/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/040308.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 Monday, March 8, 2004, Vol. 7, No. 47 Headlines A U S T R A L I A AMP BANK: FY03 Results Within Expectations, Says Moody's AMP LIMITED: Discloses Demerger Reference Regarding HHG PLC AMP LIMITED: Analysts See Biggest Ever Second-half Loss AMP LIMITED: Expects Net Profit after Tax to Exceed AU$535M MAYNE GROUP: Director Ross Buckland Resigns SOUTHCORP LIMITED: Newcrest to Replace Southcorp on S&P/ASX PASMINCO LTD: Administrator Provides Update on Administration PASMINCO LIMITED: Issues Restructuring Update C H I N A & H O N G K O N G HI-TECH FORMS: Winding Up Petition Set April 7 LEAPTEK INVESTMENT: Cheong Ming Initiates Winding Up Petition I N D O N E S I A BANK NEGARA: Picks JP Morgan to Sell 30% Stake J A P A N KANEBO LIMITED: IRCJ May Provide Support This Week K.K. AKKESHI: Golf Course Files for Bankruptcy SOFTBANK CORPORATION: Offers 7-year, 400M Euro Bond K O R E A HANARO TELECOM: Offers Price Cuts on Telephone Services in March SK CORPORATION: Revises 4Q03 Net Loss to W67.1B M A L A Y S I A AOKAM PERDANA: FIC OKs Revised Scheme CHG INDUSTRIES: Releases Default Status Update PANCARAN IKRAB: PMBB OKs Share Exchange Proposal PROMET BERHAD: SC Rejects Restructuring Proposal SIN HENG: EGM Slated for March 26 UNITED CHEMICAL: Issues Default Status Update WOO HING: SC Approves Kamdar Proposal Extension P H I L I P P I N E S ABS-CBN BROADCASTING: To Pay PhP1B to Reduce Debt by 2006 MANILA ELECTRIC: Discloses Proposed Refund Scheme MUSIC CORPORATION: Issues Details on Quasi-Reorganization S I N G A P O R E ASIAN TECHNOLOGY: Creditors Must Submit Claims by April 5 CAYENNE ASIA: Issues Debt Claim Notice to Creditors BAKERY MART: Winding up Petition Hearing Set March 26 CHARTERED SEMICONDUCTOR: Post Changes in Shareholder's Interest PRINT N: Releases Debt Claim Notice to Creditors SEATOWN CORPORATION: Answers SGX Query SINGAMIP ENTERPRISE: Creditors First Meeting Set March 26 T H A I L A N D AHOLD: Divests Thai Operation & Withdraws from Asia Completely RAIMON LAND: Acquires Prime Beachfront Condominium Project SINO THAI: Expects BHT50B Sales This Year THAI MILITARY: Three-Bank Merger to Create 5th Largest Bank - - - - - - - - ================= A U S T R A L I A ================= AMP BANK: FY03 Results Within Expectations, Says Moody's -------------------------------------------------------- Moody's Investors Service said that AMP Bank Ltd.'s 2003 results were broadly in line with its expectations and AMP's own earlier guidance. Total net loss after income tax stood at A$5.542 billion, largely reflecting the write-downs and the loss on the demerger from its U.K. operations. AMP also reported operating results higher than anticipated in its demerger explanatory memorandum, chiefly in AMP Financial Services, which has benefited from cost base reductions, improvements in asset quality, improving investment processes and performance and more effective management of balance sheet risk. Following last month's announcement by AMP of its intention to buy back as much as A$1.25 billion in outstanding Income Securities, Moody's will continue to monitor the company's progress against stated plans and will view positively any further debt reduction initiatives. Moody's ratings on the AMP Group are unchanged (Baa1 senior debt/Baa2 subordinated debt for debt guaranteed by AMP Group Holdings, A1 IFSR at AMP Life), with a stable outlook. Hong Kong Donovan North Asst Vice President - Analyst Financial Institutions Group Moody's Asia Pacific Ltd. Telephone: 852-2509-0200 Facsimile: 852-2509-0165 Singapore Patrick Winsbury VP - Senior Credit Officer Financial Institutions Group Moody's Singapore Pte Ltd. Telephone: 65-6398-8300 Facsimile: 65-6398-8301 AMP LIMITED: Discloses Demerger Reference Regarding HHG PLC ----------------------------------------------------------- AMP Limited announced on Thursday its consolidated financial results for the full year ended 31 December 2003 which included, for the purposes of consolidation under Australian Generally Accepted Accounting Principles (AGAAP), data in relation to its demerged U.K. businesses for the period of January 1 up to December 12, 2003. HHG PLC, a UK company has stated previously that from demerger, UK Generally Accepted Accounting Principles (UK AGAAP), will be the only basis of reporting for HHG and that UK GAAP results for its life companies will be determined by applying the Modified Statutory Solvency Basis (MSSB) of Accounting. There are material differences between AGAAP and UK GAAP in relation to HHG which were summarized in section 7.6 of AMP's proposal to Demerge Explanatory Memorandum dated 16 October 2003. The HHG financial results for the full 12 months to 31 December 2003 determined under UK GAAP are currently being prepared and for Life Services, are expected to also include Embedded Values and Realistic Balance Sheets. HHG's 2003 results announcements is expected to be complete and lodged with the London and Australian Stock Exchanges on 31 March 2004. The HHG results announcement and additional material will be made available on www.hhg.com. The annual report will be mailed to shareholders from late-April 2004. Further Information Investor Enquiries: Gail Williamson HHG Investor Relations Telephone: +44 207 818 5310 Media Enquiries: UK Alex Child-Villiers Financial Dynamics +44 207 7269 7107 Australia Cannings +61 2 9252 0622 AMP LIMITED: Analysts See Biggest Ever Second-half Loss ------------------------------------------------------- Write-downs in the value of AMP Ltd.'s spun-off U.K. businesses may plunge the life insurer into a record half-year loss, analysts said, according to Bloomberg News. Based on the median estimate of seven analysts surveyed by Bloomberg, the Australian company may record a AU$3.2 billion (US$2.4 billion) loss in the second half, the biggest in its 155-year history. The company reported losses of AU$1.2 billion for the second half last year. AMP spun off its U.K. units after a three-year slump in the FTSE 100 Index. It separated from its Australian operation Pearl Assurance, London Life, NPI and Henderson Global investors into London-based HHG plc. This follows the erosion of the company's capital and the fall of its stock value to more than 75%. (TROUBLED COMPANY REPORTER EUROPE, Vol. 7, Issue No. 43, March 2, 2004) AMP LIMITED: Expects Net Profit after Tax to Exceed AU$535 Mln -------------------------------------------------------------- AMP Limited provided an update on its annual results for the year to December 31, 2003. These results are due for finalization and release on March 4, 2004. AMP Chief Executive Officer Andrew Mohl said the underlying business results were now expected to be considerably higher than the pro-forma forecasts provided in the Explanatory Memorandum for the demerger. The Explanatory Memorandum forecast net profit after tax (before goodwill amortization and other items) in a range from AU$402 million to AU$535 million. AMP indicated at the time the Explanatory Memorandum was released on October 16, 2003 that it expected the result to be closer to the top end of the forecast range. Mr. Mohl said it was now likely that net profit after tax (before goodwill amortization and other items) would be in the range of AU$600 million to AU$620 million. "The better-than-expected profit result reflects, in roughly equal parts, improved business unit performance, particularly in the final months of the year, and a number of positive one-off items that emerged in the end of year review process," Mr. Mohl said. "The stronger business unit performance has seen AMP Financial Services, AMP Capital Investors and Cobalt/Gordian all exceed the top end of their respective ranges provided in the Explanatory Memorandum." Mr. Mohl said the balance sheet of AMP was also significantly stronger at year-end than had been anticipated at the time of the release of the Explanatory Memorandum. In particular, AMP Life was in a position at the end of December 2003 to transfer AU$725 million to AMP Limited due to: (a) higher operating profits; (b) capital management initiatives; (c) investment out performance; and (d) improved market conditions. The solvency position of AMP Life, even after this transfer of AU$725 million, was significantly stronger at the end of 2003 than mid-year. It was also stronger than at the end of 2001 and 2002 due to the same factors. ACCELERATION OF DEBT REPAYMENT PROGRAM AMP currently has debt of AU$3.2 billion. The company indicated in the Explanatory Memorandum that it intended to pay down a net AU$600 million of existing debt securities to achieve the Explanatory Memorandum pro-forma debt level of AU$2.6 billion with the nature and allocation of this restructure to be determined. With its improved balance sheet, AMP is now in a position to pay down over AU$1.2 billion of external debt, in effect immediately, and reduce its debt to around AU$2 billion. AMP has determined that the first step to achieve this reduction is to buy back as much of its AU$1.24 billion in outstanding Income Securities (AMQHA) as possible. AMP will make an offer to all Income Securities holders to buy back their holdings at a premium to the current market price. Mr. Mohl said AMP was taking this step because interest rate changes have increased the cost of the Income Securities to the company relative to other debt instruments, and it has too much hybrid debt, most of which is Income Securities. AMP therefore plans to write to all Income Securities holders with an offer to buy back their holdings at $98.00 plus accrued interest. The closing price of the securities on Friday February 20, 2004 was AU$94.10. Income Securities holders do not need to accept this offer, as the securities are perpetual instruments that will continue to trade on the Australian Stock Exchange while they are on issue. AMP has separately reached agreement with a third party who was contesting the impact of the demerger on the status of AMP's Income Securities in the Federal Court. AMP will acquire the party's stake at the same price of AU$98.00 plus accrued interest and the party has agreed to cease its legal proceedings. "With the demerger now successfully completed, our focus is on rebuilding and rejuvenating AMP as quickly as possible," Mr. Mohl said. "The improved performance in underlying results and acceleration in our ability to repay debt are both very good news for our shareholders." CONTACT: AMP LIMITED Level 24, 33 Alfred Street Sydney NSW 2000 Australia ABN Phone: 49 079 354 519 Investor Inquiries: Mark O'Brien Phone: +61 2 9257 7053 MAYNE GROUP: Director Ross Buckland Resigns ------------------------------------------- Mayne Group Limited announced on Friday the resignation of its Non-Executive Director Ross Buckland with immediate effect. Mr. Peter Willcox, the Chairman of Mayne said, "The Board accepts Sir Ross's decision to resign and notes his reasons for doing so." "All of the other directors affirm their support for the decision to acquire the products from aaiPharma because it clearly fits with Mayne's strategy of becoming a global specialty pharmaceutical company with a robust domestic diagnostic services business, and the acquisition is financially attractive to Mayne's shareholders," Mr. Willcox said. A copy of Mr. Ross Buckland's letter is located at http://bankrupt.com/misc/tcrap_mayne0305.pdf Media and investor enquiries: Larry Hamson General Manager Corporate Relations Phone: (+61) 3 9868 0380 Mob: (+61) 0407 335 907 SOUTHCORP LIMITED: Newcrest to Replace Southcorp on S&P/ASX ----------------------------------------------------------- Wine group Southcorp Limited will lose its spot on the S&P/ASX 50 index and Tempo Services will be dropped from the S&P/ASX 200, Standard & Poor's said on Friday. Also leaving the S&P/ASX 200, the Australian share market's benchmark index, will be Amalgamated Holdings, Austal, Grand Hotel Group, The Gribbles Group, Prime Television and Skilled Engineering. They will be replaced in the benchmark index by Foster's Group spin-off Australian Leisure and Hospitality Group, Galileo Shopping America Trust, IOOF Holdings, Macquarie DDR Trust, Multiplex Group, Repco Corporation and Worley Group. Newcrest Mining will replace Southcorp on the S&P/ASX 50. PASMINCO LTD: Administrator Provides Update on Administration ------------------------------------------------------------- Ferrier Hodgson refer to previous correspondence and now provide an update on the status of the Pasminco Administration. TAX POSITION As advised previously, Ferrier Hodgson has received a tax ruling from the Australian Taxation Office (ATO) advising that despite the Deed Administrators (DA) making a declaration deeming Pasminco shares worthless, a Capital Gains Tax (CGT) event has not occurred under current legislation. This meant that to date, Pasminco shareholders have been unable to claim a tax loss on their shares. Recently, however, the Australian Taxation Office issued an Interpretative Decision (ATOID 2003/1024) that may possibly allow Pasminco shareholders to claim a tax loss on their shares. A copy of ATOID 2003/1024 is available at: http://law.ato.gov.au/atolaw/search.htm To access the Interpretative Decision, place a tick in the box marked 'ATO Interpretative Decision' and type '2003/1024' in the box located next to the search button. Note: Shareholders must seek their own taxation advice in relation to the application of ATOID 2003/1024 to their individual circumstances. The Deed Administrators, (or any member or employee of Ferrier Hodgson), are not in any way providing tax advice in respect of this matter. EQUITY AND FLOAT OPTION As shareholders may be aware, an announcement was made to the Australian Stock Exchange on January 29m 2004 confirming that the Pasminco Committee of Creditors has approved the Deed Administrators' decision to proceed with the Equity and Float Option for the Pasminco Group. This option involves a new company, Zinifex Limited, acquiring certain shares and other interests in entities that operate key assets in the Pasminco Group. It is intended that the shares in Zinifex Limited will be sold through an Initial Public Offering. Members of the public, including Pasminco shareholders, may apply for shares in Zinifex Limited. Ferrier Hodgson P D McCluskey Deed Administrator Tel. 1300 132 554 For more information, go to http://bankrupt.com/misc/tcrap_pasminco0305.pdf PASMINCO LIMITED: Issues Restructuring Update --------------------------------------------- On March 1, 2004, a prospectus was lodged with the Australian Securities and Investments Commission (ASIC) to facilitate the decision of the Deed Administrators (DA) of Pasminco Limited to proceed with an equity and float restructure proposal, a Company statement said. Under the restructuring proposal, a new company, Zinifex Limited (Zinifex), will acquire all the shares and other interests in certain Pasminco group firms to form a new Zinifex group, subject to: (1) A successful initial public offering (IPO) of shares in Zinifex to the Australian public and other retail investors and to domestic and international institutions; and (2) Zinifex listing on Australian Stock Exchange Limited (ASX). The IPO and the Australian Stock Exchange (ASX) listing of Zinifex will be completed before April 30, 2004. The proceeds of the IPO will be used to repay the administration working capital facilities and distribute dividends to pre- administration creditors admitted to proof. As pre- administration creditors are expected to receive distributions of substantially less than 100 cents for every dollar of their claims, shareholders of Pasminco will not receive any return of capital on its winding up. The shares in Pasminco Limited do not have, and are not ever expected to have, any value. Ultimately the various companies and other entities not forming part of the new Zinifex group will be deregistered or wound up or both after a process of realizing their assets and finalizing the claims of pre-administration creditors is completed. This process is expected to take a number of years after the completion of the IPO and the listing of Zinifex. Zinifex shares will be offered for sale under a Prospectus and an Institutional Offering Memorandum. This press release does not constitute an offer to sell, or a solicitation of an offer to buy, securities in any of the shares of Zinifex offered will not be or have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. ============================ C H I N A & H O N G K O N G ============================ HI-TECH FORMS: Winding Up Petition Set April 7 ---------------------------------------------- The petition to wind up Hi-tech Forms Limited is set for hearing before the High Court of Hong Kong on April 7, 2004 at 9:30 in the morning. Wan Wai Sze, whose registered office is located at Room 932, 9/F., Wu Boon House, Wu King Estate, Tuen Mun, New Territories, Hong Kong, filed the petition on April 7, 2004. The Petitioners' solicitor is Tam Lee Po Lin, Nina of 34th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai Hong Kong. Any person who intends to appear at the hearing of the petition must serve or send by post to Solicitors Tam Lee Po Lin, Nina a notice in writing not later than six o'clock in the afternoon of the 6th day of April 2004 (the day before the petition hearing). LEAPTEK INVESTMENT: Cheong Ming Initiates Winding Up Petition ------------------------------------------------------------- The petition to wind up Leaptek Investment Company Limited is set for hearing before the High Court of Hong Kong on March 31, 2004 at 9:30 in the morning. Cheong Ming Investment Company Limited and Wah Hoi Construction Limited, whose registered office is located at Top Floor, Chinachem Golden Plaza, No. 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong, filed the petition on January 29, 2004. The Petitioners' solicitors are Ford Kwan and Company of Rooms 1202-6, 12th Floor, Wheelock House, 20 Pedder Street, Central Hong Kong. Any person who intends to appear at the hearing of the petition must serve or send by post to Solicitors Ford Kwan and Company a notice in writing not later than six o'clock in the afternoon of the 30th day of March 2004 (the day before the petition hearing). ================= I N D O N E S I A ================= BANK NEGARA: Picks JP Morgan to Sell 30% Stake ---------------------------------------------- Indonesia has picked JP Morgan and Bahana Securities to handle the 4.8 trillion rupiah ($566 million) sale of a 30 percent stake in the nation's second-largest bank, PT Bank Negara Indonesia Tbk (BNI), according to the Indo Exchange on Tuesday. "Yes, the government, as a shareholder, has appointed JP Morgan and Bahana Securities as the underwriters for the sale," BNI President Sigit Pramono told Reuters on Tuesday. He said the divestment would be made through a secondary public offering scheduled for the end of June or early July. Mr.Pramono said the management would propose a rights issue to raise one trillion rupiah in addition to the stake sale, adding the rights issue was expected to take place around the same time as the secondary offering. The government owns more than 99 percent of BNI's shares and would take the entire proceeds from the stake sale, estimated at the current market price at around 4.8 trillion rupiah. The newly appointed president of the bank was optimistic the country's first direct presidential election in July would not adversely affect the divestment. "Analysts say the time frame that we set is good," he said. By midday on Thursday, BNI shares were up 2.08 percent at 1,225 rupiah. ========= J A P A N ========= KANEBO LIMITED: IRCJ May Provide Support This Week -------------------------------------------------- The Industrial Revitalization Corporation of Japan (IRCJ) may provide as much as 380 billion yen (US$3.43 billion) in financial support to Kanebo Limited anytime this week, Bloomberg News reported on Friday. The restructuring plan involves streamlining and additional debt waivers by lenders. The size of the debt waivers will be determined after the IRCJ assesses Kanebo's value, including assets. Sumitomo Mitsui Banking, Kanebo's main bank, and other lenders may be asked to forgive tens of billions of yen or more in loans. K.K. AKKESHI: Golf Course Files for Bankruptcy ---------------------------------------------- K.K. Akkeshi Golf Club has been declared bankrupt, according to Teikoku Databank America. The golf course, which is located at Kushiro-chi, Hokkaido 085-006, Japan, has total liabilities of US$25 million. SOFTBANK CORPORATION: Offers 7-year, 400M Euro Bond --------------------------------------------------- Softbank Corporation has determined the terms of issue of its Euro-denominated Senior Notes due year 2011: (1) Aggregate amount of issue: 400 million euro / Yen equivalent: approximately 53.8 billion yen, exchange rate: 1 euro = 134.47 yen) (2) Coupon rate: 9.375% (Yen equivalent: approximately 6.5%) (3) Credit rating: BB. Standard & Poor's B1 Moody's Investors Service According to UK Wire, the closing date is now rescheduled to March 8, 2004. The purpose of this press release is to make a general public announcement of the offering of the notes held by the Company. It has not been prepared for the purpose of soliciting investments in the notes. There is no offering or secondary sale of the notes in Japan. Also, this announcement does not constitute an offer of securities for sale in any region, including the United States. The securities will not be and have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or an exemption from registration. No public offering of securities will be made in the United States in connection with the above-mentioned transaction. ========= K O R E A ========= HANARO TELECOM: Offers Price Cuts on Telephone Services in March ---------------------------------------------------------------- Broadband Internet operator Hanaro Telecom Inc. will offer price cuts in its traditional telephone service this month, as part of a drive to lure customers from rival KT Corporation, according to Yonhap News on Thursday. Customers will receive 50 percent deductions on service fees, such as per-call costs, and other freebies. However, there will be no discount on the basic monthly subscription price. SK CORPORATION: Revises 4Q03 Net Loss to W67.1B ----------------------------------------------- SK Corporation revised its fourth-quarter net loss to 67.1 billion won ($57.3 million) from preliminary figures of 73.5 billion won, according to Bloomberg News. The Company also revised its operating profit in the quarter ending December 31 to 302.5 billion won from a preliminary 307.1 billion won, the company said in a regulatory filing. Sales were unchanged at 3.64 trillion won. SK said in January higher profit from processing crude oil into fuels trimmed net losses in the fourth quarter as bailouts of two ailing affiliates sapped 267 billion won from earnings. In the fourth quarter of 2002, the company posted a net loss of 345.2 billion won. Full-year net income was revised to 15.2 billion won from preliminary 8.8 billion won, while operating to 671.3 billion won from 675.9 billion won. =============== M A L A Y S I A =============== AOKAM PERDANA: FIC OKs Revised Scheme ------------------------------------- The Malaysian Foreign Investment Committee (FIC) has approved the proposed revised scheme of Aokam Perdana Berhad. The Company and its advisers, Messrs. Southern Investment Bank Berhad (SIBB) are working on the implementation of the proposals. The Company also announced that there are no material changes in the financial situation of the Company and that the issue of continual default remains unresolved. CHG INDUSTRIES: Releases Default Status Update ---------------------------------------------- CHG Industries Berhad announced that the group's defaulted interest payments under the terms of the debt restructuring agreement dated July 9, 2003 (DRA) as at February 29, 2004 was approximately RM3.8 million. On the same date, the Group had default trade bills of RM0.6 million. The Company will make periodic announcement on a monthly basis to the Exchange of the current status of the default and its steps taken to address the default until such time when it is remedied. PANCARAN IKRAB: PMBB OKs Share Exchange Proposal ------------------------------------------------ Public Merchant Bank Berhad (PMBB) announced that the High Court of Malaya had on March 2, 2004, agreed to grant Pancaran Ikrab Bhd (PIB) an extension of time to convene a meeting for its shareholders for the purpose of considering and, if thought fit, approving with or without modification, the proposed share exchange pursuant to Section 176 of the Companies Act, 1965 for six (6) months from February 5, 2004 to August 4, 2004. PROMET BERHAD: SC Rejects Restructuring Proposal ------------------------------------------------ The Kuala Lumpur Stock Exchange, upon consultation with the Securities Commission (SC), had earlier notified the Company on February 11, 2004 of its decision to await the outcome of Promet Berhad's appeal to the SC against the SC's decision to reject the Company's application for the approval of its regularization plans (Promet's Appeal). The Exchange also notified the Company that in the event any one of the circumstances set out below occurs, the de-listing of the securities of Promet from the Official List of the Exchange would be effected without any further representations from Promte and without further consideration of the matter by the Exchange: a. PROMET's Appeal to the SC is not allowed; or b. PROMET fails to obtain the approval from any of the other regulatory authorities necessary for the implementation of its regularization plans. The SC via its letter dated 16 February 2004 decided not to approve PROMET's Appeal against its decision to reject PROMET's proposed restructuring scheme. In the circumstances and in accordance with the Exchange's earlier decision, the securities of PROMET shall be de-listed from the Official List of the Exchange as the Company does not have an adequate level of financial condition to warrant continued listing on the Official List of the Exchange. Accordingly, please be informed that the securities of the above Company will be removed from the Official List of the Exchange at 9.00 am on Friday, March 5, 2004. With respect to the securities of PROMET, which are currently deposited with the Malaysian Central Depository Sdn Bhd (MCD), the securities may remain deposited with the MCD notwithstanding the de-listing of the securities from the Official List of the Exchange. It is not mandatory for the securities of a company, which has been de-listed to be withdrawn from MCD. Alternatively, shareholders of PROMET who intend to hold their securities in the form of physical certificates can withdraw these securities from their Central Depository System accounts maintained with the MCD at anytime after the securities of PROMET has been de-listed from the Official List of the Exchange. This can be effected by the shareholders submitting an application form for withdrawal in accordance with the procedures prescribed by MCD. The shareholders can contact any Participating Organization of the Exchange and/or MCD's helpline at 03-20717711 or 03-20717723 for further information on the withdrawal procedures. SIN HENG: EGM Slated for March 26 --------------------------------- The Extraordinary General Meeting (EGM) of Sin Heng Chan (Malaya) Berhad (Special Administrators Appointed) will be held at Dewan Berjaya, Bukit Kiara Equestrian & Country Resort, Jalan Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur on Friday, March 16, 2004 at 3 o'clock in the afternoon for the purpose of considering and, if thought fit, passing the following ordinary resolutions: ORDINARY RESOLUTION 1 PROPOSED ESTABLISHMENT OF NEW EMPLOYEES' SHARE OPTION SCHEME (PROPOSED ESOS) "THAT, subject to the approvals in principle of the Malaysia Securities Exchange Berhad (MSEB) for the listing of and quotation for the new ordinary shares of RM1.00 each (Shares) in the Company to be issued pursuant to the exercise of the options hereunder, the Directors of the Company be and are hereby authorized: (a) To establish and administer the Proposed ESOS for the benefit of the eligible Executive Directors and employees of the Company and its eligible subsidiary companies (excluding subsidiaries which are dormant) (SHCM Group) to be known as Sin Heng Chan (Malaya) Berhad Employees' Share Option Scheme (to be constituted by the Bye-Laws, a copy of which is set out in Appendix I of the Circular to Shareholders of the Company dated 5 March 2004 in relation to this resolution and to sign and execute all documents as deemed fit and do all acts as may be required for or in connection with and to give effect to the Proposed ESOS with full powers to assent to any conditions, modifications, variations and/or amendments in any manner as may be required or agreed to give effect to the Proposed ESOS; (b) To make the necessary applications to the MSEB for the listing of and quotation for the new SHCM Shares in the Company to be allotted and issued pursuant to the exercise of the options to be granted by the Company under the Proposed ESOS and do all things necessary at the appropriate time or times to the MSEB for permission to deal in and for quotation for any new SHCM Shares which may hereafter from time to time be allotted and issued pursuant to the Proposed ESOS and that the said new SHCM Shares will, upon allotment and issue, rank pari passu in all respects with the then existing issued and paid-up share capital of the Company except that the new SHCM Shares so allotted will not rank for any dividends, rights, allotments or other distributions declared, made or paid to shareholders prior to the date of allotment of the new SHCM Shares arising from the exercise of the options and will be subject to all the provisions of the Articles of Association of the Company relating to transfer, transmission and otherwise; (c) To issue and allot such number of new SHCM Shares from time to time in the duration of the Proposed ESOS to the eligible Executive Directors and employees of the SHCM Group pursuant to the exercise of their options under the Proposed ESOS while this approval is in force provided that the total number of the new SHCM Shares to be issued under the Proposed ESOS shall not exceed ten percent (10%) of the issued and paid-up share capital of the Company or any other number as may be permitted by the Securities Commission, at any time during the existence of the Proposed ESOS subject always to the following: (i) Not more than fifty percent (50%) of the new SHCM Shares available under the Proposed ESOS shall be allocated, in aggregate, to the Executive Directors and other senior management of the SHCM Group; and (ii) Not more than ten percent (10%) of the new SHCM Shares available under the Proposed ESOS would be allocated to any individual eligible Executive Directors or employee of the SHCM Group, who either singly or collectively through his/her associates holds twenty percent (20%) or more of the issued and paid-up share capital of the Company; and (d) To modify and/or amend the Proposed ESOS from time to time provided that such modifications and/or amendments are effected in accordance with the provisions of the Bye-Laws of the Proposed ESOS relating to modifications and/or amendments and to do all such acts and to enter into all such transactions, arrangements and agreements as may be necessary or expedient in order to administer and give full effect to the Proposed ESOS." ORDINARY RESOLUTION 2 PROPOSED ALLOCATION OF OPTIONS TO TUAN SYED OMAR BIN SYED ABDULLAH "THAT, subject to the passing of Ordinary Resolution 1 above, the Directors of the Company be and are hereby authorized at any time, and from time to time for the existence of the Proposed ESOS, to offer and to grant to Tuan Syed Omar Bin Syed Abdullah, the Chairman and Executive Director of the Company, options to subscribe for such number of new SHCM Shares of the Company available under the Proposed ESOS as determined by the committee to be appointed to administer the Proposed ESOS pursuant to Bye- Laws of the Proposed ESOS (ESOS Committee) and if such options are accepted and exercised, to allot and issue such number of new SHCM Shares of the Company to him under the Proposed ESOS, subject always to: (i) Not more than fifty percent (50%) of the new SHCM Shares under the Proposed ESOS shall be allocated, in aggregate, to Executive Directors (including Tuan Syed Omar Bin Syed Abdullah) and other senior management of the SHCM Group; and (ii) Not more than ten percent (10%) of the new SHCM Shares available under the Proposed ESOS would be allocated to any individual eligible employee and Executive Directors of the SHCM Group (including Tuan Syed Omar Bin Syed Abdullah) who singly or collectively through his associates holds twenty percent (20%) or more of the issued and paid-up share capital of the Company. ORDINARY RESOLUTION 3 PROPOSED ALLOCATION OF OPTIONS TO DATO' CHOO KENG WENG "THAT, subject to the passing of Ordinary Resolution 1 above, the Directors of the Company be and are hereby authorized at any time, and from time to time for the existence of the Proposed ESOS, to offer and to grant to Dato' Choo Keng Weng, the Managing Director of the Company, options to subscribe for such number of new SHCM Shares of the Company available under the Proposed ESOS as determined by the ESOS Committee and if such options are accepted and exercised, to allot and issue such number of new SHCM Shares of the Company to him under the Proposed ESOS, subject always to: (i) Not more than fifty percent (50%) of the new SHCM Shares under the Proposed ESOS shall be allocated, in aggregate, to Executive Directors (including Dato' Choo Keng Weng) and other senior management of the SHCM Group; and (ii) Not more than ten percent (10%) of the new SHCM Shares available under the Proposed ESOS would be allocated to any individual eligible employee and Executive Directors of the SHCM Group (including Dato' Choo Keng Weng) who singly or collectively through his associates holds twenty percent (20%) or more of the issued and paid-up share capital of the Company. ORDINARY RESOLUTION 4 PROPOSED ALLOCATION OF OPTIONS TO DATO' GHAZALI BIN SAIBOO "THAT, subject to the passing of Ordinary Resolution 1 above, the Directors of the Company be and are hereby authorized at any time, and from time to time for the existence of the Proposed ESOS, to offer and to grant to Dato' Ghazali Bin Saiboo, the Executive Director of the Company, options to subscribe for such number of new SHCM Shares of the Company available under the Proposed ESOS as determined by the ESOS Committee and if such options are accepted and exercised, to allot and issue such number of new SHCM Shares of the Company to him under the Proposed ESOS, subject always to: (i) not more than fifty percent (50%) of the new SHCM Shares under the Proposed ESOS shall be allocated, in aggregate, to Executive Directors (including Dato' Ghazali Bin Saiboo) and other senior management of the SHCM Group; and (ii) not more than ten percent (10%) of the new SHCM Shares available under the Proposed ESOS would be allocated to any individual eligible employee and Executive Directors of the SHCM Group (including Dato' Ghazali Bin Saiboo) who singly or collectively through his associates holds twenty percent (20%) or more of the issued and paid-up share capital of the Company. For more information, go to http://bankrupt.com/misc/tcrap_sinheng0305.doc UNITED CHEMICAL: Issues Default Status Update --------------------------------------------- The Board of Directors of United Chemical Industries Berhad (UCI) said there are no new significant developments in relation to the various defaults in payment further to the announcement on February 6, 2004. The Board of Directors of UCI would like to further provide an update on the details of all facilities currently in default in compliance with Section 3.1 of Practice Note 1/2001. For a copy of its outstanding loans in default, go to http://bankrupt.com/misc/tcrap_uci0305.xls This announcement is dated 1 March 2004. WOO HING: SC Approves Kamdar Proposal Extension ----------------------------------------------- Commerce International Merchant Bankers Berhad refer to its announcements dated September 17, 2003 and February 6, 2004 in relation to Woo Hing Brothers (Malaya) Berhad (WHB)'s Kamdar Proposals. On behalf of the Special Administrators of WHB, Commerce International Merchant Bankers Berhad announced that the Securities Commission, via its letter dated March 3, 2004, has approved a second extension of time of six (6) months up to 6 August 2004 to complete the implementation of the Kamdar Proposals. Collectively referred to as the "Kamdar Proposals" are: (i) Proposed acquisitions; (ii) Proposed share swap; (iii) Proposed restricted offer for sale; (iv) Proposed cash and securities transfers; (v) Proposed placement; (vi) Proposed put option; (vii) Proposed transfer of listing status; and (viii) Proposed transfer to main board This announcement is dated 4 March 2004. ===================== P H I L I P P I N E S ===================== ABS-CBN BROADCASTING: To Pay PhP1B to Reduce Debt by 2006 --------------------------------------------------------- Broadcast firm ABS-CBN Broadcasting Corporation plans to retire the bulk of its outstanding debt worth 5.8 billion pesos within the next two years, the Philippine Daily Inquirer reports, quoting company sources. About PHP2.1 billion of the debt will fall due this year, the report quotes the sources as saying. Of this amount, the company plans to settle PHP1 billion this month and the balance later in the year. Another PHP2 billion will be paid in 2005 to reduce the company's obligations to PHP1.7 billion by 2006, the sources said, according to the report. MANILA ELECTRIC: Discloses Proposed Refund Scheme ------------------------------------------------- Manila Electric Company (Meralco) will file an application next week with the Energy Regulatory Commission its proposed scheme for the last phase of the 30-billion-peso refund for overcharges, which involve commercial and industrial customers, The Philippine Daily Inquirer reported on Friday. Meralco refund task force Chief Leonardo Mabale in a telephone interview on Thursday said that the proposal would involve a two -pronged approach: (1) Crediting to the customers' future bills and (2) The issuance of refund notes to commercial and industrial customers The customers are only allowed a certain volume of kilowatt-hour (kWh) usage, those exceeding the volume cut-off will either have the refund credited to their future bills or get it in the form of financial instruments, he added. "The refund is still a top priority because it is a commitment, but the company is also worried about their cash flows. Meralco is still determining the best possible way of implementing the fourth and last phase of the refund as this could impact adversely on their cash flow. The company has difficulties in terms of funds because of the Supreme Court TRO, which forced them to delay some refinancing", Mr. Mabale said. The court earlier issued a temporary restraining order on Meralco's 12-centavo-per kWh hike. He said Meralco was even considering accelerating the implementation of the last phase of the refund from July 2005 to May 2005, but this might be difficult to do because of the Supreme Court order. MUSIC CORPORATION: Issues Details on Quasi-Reorganization --------------------------------------------------------- This in reference to Circular for Brokers Nos. 3307-2003 dated October 16, 2003 4018-2003, dated December 18, 2003, 404-2004 dated January 28, 2004 and 734-2004 dated February 13, 2004, pertaining to the approval by the Board of Directors, Stockholders and the Securities and Exchange Commission (SEC) of Music Corporation's (MUSX) Quasi-Reorganization, Change in Name, Primary Purpose and the corresponding amendments in the Company's Articles of Incorporation. In relation thereto the Company, in a letter dated March 2, 2004 through its legal counsel, Soo Gutierrez Leogardo & Lee, provided the Exchange additional information regarding the Quasi-Reorganization. For more information, go to http://bankrupt.com/misc/musiccorporation030304.pdf ================= S I N G A P O R E ================= ASIAN TECHNOLOGY: Creditors Must Submit Claims by April 5 --------------------------------------------------------- The creditors of Asian Technology Resources Pte Ltd (In Members' Voluntary Liquidation) are required by April 5, 2004 to send in their names and addresses and the particulars of their debts or claims and the names and addresses of their solicitors (if any) to its Liquidator Khoo Boo Leok c/o 9 Temasek Boulevard, #10- 01/03 Suntec Tower 2, Singapore 038989, and if so required by notice in writing from the said Liquidator, are by their solicitors or personally to come in and prove the said debts or claims at such time and place as shall be specified in such notice or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. The Singapore Government Gazette announcement is dated March 5, 2004. CAYENNE ASIA: Issues Debt Claim Notice to Creditors --------------------------------------------------- The creditors of Cayenne Asia Pacific Pte Ltd (In Members' Voluntary Liquidation) are required by April 5, 2004 to send in their names and addresses and the particulars of their debts or claims and the names and addresses of their solicitors (if any) to its Liquidator Khoo Boo Leok c/o 9 Temasek Boulevard, #10- 01/03 Suntec Tower 2, Singapore 038989, and if so required by notice in writing from the said Liquidator, are by their solicitors or personally to come in and prove the said debts or claims at such time and place as shall be specified in such notice or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. The Singapore Government Gazette announcement is dated March 5, 2004. BAKERY MART: Winding up Petition Hearing Set March 26 ----------------------------------------------------- The petition to wind up Bakery Mart Pte Ltd. is set for hearing before the High Court of the Republic of Singapore on March 26, 2004 at 10 o'clock in the morning. Culina Pte Ltd., a creditor, whose address is located at 24 Senoko Way, Singapore 758046, filed the petition with the court on March 1, 2004. The Petitioner's solicitors are Wong Tan & Molly Lim LLC of 80 Robinson Road #17-02, Singapore 068898. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Wong Tan & Molly Lim LLC a notice in writing not later than twelve o'clock noon of the 25th day of March 2004 (the day before the day appointed for the hearing of the petition). The Singapore Government Gazette announcement is dated March 5, 2004. CHARTERED SEMICONDUCTOR: Post Changes in Shareholder's Interest --------------------------------------------------------------- Chartered Semiconductor Manufacturing Limited (CSM) posted a notice of changes in Director Robert E La Blanc's interests: PART I 1. Date of notice to issuer: 04/03/2004 2. Name of Director: Robert E La Blanc PART II 1. Date of change of interest: 03/03/2004 2. Name of Registered Holder: Robert E La Blanc 3. Circumstance(s) giving rise to the interest or change in interest: 4. Information relating to shares held in the name of the Registered Holder: No. of shares held before the change: 48,384 As a percentage of issued share capital: 0.0019 No. of shares which are the subject of this notice: 41,870 As a percentage of issued share capital: 0.0017 Amount of consideration (excluding brokerage and stamp duties) per share paid or received: S$0.86 No. of shares held after the change: 90,254 As a percentage of issued share capital: 0.0036 PART III 1. Date of change of interest: 2. The change in the percentage level: From % to % 3. Circumstance(s) giving rise to the interest or change in interest: 4. A statement of whether the change in the percentage level is the result of a transaction or a series of transactions. PART IV 1. Holdings of Substantial Shareholder, including direct and deemed interest: Direct Deemed No. of shares held before change: 48,384 0 % of issued share capital: 0.0019 0 No. of shares held after change: 90,254 0 % of issued share capital: 0.0036 0 PRINT N: Releases Debt Claim Notice to Creditors ------------------------------------------------ The creditors of Print N Etch Pte Ltd (In Members' Voluntary Liquidation), whose debts or claims have not already been admitted, are required on or before April 5, 2004 to submit particulars of their debts or claims to its Liquidator Lim Say Wan c/o 6 Shenton Way, #32-00 DBS Building Tower Two, Singapore 068809. In default of complying with this notice they will be excluded from the benefit of any distribution made before their debts or claims are proved or their priority is established and from objecting to the distribution. SEATOWN CORPORATION: Answers SGX Query -------------------------------------- Seatown Corporation Ltd announced on February 27, 2004 its un- audited full year financial statements on the consolidated results for the year ended September 30, 2003. The Company has received a request from Singapore Exchange Securities Trading Ltd (SGX) to clarify certain matters, which are set out in this announcement. The questions from the SGX are reproduced below, with the Company's responses. Question: 1 (a) Please clarify whether the gain on disposal of subsidiaries of S$7.8 million relate to the sale of Seatown Foundation Engineering Pte Ltd and its subsidiaries. Also, please state how the gain was derived. Response: The gain on disposal of subsidiaries of S$7.783 million relate significantly from the sale of Seatown Foundation Engineering Pte Ltd and its subsidiaries. The gain on disposal of subsidiaries was derived from: S$'000 Gain on disposal of Seatown Foundation 6,410 Engineering Pte Ltd and its subsidiaries Gain on deemed disposal of Tri-Mix Pte Ltd 1,228 Gain on deemed disposal of Pacific 145 Can Manufacturing Pte Ltd and its subsidiary 7,783 The gain was a result of the reversals of the previous years losses of the subsidiaries booked-in in excess of the cost of investments. Question: 1 (b) Please provide the underlying factors that contributed to the loss on disposal of fixed assets of S$0.6 million, impairment loss of fixed assets of S$1.2 million and provision for contingent liabilities of S$2 million. Also, kindly explain for the decrease in fixed assets and the increase in other payables and accrued expenses. Response: The loss on disposal of fixed assets of $0.6 million was mainly due to losses from disposals of plant and machinery of S$0.7 million from Tri-Mix Pte Ltd which has substantially reduced its operations during the year and was placed under judicial management on 21 May 2003. The impairment loss of fixed assets of S$1.2 million was mainly due to the provision for impairment loss on the leasehold land of one of the Group's subsidiaries of S$1.3 million resulting from the property downturn which has depressed properties value. The Company has also made additional provision for contingent liabilities of S$2 million mainly due to the provision for crystallization of corporate guarantees issued for facilities given to it subsidiaries, mainly Tri-Mix Pte Ltd of S$1.0 million and provision for interest incidental to the Company's contingent liabilities of S$0.7 million. The decrease in the fixed assets was mainly due to the following: S$'000 (i) Disposals 2,977 (ii) Disposal of subsidiaries 2,726 (iii) Depreciation 1,528 (iv) Provision for impairment in value 1,278 (v) Devaluation of a leasehold property 1,203 The increase in other payables and accrued expenses was mainly due to an amount of S$5,563,000 due to Seatown Foundation Engineering Pte Ltd (SFEPL) by Seatown Corporation Ltd. In previous year, this amount was eliminated from the Group's accounts upon consolidation in accordance with the Singapore Accounting Standard as SFEPL was part of the Group in the previous year. Question: 1(c) Please provide a statement of changes in equity for the issuer as required in paragraph 1(d) of Appendix 7.2 of the Listing Manual. Response: STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2003 The Company Issued Share Capital Accumulated Total Total capital premium reserve losses reserves S$000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance at Sep. 30, 2001 57,758 25,879 - (27,607) (1,728) 56,030 Reserve - - (6,639) - (6,639) (6,639) arising from restructuring exercise Net Loss for - - - (71,957) (71,957) (71,957) the year Balance at 57,758 25,879 (6,639) (99,564) (80,324) (22,566) Sep. 30, 2002 Net loss for - - - (5,562) (5,562) (5,562) the year Balance at 57,758 25,879 (6,639) (105,126) (85,886) (28,128) Sep. 30, 2003 Question: 1(d) Kindly provide the reasons for the delay in finalization of SCPL's financial statements and state when the accounts will be available and whether the consolidated financial statements of the Group (including SCPL's accounts) are expected to be materially different. The Company should announce via MASNET as soon as practicable, the consolidated accounts of the Group (inclusive of SCPL's full year results). Response: SCPL is in Judicial Management. Mr. Goh Ngiap Suan is the appointed judicial manager of SCPL. Whilst SCPL remains a subsidiary of the Company, it is now under the independent management of Mr. Goh Ngiap Suan. As a result, the Company has no control over the management of SCPL. The Company has however asked the judicial manager of SCPL for the reasons why SCPL's financial statements could not be made available to the Company. The judicial manager of SCPL has informed the Company that the delay in finalizing SCPL's financial statements was mainly due to resignations of most of its employees, including all its accounting staff. The judicial manager of SCPL has also informed the Company that the financial statements of SCPL for the year ended 30 September 2003 will be made available to the Company by 31 March 2004. A further announcement may be made by the Company thereafter as to any material differences in the consolidated financial statements of the Group. Question: 1(e) The SGX also noted that the future of the Group would depend on the successful implementation of the conditional Investment Agreement. As the Company and Hui Yuan Investment Limited have agreed to extend the implementation of the agreement several times, kindly provide the status or progress of the implementation of the said Investment Agreement and the reasons for the delay in the implementation of the agreement (to state each outstanding issue). Response: As per the announcement via Masnet on 3 March 2004, the without prejudice extension of the Investment Agreement between the Company and Hui Yuan Investment Limited expired on 26 February 2004. The Company and Hui Yuan Investment Limited are currently in discussion on this matter. Accordingly, a further announcement will be made at the appropriate time in relation to the outcome of these discussions, and any other relevant matters. SINGAMIP ENTERPRISE: Creditors First Meeting Set March 26 --------------------------------------------------------- The first meeting of creditors of Singamip Enterprise Pte Ltd (In Judicial Management) will be held at 10 Collyer Quay, 6th Floor Ocean Building (Turquand Room), Singapore 049315, on the 26th day of March 2004, at 10:30 in the morning. SESHADRI RAJAGOPALAN Judicial Manager. Address of Judicial Manager: c/o Ernst & Young 10 Collyer Quay #23-05 Ocean Building Singapore 049315. The Singapore Government Gazette announcement is dated March 5, 2004. =============== T H A I L A N D =============== AHOLD: Divests Thai Operation & Withdraws from Asia Completely -------------------------------------------------------------- Ahold reached an agreement on the sale of its stake in CRC.Ahold, operating in Thailand, to its partner, the Central Group. The divestment, which is effective immediately, is the final step in the overall sale of Ahold's Asian operations. The transaction sum was not disclosed. Currently, CRC.Ahold Co. Ltd. operates 47 stores and has a wholesale business delivering to some 300 convenience stores in Thailand with unaudited aggregate 2003 sales of approximately EUR 312 million. Ahold employs about 6,000 people in Thailand. The Central Group is one of Thailand's largest private corporations. Central Group consists of six main divisions: retail, hotels, property, wholesale, manufacturing and food franchises. "Ahold has finalized its withdrawal from Asia with the divestment of its Thai operation," said Theo de Raad, Ahold Corporate Executive Board member responsible for Latin America and Asia, commenting on the agreement. "We have every confidence that all our stakeholders, including customers, associates and suppliers, will continue to flourish under new ownership." The divestment of Ahold's activities in Asia is part of Ahold's strategy to optimize its portfolio and to strengthen its financial position by reducing debt. In 2003, Ahold already completed the sale of its Indonesian and Malaysian operations. As previously reported, Fitch Ratings, the international rating agency, assigned Netherlands-based food retailer Koninklijke Ahold NV a Stable Rating Outlook while removing it from Rating Watch Negative. At the same time, the agency has affirmed Ahold's Senior Unsecured rating at 'BB-' and its Short-term rating at 'B'. The Stable Outlook reflects the benefits from the shareholder approval, granted on Wednesday, for a fully underwritten EUR3billion rights issue. Ahold however continues to face financial and operational difficulties, which have been reflected in the Q303 results. Ahold announced in early November its strategy for reducing debt through its EUR3bn rights issue and EUR2.5bn of asset disposals as well as improving the trading performance of its core retail and foodservice businesses. Whilst the approved rights issue addresses immediate liquidity concerns, operationally, the news is less positive with Ahold's core Dutch and US retail operations both suffering from increased competition, mainly from discounters, resulting in operating profit margin erosion. Ahold's European flagship operation, the Albert Heijn supermarket chain in the Netherlands, recently reported both declining sales and profits, as consumers turn to discount retailers. In reaction to this, Albert Heijn, has amended its pricing structure, which in turn would suggest that it will be more challenging in the future to match historic operating margin levels. (TROUBLED COMPANY REPORTER, Vol. 8, Issue No. 45, March 4, 2004) RAIMON LAND: Acquires Prime Beachfront Condominium Project ---------------------------------------------------------- Raimon Land Chief Executive Nigel J. Cornick announced on Wednesday that the company had signed a Sale and Purchase Agreement to acquire a partly completed condominium on Beach Road, Pattaya for Baht 260,000.000. The project, situated on the corner of beach Road and Pattaya Soi 5 is located on an 895 sq. wah land site and is composed of two connected partly completed towers of 22 and 27 stories. It is Raimon Land's intention to complete the project as a Grade a condominium that it plans to launch during the third quarter of 2004. Commenting on this recent acquisition, Mr. Cornick stated, "We are confident that the acquisition of this project will prove to be another excellent Raimon Land investment. The location, size and nature of the development is very similar to Raimon Lands, The Lakes condominium in Bangkok, not only is this a prime location in the heart of the Pattaya CBD but the views across Pattaya Bay, Jomtien and surrounding areas are superb from all floors". Mr. Cornick went on to add "We will be reviewing the original design and mix of the condominium layouts to ensure they meet the same exacting standards that we are achieving with our Bangkok Projects namely: "The Lakes", sold out in 5 days. "The Lofts Sathorn" now completed "The Legend" condominium recently launched and the "The Lofts Yennakart" designed by award Architect Kerry Hill from Singapore. Raimon Land is a property development company specializing in the residential sector of the Thai real estate market. SINO THAI: Expects BHT50B Sales This Year ----------------------------------------- Sino-Thai Engineering and Construction PLC, (Stecon) expects to double its sales to ten billion baht and net profit to one billion baht this year. The construction company aims to win at least a 2.5 percent share of the government's low-risk infrastructure projects totaling 900 billion baht, Bangkok Post reported on Friday. About 85 percent of the projects the company has its eyes on this year will, come from government bids, expected to be worth 36 billion baht, said president Anutin Charnvirakul. The 36-billion-baht primary bidding plan for the company's fiscal year 2004 consists of infrastructure projects for the Bangkok Metropolitan Administration worth 16.5 billion baht, along with projects for the Transport Ministry worth 7.5 billion baht and those for the Agriculture Ministry worth three billion baht. Others are building projects totaling 4.4 billion baht, power projects worth 3.5 billion baht, and industrial and environmental projects worth 1.1 billion baht, said Mr. Anutin. "The only risk affecting our target sales will be price risings of raw materials. Prices of cement and steel bars, which account for at least 20 percent of our costs, have almost doubled since October 2003 because of large orders from China," he said. But for state projects, the government will compensate any increases in main materials costs in excess of 4 percent, said Mr Anutin. He added that the local construction market this year would continue to grow, spurred by many government projects like subways, road construction and bridges crossing the Chao Phraya River. Stecon also planned to sell its 35 percent stake in DKK Sino Thai Engineering (DKK), an installer of telecommunications systems, for 250 million baht, Mr Anutin said. "Though we have invested 1.25 million baht in DKK since 1985, the 250-million-baht sale price represents its prospects over the next five years," he said. Last year, the company made a net profit of 600 million baht on operating revenue of 5.3 billion baht, which rose by 30% from the previous year. A dividend of 30 satang per share will also be paid for the first time since 1997. The company now has debts totaling 500 million in the form of bonds issued last September, with a coupon rate of 4 percent. The bonds will expire in the next five years. Its debt-to-equity ratio thus stood at 0.90:1, said Mr. Anutin. Stecon shares closed yesterday at 18.10 baht, up 0.30 baht, in trade worth 120.23 million baht. THAI MILITARY: Three-Bank Merger to Create 5th Largest Bank ----------------------------------------------------------- Thai Military Banks' final agreements of a three-bank merger with DBS Thai Danu and the Industrial Finance Corporation of Thailand (IFCT) could be signed on Monday, according to Finance Minister Suchart Jaovisidha, Bangkok Post reports. The three banks' Boards met on Thursday to finalize the swap ratio for the merger. Sources said the final ration would be 1.2 DBS Thai Danu shares for one Thai Military Bank share. For Industrial Finance, 0.8 to 0.9 shares would be swapped for each Thai Military share. Sommai Phasee, deputy permanent secretary for Finance and chairman of TMB and IFCT, said the share swap ratios would be announced on Monday. The next step would be to assess assets for both DBS Thai Danu and IFCT to determine the number of Thai Military shares to be exchanged. "The market price isn't the only factor involved, but just one of many to be used in the evaluation," Mr. Sommai said. In addition, a formal proposal to amend the IFCT Act to allow the merger to move forward would also be submitted to Parliament on Wednesday. Ratchanok Dandamrongrak, an analyst with National Securities, said under the swap ratios being discussed in the market, Thai Military would gain the most benefit. Overall, Thai Military Bank's capital would rise to 13.34 billion shares from 10.4 billion, a 22% dilution. Under the current ratios, 1.3 billion new shares would be issued for DBS Thai Danu shareholders and 1.6 billion for Industrial Finance shareholders. The merger, announced in January, will create the country's fifth largest bank, with assets totaling nearly 800 billion baht. Shares of all three banks on the Stock Exchange of Thailand were suspended from trade, Thursday pending clarifications. Mr. Suchart said he would chair a signing ceremony on Monday between the three banks. ********* 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., Frederick, Maryland USA. Lyndsey Resnick, Ma. Cristina Pernites-Lao, Faith Marie Bacatan, Editors. Copyright 2004. 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 prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. 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