the current fiscal year. The
management is pushing for these projects under the New Three-
Year Plan for fiscal 2001 through fiscal 2003 ending March 31,
2004. Competition with large buildings to be completed in 2003
for the tenants has already started.
There is additional concern about the operations of the office
buildings in the future. The vacancy rates of the existing
office building may increase due to the successive completions
of construction of many new office buildings. JCR considers that
the Company has competitive edge, given its holding of many
relatively young buildings. Concerning the condominium sales
that have been performing well, JCR considers it necessary to
watch carefully the impact of changes in the market conditions
in the future.
The interest-bearing debt including liabilities for guarantee
decreased to 1,192.9 billion yen as of end of March 2002 as
planned. The financial structure has been improving. The Company
plans to reduce the interest-bearing debt to less than 10 times
the amount of the operating profit by the end of March 2004. JCR
will watch carefully how the Company deals with the impending
introduction of accounting for impairment of the fixed assets as
well as the progress of the debt reduction.
JCR announced the affirmation of BBB rating for the Company on
February 14, 2002. The bond proceeds will be used for retirement
of the bonds outstanding. Therefore, the issue will not have a
significant impact on the financial structure of the Company.
=========
K O R E A
=========
DAEWOO ELECTRONICS: Government Will Not Refund Tax Paid
-------------------------------------------------------
The Bureau of Audit and Inspection (BAI) announced that Daewoo
Electronics Co. is not entitled to a refund of the corporate tax
paid in excess as a result of the inflation of profits through
window-dressing of financial statements, Asia Pulse reported
Monday.
"It is not acceptable that Daewoo Electronics insists that it
inflated its profits through window-dressing after it
voluntarily paid the corporate tax June 30, 1999, based on the
net asset value inflated by 3.7 trillion won (US$2.9 billion),"
the BAI said in a ruling.
BAI said Daewoo violated the law that calls for outside auditors
to inspect financial statements.
According to TCR-AP creditors of heavily indebted Daewoo
Electronics are planning to split up the Company and hand over
its home appliance and display business to affiliate Daewoo
Electric Motor Industries Ltd.
HYNIX SEMICONDUCTOR: FSC Reviews Asset Sale, Survival Options
-------------------------------------------------------------
The Financial Supervisory Commission is reviewing Hynix
Semiconductor Inc's asset sale and independent survival options
by September, AFX Asia reported Monday, citing FSC Chairman Lee
Keun-young.
Lee added that the recent demand by minority shareholders for an
asymmetrical capital write-down to protect their own stakes is
hard to accept as it violates the principle of equal shareholder
rights.
HYUNDAI OILBANK: Issues W200B Corporate Bonds
---------------------------------------------
Hyundai Oilbank is planning to issue on Monday non-collateral
corporate bonds worth 200 billion won to improve its short-term
financial loan management, the Maeil Business Newspaper reports.
Korea Development Bank is lead manager of the issue.
The bank also borrowed $150 million from Citibank in June.
According to TCR-AP, Hyundai Oilbank's net loss in 2001 widened
to 331.3 billion won, versus a loss of 193.1 billion in 2000.
However, through some efforts to improve its financial base, the
Company incurred a net profit of 35.6 billion won in the first
quarter of this year.
SEOUL BANK: Hana, Lone Star, JP Morgan Complete Due Diligence
-------------------------------------------------------------
The date for submitting bids in the sale of Seoul Bank is
finally set for July 30 after potential buyers Hana Bank, JP
Morgan Chase & Co., and Lone Star Fund completed a price due
diligence on the state-owned bank.
According to a report from the Korea Herald, the Korea Deposit
Insurance Corp. will review the acquisition prices and terms
presented by the bidders and will select a preferred negotiating
partner after review by the public fund management committee.
Hana Bank seeks a 51 percent stake in Seoul Bank for about 510
billion won ($396.7 million), and to offer its shares to cover
some parts of the payment.
Lone Star Fund seeks to buy a 100 percent stake for 1.1 trillion
won, and to guarantee employment for all staff. (M&A REPORTER -
ASIA PACIFIC, Vol. No.1, Issue No. 148, July 29, 2002)
===============
M A L A Y S I A
===============
ANSON PERDANA: Court Extends Restraining Order Until Jan 2003
-------------------------------------------------------------
Anson Perdana Berhad announced that the Restraining Order
pursuant to Section 176 of the Companies Act, 1965 has been
extended by the Kuala Lumpur High Court to 29 January 2003.
Profile
The 1997 financial crisis adversely affected the operations of
the Group, and in year 2000, the Group's plantation interests in
Perak were disposed of for cash to meet working capital
requirements. In view of the adverse financial conditions, the
Company had developed an integrated debt-restructuring scheme
with financial institutions, trade and other creditors.
The Company and certain subsidiaries were also granted by the
High Court of Malaya a Stay and Restraining Order pursuant to
Section 176(10) of the Companies Act, 1965. At the Court
convened creditors' meetings held on 15 March 2001 and 27 March
2001, the Scheme was approved by the majority of creditors in
terms of number and value. On 24 October 2001, the Company
submitted to the SC its application in respect of the Scheme,
which is now being processed. The FIC approved the Scheme vide
its letter of 18 January 2002.
BERJAYA SPORTS: Posts Shares Buy Back Notice
--------------------------------------------
Berjaya Sports Toto Berhad posted this notice:
Stock Name : BJTOTO
Date Announced : 25/07/2002
Date of buy back : 25/07/2002
Description of shares purchased : Ordinary Shares
Total number of shares purchased (units) : 70,000
Minimum price paid for each share purchased (RM) : 3.880
Maximum price paid for each share purchased (RM) : 3.900
Total consideration paid (RM) : 273,597.15
Number of shares purchased retained in treasury (units) : 70,000
Number of shares purchased which are proposed to be cancelled
(units) :
Cumulative net outstanding treasury shares as at to-date (units)
: 31,594,000
Adjusted issued capital after cancellation
(no. of shares) (units) :
Remarks : The number of shares with voting rights in issue after
the above share buyback is 554,829,522
Profile
In December 2000, the Company proposed a special cash dividend
of 170%, rights issue of ICULS and increase in authorized share
capital to RM2b. The ICULS issue forms part of a repayment
scheme between the Company and its immediate holding company,
Berjaya Land Bhd (B-Land), to settle inter-company advances of
the latter via liquidation of the ICULS in the open market or
redemption of the ICULS. B-Land has committed to resolve the
inter-company advances within three years from the ICULS issue
date. The proposals are still pending shareholders' approval.
GLOBAL CARRIERS: Proposed Revised Plan Implementation Extended
--------------------------------------------------------------
Utama Merchant Bank Berhad, on behalf of Global Carriers Berhad,
announced that the Securities Commission (SC) by its letter
dated 19 July 2002 approved GCB's application for an extension
of time of five (5) months up to 31 December 2002 to implement
the Proposed Revised Scheme. SC also reminded GCB that the terms
and conditions as mentioned in SC's approval letter dated 31
July 2001 remains unchanged.
The Proposed Revised Scheme collectively refers to:
* Proposed Composite Scheme (under Section 176 of the
Companies Act, 1965) between Global Carriers Berhad and its
Subsidiaries with their respective Scheme Creditors (Proposed
Composite Scheme)
* Proposed BSNC Leasing (M) Sdn Bhd Settlement Scheme between
Global Carriers Berhad and Budisukma Sdn Bhd, and BSNC Leasing
(M) Sdn Bhd (Proposed BSNCL Settlement Scheme)
* Proposed Non-Financial Creditors Settlement Scheme between
Global Carriers Berhad and the Non-Financial Creditors of Global
Carriers Berhad and its Subsidiaries (Proposed N-FCSS).
MOL.COM BERHAD: Silicon Acquisition Proposal Canceled
-----------------------------------------------------
On behalf of MOL.com Berhad, AmMerchant Bank Berhad (formerly
known as Arab-Malaysian Merchant Bank Berhad), in respect of the
Proposals, advised that following the Securities Commission's
(SC) decision with regards to the Silicon Acquisition, the Board
has decided not to proceed with the acquisition.
Accordingly, Silicon together with the Vendors of Silicon would
be required to refund the deposit totaling RM1,886,000 to
MOL.com Berhad. Thereafter, the agreement shall be null and
void and of no further force and effect.
Additionally, the Company advised that AmMerchant has on behalf
of the Company submitted an appeal with regards to the proposed
utilization of the proceeds from the Proposed Rights Issue for
the financing/refinancing of the investment in the information
and communications technology companies as originally proposed
except for the Silicon Acquisition.
The Proposals are:
* Revision To The Terms Of The Proposed Acquisition And
Subscription Of Shares In Silicon Communications Sdn Bhd
(Silicon Acquisition);
* Proposed Rights Issue; and
* Proposed Increase in Authorized Share Capital.
PANTAI HOLDINGS: Warrants Right Issue Oversubscribed
----------------------------------------------------
On behalf of the Board of Directors of Pantai Holdings Berhad,
Commerce International Merchant Bankers Berhad announced that at
the close of acceptance and payment of the Rights Issue at 5:00
pm on 22 July 2002, total acceptances and excess applications
received for the Rights Issue was for RM77,932,333 nominal value
of ICULS 2002/2007 and 77,932,333 Warrants.
This represents an over-subscription of RM10,940,866 nominal
value of ICULS 2002/2007 and 10,940,866 Warrants or 16.33% over
the total number of RM66,991,467 nominal value of Renounceable
Rights Issue of Rm66,991,467 Nominal Value of 5% 5-Year
Irredeemable Convertible Unsecured Loan Stocks 2002/2007
and 66,991,467 Warrants available for subscription under the
Rights Issue.
On April 2, TCR-AP reported that the Company proposed an
internal restructuring (Proposed Restructuring) of its Group of
Companies (PHB Group). The Proposed Restructuring involves the
transfer of six investment holding subsidiaries directly held
under PHB to a wholly owned subsidiary, Pantai Group Resources
Sdn Bhd (PGR), which will function as an intermediate holding
company.
SENG HUP: Independent, Non-Exec Chairman Bin Hamidi Resigns
-----------------------------------------------------------
Seng Hup Corporation Berhad posted this notice:
Date of change : 21/07/2002
Type of change : Resignation
Designation : Chairman
Directorate : Independent & Non Executive
Name : DATUK AHMAD ZAHID BIN HAMIDI
Age : 49
Nationality : MALAYSIAN
Qualifications :
1. BACHELOR OF ARTS (HONOURS) DEGREE FROM UNIVERSITY OF MALAYA
2. POST GRADUATE DIPLOMA IN MARKETING FROM THE INSTITUTE OF
MARKETING
3. CERTIFICATE IN BANKING FROM BANK NEGARA MALAYSIA
4. CERTIFICATE FROM HARVARD BUSINESS SCHOOL
5. MASTER IN SCIENCE (CORPORATE COMMUNICATION) FROM UNIVERSITI
PUTRA MALAYSIA
Working experience and occupation : HE HAS WORKING EXPERIENCE
IN THE BANKING INDUSTRY AND HOLDS DIRECTORSHIPS IN BOTH LISTED
AND NON LISTED COMPANIES. HE IS ALSO A MEMBER OF PARLIAMENT OF
BAGAN DATOK.
Directorship of public companies (if any) :
1. KRETAM HOLDINGS BERHAD
2. RAMATEX BERHAD
3. TEKALA CORPORATION BERHAD
Family relationship with any director and/or major shareholder
of the listed issuer : NONE
Details of any interest in the securities of the listed issuer
or its subsidiaries : NONE
Composition of Audit Committee (Name and Directorate of members
after change) :
1. ENCIK AZRI BIN AHMAD - Independent Non Executive Director
2. MR TING KEAW @ LAW LEE SEE - Managing Director
Days ago, TCR-AP reported that Dato' Hamid bin Man had on 19
July 2002 written to SHCB to inform SHCB that he has decided to
withdraw as the "white knight"/promoter from the Scheme with
effect from 19 July 2002.
SPORTMA CORPORATION: Provides Defaulted Payment Status Update
-------------------------------------------------------------
Sportma Corporation Berhad (Special Administrators Appointed),
as required by the KLSE Practice Note 1/2001, provided an
estimate of its default in payment as at 30 June 2002, as
attached in http://www.bankrupt.com/misc/TCRAP_Sportma0730.xls
The total default by Sportma on the principal sum plus interest
as at 30 June 2002 amounted to RM218,825,066.67. The default
payment is in respect of revolving credit facilities, trade
financing and overdraft utilized by Sportma.
There is no further new development on the default of payment of
the Company, since the previous announcement with regard to this
Practice Note.
Note: Chemitech Industries Sdn Bhd, which was a wholly owned
subsidiary of Sportma , has been put into liquidation since 7
September 2001, the default in payment in respect of its term
loan as announced previously, is no longer deemed as liabilities
of the Sportma Group.
TALAM CORPORATION: Shareholders OK All Resolutions at AGM
---------------------------------------------------------
Talam Corporation informed that its shareholders have at the
Annual General Meeting of Talam held on 25 July 2002 approved
all the resolutions including four Ordinary Resolutions under
the Special Businesses, as set out in the Notice of the Annual
General Meeting dated 28 June 2002.
Profile
Originally formed to undertake tin mining, the Company ceased
its mining operation in 1983 and ventured into leasing business
with the incorporation of Talam Leasing Sdn Bhd. In 1985, Talam
branched into property development, purchasing properties in
Setapak, Selangor and Cameron Highlands. Subsequently in 1990,
it acquired Maxisegar Sdn Bhd, the property development company
which was developing Pandan Indah I in Kuala Lumpur. Since then,
property development and investment holding have become the core
businesses of the Company.
With 11 years of experience in the property industry, Talam has
established a strong presence as one of the major players in the
Malaysian property sector, particularly as a developer of
affordable homes. The Company's current development projects
include Saujana Puchong, Danau Putra, Bukit Sentosa, Saujana
Selayang, and Bandar Baru Ampang. The new projects in the
pipeline include Bandar Seri Bukit Jalil, Sierra Damansara,
Berjuntai Bistari (Shah Alam 2), Putra Perdana 3 and Pinggiran
Pandan Indah.
On 15 June 2001, Talam, Europlus Bhd (Europlus) and Kumpulan
Europlus Bhd (Kumpulan Europlus) entered into an agreement to
rationalize the businesses of Talam and Europlus including the
merger of the property related businesses of the companies and
Talam. Under the proposed merger, which will be implemented via
members' schemes of arrangement under section 176 of the
Companies Act, 1965, the property businesses of Europlus and
Talam will be consolidated under Talam whilst some of the non-
property businesses of both Europlus and Talam will be
rationalized and consolidated under a new holding company,
namely Kumpulan Europlus. Upon completion of the proposed
merger, the enlarged Talam Group would have a total landbank of
approx. 17,500 acres of land to be developed over a period of 15
years.
TIMBERMASTER INDUS: Finds White Knight to Aid in Debt Workout
-------------------------------------------------------------
Timbermaster Industries Berhad announced that the Kuala Lumpur
Stock Exchange by its letter dated 23 July 2002 rejected the
Company's application for an extension of time until 30 August
2002 to enable the Company to announce its plans to regularize
its financial condition (the Requisite Announcement).
The Company by its letter dated 19 June 2002 sought the
Exchange's approval to allow the Company to make the Requisite
Announcement by 30 August 2002.
Notwithstanding the above, the Exchange drew the Company's
attention to the Exchange's letters dated 27 November 2001 and 9
July 2002 and reminded the Company, an Affected Listed Issuer
(as defined in PN4) of its obligation to regularize its
financial condition in accordance with the requirements of
Paragraph 8.14 of the Listing Requirements and PN4 by 31
December 2002, failing which the Company may be de-listed from
the Exchange pursuant to Paragraph 16.09 of the Listing
Requirements.
In the meantime, the Special Administrators of the Company
announced that they have selected a White Knight to assist the
Company in its corporate debt restructuring exercise.
Thereafter, the Special Administrators of the Company will
formulate a workout proposal for the Company pursuant to Section
44 of the Pengurusan Danaharta Nasional Berhad Act, 1998. The
workout proposal for the Company will inter-alia take into
consideration the interest of all stakeholders of the Company as
well as deal with the Company's plans to regularize its
financial condition.
In view of the above, the Special Administrators, for and on
behalf of the Company, will be appealing to the Exchange for its
refusal to grant the extension of time to the Company.
WEMBLEY INDUSTRIES: Changes Registered Address
----------------------------------------------
Wembley Industries Holdings Berhad posted this notice:
Old registrar : M & C SERVICES SDN BHD (3775-X)
New registrar : TENAGA KOPERAT SDN BHD (118401-V)
Address : 20th Floor, Plaza Permata, Jalan Kampar Off
Jalan Tun Razak, 50400 Kuala Lumpur.
Telephone No : 40416522
Facsimile No : 40426352
Effective date : 24/07/2002
Profile
The Wembley Group's present focus is the implementation of the
Plaza Rakyat project. Following the liquidation and disposal of
several of its principal subsidiaries in 1999 and 2000, the
Group's financial viability hinges on the successful outcome of
its proposed debt restructuring and rights issue, which was
announced in December 1999. The proposal is currently under
revision.
Helmed by subsidiary Clifford Investments Ltd, construction
works for the development of the Plaza Rakyat project are
currently progressing at a slower pace. The Group is
concentrating on the development of the inter-state bus and taxi
terminal, the retail podium and the budget hotel while other
components such as the office tower, service apartments and a
four-star hotel have been rescheduled, to be undertaken in the
near future.
Interim funding from its corporate proposals would enable the
Group to expedite the completion of the terminal, podium and
hotel and subsequently to generate development profit. The
Company is currently working on a revised proposed debts
restructuring scheme and is discussing with its creditors which
include financial institutions.
=====================
P H I L I P P I N E S
=====================
DMCI HOLDINGS: Clarifies Business World Report
----------------------------------------------
DMCI Holdings responded to the news article entitle "Metro
Pacific offers club shares to Universal Leisure" published in
July 22, 2002 issue of the Business World.
The article reported "The real estate arm of conglomerate Metro
Pacific Corp. (MPC) has offered to compensate Universal Leisure
Club some P139 million worth of golf club shares of allegedly
selling a bank-mortgaged property in Batangas. The board of
directors of the cash-strapped club, Business World learned, is
studying the offer of Landco Pacific Corp. and MPC's
construction arm, Metro Tagaytay Land Co., Inc. (MTLCI), but at
least two independent directors are reportedly objecting to the
proposal.
For another, DMCI Holdings, Inc. Chairman Isidro A. Consunji,
who supposedly bought the encumbered land and made it appear
'clean,' is a shareholder of MTLCI. MPC, which is itself deep in
debt, reportedly wanted to settle with the club to avert any
criminal or civil suit.
However, the compromise issue is separate from the syndicated
estafa complaint club members filed against Mr. Consunji and
other officials of ULC, DMCI, URPHI and Universal Leisure Club."
DMCI Holdings, Inc., in its letter dated July 25, 2002,
clarified that:
As we have gathered the 'offer was as such as proposal which has
to be deliberated upon and approved by the Boards of Directors
of Universal Leisure Club and Universal Leisure Corporation and
its parent Company, Universal Rightfield Property Holdings, Inc.
At this state therefore, we feel that is premature to disclose
the terms and conditions of the offer.
In any case, we would request the above-mentioned companies to
furnish you with the full text of any agreement if and when such
is reached by the parties.
The press release can be found at
http://bankrupt.com/misc/TCRAP_DMCI0729.pdf
FIRST PHILIPPINES: PhilRatings LTCP Rating Under Review
-------------------------------------------------------
First Philippine Holdings Corporation's (FPHC) PRS A rating for
its outstanding P800 million LTCPs falling due between November
2003 and January 2004, continues to be under review, PhilRatings
announced Friday, as FPHC provided it with initial updates on
the status of the Company's efforts to raise needed funding to
meet payments due on its USD86 million (inclusive of premium) in
notes with a put option exercisable on August 4. The notes are
held by the JP Morgan Group (USD 20 million), the AIG Group (USD
38 million), and Benpres Holdings Corporation (USD 28 million).
According to the Company, it now has USD60 million in cash on
hand to partly cover the amount, which may have to be paid out.
In addition, FPHC is now in the final stages of negotiations
with a still undisclosed party for a financing facility
amounting to about USD 50 million. According to the Company, all
major terms and conditions have already been agreed upon but the
actual signing of the agreement has yet to be completed pending
minor revisions. FPHC targets to be able to draw on the facility
by the end of the month.
PhilRatings will continue to monitor developments regarding the
signing of the agreement for the facility and an announcement of
the final monitoring rating should be done by August 2, at the
latest.
PHILIPPINE LONG: Clears Amended By-Laws Issue
---------------------------------------------
The Philippine Long Distance Telephone Co., with reference to
the news article entitled "First Pac hits PlDT for new by-laws"
published in July 25, 2002 issue of the Manila Times.
The article reported "First Pacific Co. Ltd. yesterday lashed
out at the Philippine Long Distance Telephone Co.'s (PLDT) board
of directors for allegedly approving its by-laws without the
consent of its shareholders, and called for the by-law's
immediate revision. 'On the matter of PLDT's by-law on the
nomination and election of competitors to the board of PLDT,
this was approved on 29 March 2001 by the board of PLDT without
prior notice to, and approval by, PLDT's shareholders in general
meeting, a statement released by First Pacific said.
Philippine Long Distance Telephone Co, in a letter to the
Exchange dated July 25, 2002, explained that:
We advise that the amended By-laws was adopted by the Board of
Directors on March 29, 2001 pursuant to the authority delegated
to the Board of Directors by the stockholders to the authority
delegated to the Board of Directors by the stockholders
representing two-thirds (2/3) of the outstanding capital stock
of PLDT in a meeting held on April 15, 1953. The Securities and
Exchange Commission on April11, 2001, approved the said amended
By-Laws. We wish to emphasize that the delegation by the
stockholders of the power to amend by-laws to the Board of
Directors of a stock corporation is recognized and authorized
under Section 48 of the Corporation Code of the Philippines
(Batas Pambansa Blg. 68).
For a copy of the press release, go to
http://bankrupt.com/misc/TCRAP_PLDT0729.pdf
PHILIPPINE LONG: Listing of Additional Shares Set for July 26
-------------------------------------------------------------
The Philippine Stock Exchange approved on May 18, 2001, subject
to the actual exercise of the conversion rights by the preferred
shareholders, the application of PLDT to list up to 12,400,000
common shares, with a par value of P5.00 per share, divided
into:
a. 2,900,000 common shares to cover the underlying shares of
Series V Comulative Convertible Preferred Shares;
b. 5,600,000 common shares to cover the underlying shares of
Series VI Cumulative Convertible Preferred Shares; and
c. 3,900,000 common shares to cover the underlying shares of
Series VII Cumulative Convertible Preferred Shares.
In this connection, please be advised that the Company has
received a notice from a preferred shareholder for the
conversion of 5,558 shares of Series VI Cumulative Convertible
Preferred Stock with 5,558 common shares.
In view thereof, the listing of the 5,558 common shares is set
on Friday, July 26, 2002.
PHILIPPINE LONG: Secures JPY9.76B JBIC Overseas Investment Loan
---------------------------------------------------------------
Philippine Long Distance Telephone Company (PLDT) said Friday
that it has secured a JPY9.76 billion Overseas Investment Loan
from the Japan Bank for International Cooperation (JBIC). The
loan was granted by JBIC to PLDT under the Overseas Investment
Loan program. Shinichi Jin, Deputy Governor and Managing
Director of JBIC and Manuel V. Pangilinan, President and Chief
Executive Officer of PLDT signed the loan agreement on Friday in
Tokyo. Attending the signing were senior officers of NTT
Communications and PLDT.
The Overseas Investment Loan program of JBIC is made available
to companies with Japanese investors. The program is intended to
support the initiatives of Japanese companies engaging in
international operations while assisting in the development of
the host country and investment recipient companies.
Mr. Pangilinan said, "Obtaining this JBIC loan demonstrates that
PLDT continues to enjoy the support of another key traditional
lender and that PLDT's underlying credit fundamentals remain
sound." Pangilinan added, "We believe that PLDT is strongly
positioned to remain the leading telecommunications provider in
both the fixed and wireless sectors in the Philippines and we
thank NTT Communications for their unwavering support and
confidence in the medium to long-term prospects of PLDT."
The loan will be available for immediate draw down and starts
amortizing beginning March 2005 after a 2.5-year grace period
with final maturity due in March 2008.
PHILIPPINE LONG: First Pac Aims to Complete Sale by Sept 30
-----------------------------------------------------------
First Pacific Co Ltd intends to sell its controlling stakes in
Philippine Long Distance Telephone Co before September 30 as the
Salim family, First Pacific's major shareholder, has been given
by the Indonesian government until October 11 to pay part of its
32.2 trillion rupiah debt, the Philippine Star reported.
Hong Kong's First Pacific has signed a memorandum of agreement
with the Gokongwei group to form a US$925 million joint venture
that will take over the former's stakes in PLDT and Bonifacio
Land Co.
PLDT management, however, is opposing the entry of the
Gokongweis. The country's telecommunications giant said the
entry violates the Company's by-laws since the Gokongweis own a
rival phone Company, JG Summit. (M&A REPORTER - ASIA PACIFIC,
Vol. No.1, Issue No. 148, July 29, 2002)
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S I N G A P O R E
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CHARTERED SEMICONDUCTOR: Extends Losses on TSMC Outlook, Nasdaq
---------------------------------------------------------------
Chartered Semiconductor extended its losses, down S$0.13 at
2.91, off a low of 2.83, after Taiwan Semiconductor
Manufacturing Co Ltd's (TSMC) weak third quarter outlook
continued to dampen sentiment in the semiconductor segment, AFX
Asia reported Friday.
The TSMC outlook also dragged NASDAQ lower overnight.
TCR-AP reported earlier this month that analysts are expecting
Chartered Semiconductor Manufacturing Ltd to post a second
quarter loss of about US$104.5 million, its sixth consecutive
quarterly loss.
The report said the analysts don't expect loss-making Chartered
to shift to the black until the second half of next year.
DebtTraders reports that Chartered Semiconductor Mnfg's 2.500%
convertible bond due in 2006 (CSM06SGN1) trades between 97.5 and
98.5. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=CSM06SGN1
DATACRAFT ASIA: Restructures Subsidiaries
-----------------------------------------
In a move to streamline its operations and improve efficiency,
Datacraft Asia will merge its two wholly-owned subsidiaries in
New Zealand, Datacraft (NZ) Limited and National Communications
Services Limited into one Company, Kelive reported Monday.
Similarly, two subsidiaries in Korea, Datacraft Korea Inc. and
Dasan Electronics Co. will also be merged into one.
The consolidations are purely for integration purposes and are
not expected to result in any material change to the financials
of the group. Kelive forecast the group to post a net loss of
US$8 million for the fiscal year 2002. The overall
telecommunications sector remains weak as infrastructure
spending has yet to normalize. Without a significant improvement
in end user demand, recovery would likely be relegated to FY03.
Kelive continues to favor Datacraft's long-term prospects,
however, the medium term outlook remains hazy. Trading Buy
opportunities only.
For more information on Kelive market analysis, go to
http://www.kelive.com/kelive/userview/Home.jsp
EXCEL MACHINE: Disposing of US Unit To Reduce Debt
--------------------------------------------------
The Board of Directors of Excel Machine Tools Ltd announced
Friday that its wholly-owned subsidiary, Tree Machine Tool
Company, Inc., has accepted an offer by S & C Electric Company
for the sale of its USA property at No 5251 W. Franklin Drive,
Franklin, WI 53132 USA (the Property} at a sale consideration of
US$1.88 million (the Consideration). The Consideration is
derived on a willing seller and willing buyer basis and
represents a loss of approximately US$334,943.00 over the book
value of the Property.
The disposal of the Property is in line with the Group's
continuing efforts to free up financial resources tied-up in
capital and consequently reduce the Group's gearing and
borrowing costs. The proceeds of the sale will be utilized for
working capital purposes and to reduce bank borrowings.
The disposal of the Property is not expected to have a material
effect on the earnings or the net tangible assets of the Group
for the current year.
None of the Directors and Substantial Shareholders of Excel has
any direct or indirect interest in the disposal.
TCR-AP reported earlier this month that due to the continued
weak market in the global economy, the Company expects to post a
loss for the first half of 2002.
The Group is taking steps to address the pressure on margins
through efforts to reduce costs and improve operational
efficiencies.
HONG LEONG: Reconstructs Shareholding, Group Structure
-------------------------------------------------------
On 30 October 2001, the Board of Directors of Hong Leong Asia
Ltd. announced that the Company entered into a conditional
agreement (the Agreement) with Hong Leong Investment Holdings
Pte. Ltd. and Hong Leong Enterprises Pte. Ltd. (collectively,
the Transferors), pursuant to which the Transferors agreed to
transfer to the Company the entire issued and paid-up share
capital of Hong Leong Corporation Limited, for an aggregate
consideration of S$140 million, subject to closing adjustments
(the Transfer). The consideration for the Transfer was to be
satisfied partially by the allotment and issue to the
Transferors or their appointee(s) of 130,000,000 new ordinary
shares of par value S$0.20 each in the Company at an issue price
of S$0.35 each (each a Consideration Share).
On 27 December 2001, the Board of Directors announced that the
Transfer had been completed. As some parts of the Reconstruction
were then still in the process of being implemented, the Company
had, according to the Agreement, only allotted and issued to
Hong Leong Corporation Holdings Pte Ltd (HLCH), an appointee of
the Transferors, 100,000,000 Consideration Shares. The remaining
30,000,000 Consideration Shares would be allotted and issued
once the Reconstruction is implemented in full.
On 28 March 2002, the Company and the Transferors entered into a
supplemental agreement to amend the completion date of the
Reconstruction from 31 March 2002 to 30 June 2002.
On 27 June 2002, the Company and the Transferors entered into a
second supplemental agreement to amend the completion date of
the Reconstruction from 30 June 2002 to 31 August 2002.
The Directors announced that that the Reconstruction has been
implemented in full and accordingly the balance 30,000,000
Consideration Shares have been allotted and issued to Hong Leong
Corporation Holdings Pte Ltd on 26 July 2002.
Meanwhile, HL-AMF Leisure (Malaysia) Sdn Bhd, a Malaysian
subsidiary of the Company, which was previously dormant, has
been struck off from the register of the Registrar of Companies
in Malaysia as of July 26, 2002.
L&M GROUP: Posts Notice of Shareholder's Interest
-------------------------------------------------
L&M Investment Ltd posted a notice of Director and Shareholder
Edward Seky Soeryadjaya's interest:
Date of notice to Company: 24 Jul 2002
Date of change of interest: 23 Jul 2002
Name of registered holder: The Central Depository (Pte) Ltd
Circumstance(s) giving rise to the interest: Open market
purchase
Shares held in the name of registered holder
No. of shares of the change: 500,000
percent of issued share capital: 0.09
Amount of consideration per share excluding brokerage,GST,stamp
duties,clearing fee: 0.03
No. of shares held before change: 1,705,333
percent of issued share capital: 0.31
No. of shares held after change: 2,205,333
percent of issued share capital: 0.4
Holdings of Director/Substantial Shareholder including direct
and deemed interest
Deemed Direct
No. of shares held before change: 18,230,000 1,705,333
percent of issued share capital: 3.36 0.31
No. of shares held after change: 18,230,000 2,205,333
percent of issued share capital: 3.36 0.4
Total shares: 18,230,000 2,205,333
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T H A I L A N D
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SOCON ENGINEERING: Business Reorganization Petition Filed
---------------------------------------------------------
The Petition for Business Reorganization of Socon Engineering
Company Limited (DEBTOR), engaged in machine installation and
machinery spare parts production, was filed to the Central
Bankruptcy Court:
Black Case Number 337/2543
Red Case Number 368/2543
Petitioner: Bank Thai Public Company Limited
Planner: Mr. Chaokdee Wongkaew
Debts Owed to the Petitioning Creditor: Bt974,342,743.86
Date of Court Acceptance of the Petition: May 4, 2000
Court Order for Business Reorganization and Appointment of
Planner: May 29, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: June 7, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette on June 22,
2000
Deadline for Creditors to submit Applications for Payment in
Business Reorganization: July 24, 2000
Deadline to object Applications for Payment in Business
Reorganization: August 7, 2000
Deadline for the Planner to submit the Business Reorganization
Plan to the Official Receiver: September 22, 2000
Court allowed the planner to expand the submitted date of the
Plan to the Official Receiver: October 24, 2000
Appointment Date of the Creditors' Meeting for the Plan
Consideration: January 10, 2001 at 9.30 am. Convention Room no.
1105, 11th Floor Bangkok Insurance Building
The Meeting had a special resolution accepting the
Reorganization Plan
Court had issued an order withdrew the reorganisation plan on
February 6, 2001
Contact: Mr. Chalermkait, Tel 6792525 Ext. 133
THAI PETROCHEMICAL: Court Rejects Ex-CEO's Petition to Oust EPL
---------------------------------------------------------------
The Bankruptcy Court on Friday officially dismissed a petition
filed by Mr. Prachai Leophairatana requesting that the
appointment of Effective Planner Limited, as Plan Preparer and
Plan Administrator, be declared void because EPL allegedly lacks
the appropriate qualifications. In the same dismissed petition,
Mr. Prachai Leophairatana proposed that EPL be replaced by TPI
Planner Limited.
The Court has affirmed Effective Planners Limited's
qualifications as Plan Administrator of TPI by
noting that:
"The Bankruptcy Court alluded to the court verdict dated 22
February 2001 addressing that the Bankruptcy Law defines a plan
administrator as an individual, juristic person, group, creditor
or debtor's executive, but it does not identify the
qualifications of a plan administrator. Any plan administrator
who is a limited company juristic entity, is entitled to be a
plan administrator of a debtor business. The court decided to
dismiss the petition to remove EPL as Plan Administrator of TPI,
as filed by the debtor's executive."
"According to the Supreme Court's decision which was announced
by the Bankruptcy Court on 10 June 2002, given the Plan
Administrator's qualifications according to the general law
and the suitability of the Plan Administrator of such business,
the Supreme Court referred this back to the Board of Investment
Office's letter stating that the Planner's operation in relation
to the Plan Administration is in the area of financial
consultation and advisory services. The Plan Administrator also
provides consultation for many financial institutions. It can be
justified that the Plan Administrator is skillful in the
financial economic area and therefore has full qualifications to
hold this position according to the law. The court approved the
rehabilitation plan and decided to dismiss the petition."
The Bankruptcy Court's decision on Friday confirmed that
Effective Planners Limited is qualified to serve as the court-
sanctioned Plan Administrator of TPI.
Go to http://www.bankrupt.com/misc/TCRAP_TPI0730.docto see a
copy of EPL's press release.
TPI POLENE: Issues Q202 Unreviewed Operating Results
----------------------------------------------------
TPI Polene Public Company Limited provided information regarding
the Company's unreviewed consolidated financial statements
for the second quarter 2002 ended June 30, 2002, as follows:
Total consolidated revenues were at Bt3,852 million in Q2/2002
compared to Bt4,252 million in Q2/2001, a decrease of 9.40%. The
Company realized net profit of Bt404 million or earning per
share of Bt0.80 in Q2/2002 compared to net loss of
Bt506 million or net loss per share of Bt1.00 during the same
period of the previous year. The substantial increase of 179.80%
was attributable to a reduction in interest burden, the
recognition of gain on the foreign exchange during the period
and the decline in the selling and administration expenses.
For the first six-month period ended June 30, 2002, the Company
reported net profit of Bt430 million or earning per share of
Bt0.85 compared to net loss of Bt1,363 million or net loss per
share of Bt2.69 in the same period of the previous year, a
substantial growth of 131.52%. As of June 30, 2002, the book
value per share was Bt34.07.
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors.
Copyright 2002. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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contained herein is obtained from sources believed to be
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*** End of Transmission ***