Renong forced to attempt share swap

Renong hopes to swap its Commerce Asset shares for bonds issued by an associate. Earlier plans to sell the shares were shelved owing to weak demand.

Renong chairman Halim Saad's proposal to swap the company's 12.3% stake in Commerce Asset-Holding CAH to redeem some of the M$8.4 billion zero-coupon bonds issued by its Projek Leburhraya Utara-Selatan PLUS toll-road unit is not a bad plan. CAH, which controls Bumiputra-Commerce Bank, Malaysia's second biggest banking group, is in good shape fundamentally but there exists a lack of demand for its shares.

More precisely, there is a lack of domestic demand and foreign ownership is already approaching the 30% ceiling allowed by the Malaysian government. In addition, New Straits Times Press is looking to offload its 13.0% interest in CAH. Hopes a strategic investor could be found for...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222