In today’s edition of Evening 5 — Capital A seeks a US$1 billion Nasdaq listing for its brand management unit via a deal with Aetherium Acquisition Corp. Meanwhile, all state governments agree that it is time to increase water tariffs for domestic users.
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00:00 [Music]
00:04 Capital A is seeking to float its AirAsia brand royalty business and aircraft leasing unit in the US
00:11 by injecting these operations into a NASDAQ-listed special purpose acquisition company or SPAC.
00:17 It is aiming for an indicative valuation of US$1 billion or RM4.77 billion.
00:24 In a statement, Capital A said it inked a letter of intent with the SPAC,
00:28 Ethereum Acquisition Corp., for a proposed merger between the latter and an upcoming
00:32 Cayman Islands entity known as Capital A International to be set up by the low-cost
00:38 carrier operator. This unit will be an investment and strategic development company that leverages
00:44 the AirAsia brand and capitalizes on core capabilities in aviation, travel and hospitality
00:50 and digital technologies. It will acquire brand manager brand AA and fleet consolidated from
00:56 Capital A, enabling the new company to generate revenue from brand royalty and the leasing of
01:02 aircraft. The proposed business combination will form part of Capital A's proposed plan
01:07 to regularize its financial position. The group said a detailed announcement will be made upon
01:12 the signing of a definitive agreement. Capital A's shares closed unchanged at 82.5 cents,
01:19 valuing it at RM3.48 billion.
01:22 The three-member federal court bench dismissed an application by the Malaysia Competition's
01:31 Commission on ICC to review an Apex Court decision regarding the RM10 million fine
01:37 it imposed on carriers AirAsia and Malaysia Airlines Systems over their market sharing
01:42 agreement in 2012. The NT Competition watchdog was seeking a review of a decision last February
01:49 by the federal court to reject its appeal to reimpose the fine which had been levied in 2014.
01:55 Tan Sri Abang Iskandar Abang Hashim, who led the bench, said today that the decision was unanimous
02:00 as it ruled MyCC has not passed the threshold under Rule 137 of the federal court rules,
02:07 which provides the Apex Court the power to set aside its own ruling to prevent injustice or
02:12 abuse of the court process. Abang Iskandar said there is no shred of evidence to show
02:17 that the previous decision was tainted with denial of justice on MyCC
02:22 and ordered the agency to pay costs of RM60,000.
02:25 Natural Resources, Environment and Climate Change Minister Nick Nazmi said
02:35 all state governments agree that it is necessary to raise water tariffs for domestic users,
02:41 especially since some states have not seen an increase in the past 40 years.
02:46 The previous government had last June agreed to adjust water tariffs for non-domestic and
02:51 special categories in Peninsular Malaysia and Labuan, with an average increase of 25 cent per
02:57 cubic metre. But as Nick Nazmi pointed out, many states lack industrial or commercial sectors.
03:03 Speaking at the Dewan Rakyat today, he said his ministry is developing a mechanism
03:08 that will allow state water operators to adjust tariffs without having to seek ministerial
03:13 approval, though not at the expense of consumers in the bottom 40% and middle 40% income groups.
03:20 He said a proposal will be submitted to the Cabinet regarding this.
03:23 According to the minister, the government also intends to review the 1962 water agreement with
03:29 Singapore, citing certain issues with aspects of the deal and the need to find the best solution.
03:35 He did not elaborate on the specific problems alluded to.
03:39 [Music]
03:44 Independent power producer YTL Power International has become a substantial
03:49 shareholder of Randhill Utilities after acquiring 243.33 million shares,
03:55 equivalent to an 18.87% stake in its rival.
03:58 In a burst filing, YTL Power said the transaction was made today.
04:03 In a note, MITF Research said it understands the 18.87% block was acquired from Shevell
04:09 Infrastructure Fund, which in turn is expected to cease to be a shareholder of Randhill.
04:14 The research firm said its quick channel checks suggest this is a strategic investment decision
04:20 for YTL Power as it sees good assets within the Randhill Group, such as its exclusive rights to
04:26 Johor water supply and Sabah Power sector exposure. Since YTL Power's stake is still below the 20%
04:33 threshold, MITF said it sees no impact on the company's earnings at this point.
04:38 It reaffirmed its buy calls on Randhill with a target price of 80 cent and YTL Power with a
04:44 target price of RM2.45. At the close, Randhill's shares jumped by some 27% to 73.5 cent, while YTL
04:53 Power's shares rose 3% to end the day at RM2.18.
04:56 The Sessions Court awarded some RM700,000 to a businessman who filed a suit against
05:07 cryptocurrency platform Luno Malaysia for not safeguarding the cryptocurrency kept in his
05:13 account. In the suit, Yu Sita claimed he had lost some RM600,000 in cryptocurrencies after his Luno
05:20 account was hacked into and held the platform responsible for failing to safeguard his holdings.
05:26 In the first decision of its kind against a cryptocurrency platform in Malaysia,
05:30 Petaling Jaya Sessions Court Judge Sazli Nasafi said Yu had proven his claim based on the balance
05:36 of probabilities. The court held Luno to be negligent and awarded Yu the sum he lost,
05:42 together with an extra RM100,000 as punitive damages. The court also ordered costs and
05:48 interests on the judgment sum to be paid by the cryptocurrency exchange to Yu.