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Tag: deal

  • Vietjet to ink $13 billion Boeing deal during Trump-Kim summit

    Vietjet to ink $13 billion Boeing deal during Trump-Kim summit

    Vietnamese budget airline Vietjet will sign next week a deal to buy 100 narrow-body Boeing aircraft. The signing will take place on the sidelines of the upcoming Trump-Kim summit, sources said. The sources also said Vietjet will finalize next week a provisional deal agreed last year to buy 100 narrow-body Boeing 737 MAX jets worth almost $13 billion at list prices.

    The U.S. Federal Aviation Administration (FAA) last week gave Vietnam a Category 1 safety rating, allowing local airlines to operate direct flights to the U.S.

    Vietjet, along with other local airlines, had previously expressed interest in operating direct flights to the U.S.

    The carrier, the largest private airline in Vietnam, had also signed a deal to buy Boeing 737 MAX narrow-body jets when former U.S. President Barack Obama visited Hanoi in 2016.

    It also finalized a deal in November last year with Airbus for 50 A321neo jets during a visit to Hanoi by French Prime Minister Edouard Philippe.

    Vietjet currently operates 40 domestic routes and 66 international routes. It has 385 flights daily within Vietnam and to places such as Japan, Hong Kong, South Korea, Taiwan, Singapore, mainland China, Thailand, Myanmar and Malaysia.

  • New integrated resort in China by Fosun

    New integrated resort in China by Fosun

    Fosun bets on integrated resorts to address the needs of Chinese travelers, who are showing interest in these types of experiences. Fresh from its Hong Kong initial public offering last month, Fosun Tourism Group is making good on its intention to use the proceeds to develop two new integrated resorts in China, announcing properties under the Thomas Cook Group brands Casa Cook and Sunwing.

    The two projects are in Lijiang, Yunnan province, famous for its UNESCO World Heritage old town, and Taicang, Jiangsu province, 30 minutes from Shanghai.

    Fosun Tourism chairman and CEO Jim Qian told Skift he is seeing different segments emerging in China’s domestic travel market. While this is already the norm in mature western markets, it’s just starting in China, and there’s a need to offer local travelers a choice of hotel brands and a variety of experiences, said Qian.

    In so doing, Fosun is turning to what’s in the family, its own Club Med and its Thomas Cook China joint venture. The Lijiang Albion International Resort will also have a Club Med, which has “a different positioning” from the boutique, design-led Casa Cook, he said.

    The whole development in Lijiang is spread over at 350,000 square meters (382,765 square yards). It is located near the Baisha old town, which lies closest to the majestic Yulong Snow Mountain, and is the only land permitted for massive development.

    How it will be sensitive to the tranquil and preserved ancient surroundings remains to be seen. For now, its website says it aims to attract mid- to high-profile guests by offering the total package, including a Club Med snow-themed resort, a guesthouses town, riverside shows, heritage towns, outdoor activities, health and wellness.

    “We will deliver a lot,” said Qian. “I believe in the future when a family goes on a holiday, they don’t just want to stay in the room.

    “Nowadays in China, we have more resort hotels in destinations such as Sanya, but most are actually business hotel brands moving from the city to the beach. I don’t think that kind of hotel is suitable for a family holiday. We will introduce the real beach or holiday resort to a destination.”

    Not much is known of Fosun’s other resort project in Taicang except that it is smaller at 145,000 square meters (158,570 square yards).

    Both are expected to be completed in stages from late 2020.

    Fosun Tourism, whose slogan is Everyday is Foliday (short for Fosun holiday), having tested destination development and management with its fully owned Atlantis Sanya, is keen to bring the experience to bear on the projects.

    “We have the experience in the construction of resort destinations, and we know how to make foreign brands suitable for the Chinese market,” said Qian.

    Fosun Tourism also believes the timing is good. It pointed out the per capita tourism expenditure in China in 2017 was about $575, which was below the global average of $741. “This implies the great potential for the growth of China’s tourism market,” it said.

    Besides, it claimed to be in a stronger position now, announcing ahead of its annual results to be released in March that it expects a net profit of at least 350 million yuan ($52 million) in 2018, compared with a net loss of 295 million yuan ($44 million) in 2017.

  • Sime Darby Plantation, Salcra ink MoU to uplift Sarawak’s palm oil industry

    Sime Darby Plantation, Salcra ink MoU to uplift Sarawak’s palm oil industry

    Sime Darby Plantation Bhd (SDP) and Sarawak Land Consolidation and Rehabilitation Authority (Salcra) have signed a memorandum of understanding (MoU) to form a collaborative framework to establish, strengthen and encourage synergistic commercial cooperation along the palm oil value chain. The collaboration aims to uplift Sarawak’s palm oil industry standards in terms of operational efficiency and productivity through best agronomic practices, SDP said in a statement yesterday.

    It is also intended to inculcate and enhance sustainability awareness for higher operational performance and bottom-line achievement.

    Under the MOU, both parties intend to combine their resources and expertise to jointly collaborate, evaluate and research on matters relating to the palm value chain and related agronomic inputs.

    These include in the areas of agricultural materials such as oil palm seedlings and saplings, management, consultancy services and training, consultancy services, as well as laboratory analytical services.

    The MoU also includes any other activities that are mutually beneficial to the parties such as logistics and activities connected to rubber plantation and other agricultural businesses.

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  • Lotte’s Ministop deal falls through

    Lotte’s Ministop deal falls through

    The sale of convenience store chain Ministop fell apart as potential bidder Lotte and the Japan-based convenience franchise failed to agree on a price. The AEON Group of Japan, the largest shareholder of Ministop Korea, filed a notice on Monday that it has suspended the sale process to sell its full stake in the unit. The AEON Group owns a 76.06 percent share while Daesang Group, a Korean food conglomerate, has a 20 percent stake. Japan’s Mitsubishi holds 3.94 percent.

    Ministop Korea also notified its workers of the suspension, vowing to keep searching for a potential suitor.

    Executives from AEON and Ministop visited Seoul over the weekend to meet Shin Dong-bin, chairman of Lotte Group, which also owns 7-Eleven in Korea.

    The retail giant has been considered the likeliest buyer since it reportedly offered the highest price of around 400 billion won ($357.3 million).

    Other competitors include Shinsegae, which owns convenience store franchise Emart24, and Glenwood Private Equity, a local private equity firm.

    Ministop opened a bidding process back in November, but delayed selecting a preferred bidder.

    The introduction of a government regulation banning the opening of convenience stores within 80 meters (262 feet) of another store led to Ministop requesting a higher price, according to local media outlets.

    Ministop’s sale garnered attention from the beginning because it could impact the highly-competitive convenience store chain market in Korea.

    Ministop operates 2,500 stores across the country. If Lotte had succeeded in acquiring Ministop, it could have increased its number of stores from 9,500 to 12,000.

    CU runs the most stores, at 13,109, while the second player is GS25 with 13,018.

    Emart24 ranks fourth with 3,564 stores.

  • Facebook strikes deal with SK to pay data fees

    Facebook strikes deal with SK to pay data fees

    Facebook reportedly finally agreed to pay data traffic fees to SK Broadband after two years of negotiations. According to local media reports Sunday, the social media giant and internet provider agreed to a two-year network usage deal to set up a cache server for temporary data storage and provide fast Facebook access to SK Broadband users. While the two companies did not confirm the exact sum, Facebook will reportedly pay more than what it previously proposed during negotiations.

    SK Broadband is not the first internet provider that Facebook will be paying in the country. In 2015, it signed a contract with KT to open a cache server. The two companies are currently working on renewing the contract after it expired last July.

    The new deal with SK Broadband comes after Facebook faced negative press for inconveniencing users while trying to avoid paying network fees to SK Broadband and LG U+.

    In late 2016 and early 2017, the social media giant re-routed non-KT users to its server in Hong Kong when they tried to connect to the platform, slowing down access considerably. The Korea Communications Commission charged the company 396 million won ($353,900) in fines and ordered it to change its practices.

    Following the agreement with SK Broadband, the social media giant is expected to open up a cache server with the internet provider.

    The company is also reported to be working with LG U+ on a similar deal.

    The recent deal highlights the question of whether other foreign IT giants will follow suit and pay data traffic fees to Korea’s network providers.

    Many Korean businesses have complained that current laws and practices hurt domestic firms. Naver and Kakao, for example, pay around 70 billion won and 30 billion won every year to Korea’s three network providers to compensate for their high traffic volume, while Google and Netflix – which are thought to be responsible for half of Korea’s data traffic together with Facebook – pay none.

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  • Unison Capital could bag US$442 million for Gong Cha deal

    Unison Capital could bag US$442 million for Gong Cha deal

    South Korean private equity firm Unison Capital is selling its Gong Cha bubble tea franchise in a deal likely to fetch up to US$442 million. The company purchased the brand four years ago for KRW34 billion ($30 million), before taking over its global headquarters in Taiwan in a KRW40 billion ($35.45 million) deal in 2017. The brand’s HQ operates stores in 16 countries.

    The offer has attracted interest from major South Korean F&B players, considering the brand’s stable cash flows and EBITDA margin of 24–25 per cent, compared with Starbucks’ 21 per cent.

    The brand runs 448 outlets within South Korea, and derives 70 per cent of its sales from directly managed stores within Korea and Japan. The firm plans to expand its global store count from 900 to 1700 by 2021, expanding into 10 more countries during the period – with concrete plans to establish stores in the UK, Mexico, Thailand, Indonesia and Cambodia.

    Sales are forecast at KRW180 billion ($159.54 million) this year, compared to KRW134 billion ($118.77 million) last year.

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  • Sunway, Hoi Hup Realty wins land tender in Singapore

    Sunway, Hoi Hup Realty wins land tender in Singapore

    The Housing and Development Board of Singapore has awarded a parcel of land measuring 2.5ha to Sunway Bhd’s Singaporean unit Sunway Developments Pte Ltd (SDPL) and Hoi Hup Realty Pte Ltd after a successful bid.
    The land is slated for the SG$434.45 million (RM1.32 billion) Executive Condominium Housing Development. The group told the stock exchange that the land located at Tampines Avenue 10 (Lot 7545K MK 28), Tampines, Singapore was awarded to Hoi Hup and SDPL following a successful joint tender submitted by the parties.

    “The land will be acquired by a proposed new joint venture company to be incorporated, in which Hoi Hup or its nominee company(ies) and SDPL will have equity interest in the proportion of 65:35,” it noted.

    The 99-year lease term Executive Condominium Housing Development project is scheduled to go on for 60 months, commencing Jan 22.

    It is expected to contribute positively to the earnings of Sunway Group in the financial year 2023.

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  • Jeju Air inks $4.4 billion deal to purchase 40 new planes

    Jeju Air inks $4.4 billion deal to purchase 40 new planes

    Jeju Air, Korea’s biggest budget carrier by sales, said, on Tuesday, that it inked a $4.4 billion deal for 40 new planes, with the delivery set to begin in 2022. Jeju Air has decided to buy Boeing’s new B737 MAX passenger jets to strengthen its fleet, the company said in a statement.

    The low-cost carrier plans to assign the 189-seat B737 MAX on its mid and long-haul routes as they are more fuel efficient than the planes it currently operates, a company spokeswoman said over the phone.

    The new jets have a range of some 6,500 kilometers, 1,000 km more than the B737-800NG that the company currently operates.

    In the January-September period, net profit jumped 31 percent to 84.86 billion won ($75 million) from 64.61 billion won a year earlier. Operating profit climbed 14 percent to 95.82 billion won from 83.79 billion won during same period. Sales were up 28 percent to 941.93 billion won from 734.78 billion won.

    Jeju Air said it is on track to achieve sales of over 1 trillion won this year on the back of a strengthened fleet and profitable routes.

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  • Bank of Indonesia Signs $10b Financial Stability Deal With Singapore

    Bank of Indonesia Signs $10b Financial Stability Deal With Singapore

    The central banks of Indonesia and Singapore said last week that they had agreed to a bilateral deal for a $10 billion backstop to help maintain monetary and financial stability after a recent bout of turbulence in markets. The pact, which will be in place for one year, comprises a local currency swap agreement of around $7 billion equivalent and another $3 billion that allows for repurchase transactions between the two central banks to obtain United States dollar cash using government bonds of major countries as collateral.

    Bank Indonesia has been recently intervening to stabilize its rupiah, which fell to 20-year lows against the US dollar amid a global rout in emerging markets.

    “Economic fundamentals in the regional economies remain sound. But markets can sometimes overreact in the face of heightened uncertainty. This bilateral financial arrangement will instill confidence amongst investors,” said Ravi Menon, managing director of the Monetary Authority of Singapore.

  • Grab refuses to release details of Uber buy-out

    Grab refuses to release details of Uber buy-out

    The deal has left tax payments unresolved and questions remaining about a potential market monopoly. Tax authorities in Ho Chi Minh City have once again sent a request to Grab in Vietnam asking the company to provide details concerning its recent acquisition of rival Uber’s Southeast Asia business.

    The reason for the request is due to the fact that Grab is legally obliged to pay tax on the transfer of capital and business market share following the deal.

    Vietnam’s tax law states that all income generated by foreign companies operating in the country should be subject to tax, regardless of where they are based.

    Organizations and individuals that receive capital from foreign organizations are required to declare and pay tax on behalf of those foreign organization, tax authorities cited the law as saying.

    With details of the Uber- Grab deal remaining undisclosed, authorities are still unsure how to calculate how much the latter owes in tax.

    Uber also allegedly still owes Vietnam’s government $2.3 million in taxes required, but claims that according to Vietnam’s agreement on double taxation avoidance with the Netherlands, that figure is inflated.

    Grab has previously said that the $2.3 million is down to Uber, and has refused to pay the firm’s outstanding debt.

    Grab’s decision violates Vietnamese law and international practices, said lawyer Doan Van Hau, chairman of the Vietnam Lawyers’ Commercial Arbitration Center.

    Quoting Vietnamese law, Hau said that Grab was responsible for paying all of Uber’s back taxes.

    Ho Chi Minh’s tax department previously asked five local commercial banks to help it collect the outstanding sum from Uber, but failed to do so as the company did not have a bank account in Vietnam.

    Uber has since filed two lawsuits against Ho Chi Minh’s tax department.

    Grab is also under investigation by Vietnam’s Ministry of Industry and Trade for violating the Competition Law in its acquisition of Uber.

    Malaysia, the Philippines and Singapore are all requesting details of the acquisition.

  • SurfStitch creditors approve the EziBuy deal

    SurfStitch creditors approve the EziBuy deal

    SurfStitch creditors have approved a proposal from EziBuy to take over the embattled surfwear company and either relist or sell it in the next three years, bringing the online retailer’s drawn-out administration to a close on Wednesday.

    Nearly two-thirds of creditors voted in favour of the deed of company arrangement (DOCA) proposed by EziBuy’s parent company, Alceon Group, over a competing offer from SurfStitch non-executive director Abigail Cheadle, which had the support of SurfStitch co-founder Lex Pedersen and general manager Justin Hillberg, as well as several “major shareholders”, according to Cheadle, but not the administrators or other board members.

    Pedersen said the outcome reflected the emotions of the participants, rather than what was in the best interest of stakeholders.

    “Unfortunately I think the process and outcome was a little more emotional than financial. Personalities, long-standing conflicts and conveniences may have tangled the outcome that should have exclusively been what’s best for the true stakeholders, that is the shareholders and staff,” he told.

    The administrators in March recommended creditors approve the EziBuy DOCA, saying it offered a better return to all stakeholders. Cheadle last week sent a revised proposal to shareholders, matching many of the terms of the EziBuy offer and addressing some of the administrators’ concerns about the process of issuing shares.

    However, the administrators on Tuesday reiterated their support for the EziBuy deal and said creditors would need to issue a new appointment of proxy to vote for the second Cheadle DOCA.

    Cheadle lodged another enhanced proposal an hour before the meeting on Wednesday and moved to postpone the vote to allow creditors whose votes were deemed invalid to participate in the decision and enable an independent expert to assess the EziBuy offer.

    Under the EziBuy DOCA, ordinary creditors and employees will be paid in full within six to eight weeks and class action creditors will receive an initial cash dividend between $3.4 million to $4.3 million. Class action creditors and current shareholders will also be issued convertible notes, converting to shares in the newly merged company, which has an obligation to seek an IPO or other liquidity event within the next three years.

    Cheadle has questioned the valuation of the convertible note, since it implies a valuation well over ten times what Alceon paid for EziBuy ($10 million) last year. But creditors proved reluctant to adjourn the meeting after learning that EziBuy would rescind its offer if the vote was postponed.

    Voters were also keen to end the company’s voluntary administration, which has hampered SurfStitch since it has been on cash terms with suppliers since August.

    Cheadle expressed disappointment after the meeting and maintained that her proposal would have delivered a better outcome for everyone involved.

    “I am extremely disappointed the proposal for SurfStitch was not successful. Since August last year, the proposal has been basically the same. During that time I have worked on the offer on a full-time basis, as well as personally funding it, because I believed strongly in the company’s future,” she said.

    “I hope SurfStitch does well under its new ownership.”

    Pedersen said EziBuy will need to step up to revitalise the business, which he believes still has the potential to succeed.

    “I remain of the view that this business should never have been placed into voluntary administration. Alas, it is where it is today despite the process, so what happens from here is now of utmost importance.

    “EziBuy now need to step up with the support that Justin Hillberg and the team need and deserve as they push to restore it to pre-administration performance. The headwinds created by this protracted process are brisk, but the people [who] have built this business and the customers that support it are resilient.”

  • New Zealand optimistic of reviving TPP trade deal

    New Zealand optimistic of reviving TPP trade deal

    New Zealand will be trying to win over other members this weekend when TPP ministers get together in Hanoi on the sidelines of an APEC meeting.

    New Zealand is increasingly optimistic that the 11 remaining countries of the Trans-Pacific Partnership (TPP) will move ahead with the trade deal despite the withdrawal of the United States, Trade Minister Todd McClay said.

    Alongside Japan, New Zealand will be trying to win over other members this weekend when TPP ministers get together in Hanoi on the sidelines of an Asia-Pacific Economic Cooperation (APEC) meeting.

    “I don’t think we should expect any big decision from that ministerial meeting, but certainly I would hope for a very clear direction as far as the process is concerned,” McClay told.

    U.S. President Donald Trump dumped membership of the TPP as one of his first acts in an “America First” policy aiming at bringing manufacturing jobs back to the United States.

    McClay said he thought the original timetable for members to ratify TPP by next March still made sense. So far, only Japan and New Zealand have ratified the deal, but McClay said he believed others would follow.

    “I’ve been talking to many of them and visiting a lot of countries. They all have said at this stage they’re interested in the process and want to stick with it,” he said.

    Among the biggest challenges is keeping Vietnam and Malaysia on board. Their main benefit from TPP would have been greater access to U.S. markets. Without that, there is less impetus for them to make tough reforms on everything from freeing labour rights to strengthening intellectual property protection.

    McClay visited both countries recently.

    “It certainly feels like there is greater interest in moving forward today then there was a couple of months ago,” McClay said.

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  • Indonesia Signs Currency Swap Deal with Korea

    Indonesia Signs Currency Swap Deal with Korea

    Bank Indonesia (BI) and the Bank of Korea signed a bilateral currency swap arrangement (BCSA). Through the deal, both central banks will be able to swap currencies for a value of KRW 10.7 trillion or Rp115 trillion.

    The agreement was signed by BI governor Agus D.W. Martowardojo and Bank of Korea governor Lee Ju-Yeo, March 6. Agus said the BCSA extension will economic ties between the two nations through the use of their respective currencies.

    “The goal is to reduce our dependency on using a certain currency,” Agus said on Monday, March 6, 2017.

    According to Agus, the BCSA is part of the government’s initiative to deepen the financial market and support economic defense “especially in facing today’s economic uncertainties,” Agus said.

    The BCSA also guarantees the use of Indonesia and South Korea’s currencies in trading, to support the regional financial stability.

    Agus said the deal is valid for three years and can be extended if the two countries agree.

    The first BCSA between BI and Bank of Korea was signed on March 6, 2014, based on economic ties—especially in trade—between the two nations.

    South Korea is Indonesia’s fourth import destination with an average market share of 6.5 percent a year from 2010-2015. Korea is also Indonesia’s sixth export destination, with an annual market share of 6.8 percent in the same period.

    However, most transactions are denominated in US dollar. “That’s why we need to diversify the use of our own currency when trading with regional countries, to stabilize the rupiah,” Agus said.

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  • Airtel close to deal to buy Telenor India

    Airtel close to deal to buy Telenor India

    Bharti Airtel is reportedly in advanced negotiations to buy out Telenor’s Indian operations through a debt acquisition deal. Airtel is planning to take on debt of around 15 billion rupees ($219.6 million) from Telenor by way of payment for the purchase.

    Russian telecoms group Telenor is seeking to exit the Indian market through the deal. According to the source, third-ranked Idea baulked at a deal because the operator did not want to take on additional debt, and had offered equity instead. Telenor had also approached various other operators including Vodafone but had been unable to clinch an agreement.

    While Airtel is reluctant to increase its existing $12.23 billion debt burden, the operator was lured in  by Telenor’s 4G spectrum holdings in seven of India’s 22 telecoms circles.

    The acquisition won’t cover all Telenor’s Indian debts, and the company will have to cover the remainder, the report states.

    Telenor has been considering exiting the Indian market for some time. The operator’s efforts to establish a competitive foothold in the market were dealt a serious blow by the cancellation of its 2G licenses in 2012 as part of a supreme court decision revoking 122 licenses issued under a former telecoms minister’s regime. Telenor India never fully recovered from this setback despite purchasing new licenses in seven circles.

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  • Huawei goes solar in regional deal

    Huawei goes solar in regional deal

    Huawei’s solar business has received a boost with a deal to partner with Filipino renewables generator Citicore Power.

    The deal, announced in Shenzen on Wednesday and reported in the Filipino press, will see the two companies partner up to deliver solar projects not only in the Philippines, but in other Asian countries including Japan.

    “This comes on the heels of the company’s plans to develop and construct solar projects with a total capacity of 500 MW [megawatts] by 2020 in overseas markets particularly Japan, Malaysia, Indonesia, Thailand, Vietnam, and Myanmar,” Citicore Power said in a statement.

    Citicore said that under the partnership, Huawei “will provide project design support and inverter maintenance support,” including remote, hardware, and solution support.

    “It will also complete or obtain various product tests, network admission, and technology certification for the products. Huawei will also share its global recourses including solar investment partners, consultants, and EPC [engineering, procurement and construction] partners,” the company said.

    Citicore Power operates three large-scale solar farms in Bataan, Negros Occidental and Cebu provinces, with a combined capacity of more than 100 MW

    The company aims to install 1,000 MW of capacity using a range of renewable energy sources, including solar, biomass, wind and hydropower.

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