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Business in Asia Today

Real estate brokers make beeline for S.Korea
HONG KONG - Real estate consultants are rushing to South Korea in view of its sharp economic recovery. Cushman and Wakefield Worldwide will set up a branch in Korea in September after brokering the sale of the Koryo Building in Seoul for $85 million to Hewlett-Packard. Britain's Jones Lang LaSalle will set up a branch in Seoul this year. Colliers Jardine and ABR have set up shop in Korea and CB Richard Ellis has signed an agreement with Samsung Everland to manage its assets. Brooks International and Vigers are also active in the Korean real estate market.

Foreign discount stores expand in S.Korea
SEOUL - Foreign discount stores in South Korea plan to open more outlets in the second half of this year. Carrefour of France opened its ninth local outlet Tuesday on a floor space of 10,560 square metres in Inchon and will open two more outlets each with a floor space of 9,900 square metres in the southern region by the end of the year. Wal-Mart of the U.S. will open a 9,240 square meter outlet Thursday in Seoul, while French distributor Promedes is to open a 9,900-square meter store in Pusan next month and two more in Seoul by June 2000. The expansion is seen as pre-emptive action to lure more customers than Korean competitors amid the economic recovery.

Nippon Mitsubishi Oil announces takeover bid for Koa Oil
TOKYO - Japan's biggest petroleum distributor, Nippon Mitsubishi Oil Corp (TSE:5001), has announced a takeover bid for major oil refiner Koa Oil Co (TSE:5006), 50 percent owned by U.S. oil major Caltex Petroleum Corp. Looking to strengthen its refining operations, Nippon Mitsubishi plans to buy all 72.6 million of Caltex's Koa shares for 26.1 billion yen. Caltex intends to comply with the Japanese firm's request to purchase the shares. Koa has recently been hit by depressed oil prices.

Sumitomo sues Credit Lyonnais Rouse for trade losses
TOKYO - Sumitomo Corp. has filed a suit in the UK against Credit Lyonnais Rouse seeking about $308 million in damages related to illegal copper trading by a former Sumitomo employee. Sumitomo claims the British metals trader knowingly cooperated with Yasuo Hamanaka, then head of Sumitomo's non-ferrous metals department, on fraudulent copper deals between June and September 1993. Hamanaka is serving an eight-year prison sentence for forgery and fraud.

Moody's affirms C&W debt ratings
LONDON - Moody's Investors Service on Wednesday confirmed the debt ratings of Cable & Wireless Plc. (C&W). The confirmation follows the announcement of the restructuring of Cable & Wireless Communications Plc. into two companies, the acquisition by C&W of 100 percent of the data business and the sale of the consumer business to NTL. As a result of the transaction, C&W will temporarily reduce its financial debt by GBP3.4 billion, thus providing it with additional financial flexibility to support its ambitious future investment program.

Australia's Highlands sees PNG mine project finalized
BRISBANE - A mining development contract with the Papua New Guinea government for the Ramu nickel/copper project is due to be finalized some time in the September quarter, Highlands Pacific Ltd. said. Highlands holds 65 percent stake in the A$1.33 billion (U.S.$860 million) project and and Nord Pacific Ltd. holds the rest. A feasibility study last year confirmed the project had potential as a long-life mine producing 33,000 tons a year of nickel and 3,200 tons of cobalt.

Portuguese corks for Australian wine
MELBOURNE - A Portuguese firm, the Amorium Group, which last year acquired local company, Cork & Seals, has opened a cork making plant as part of a A$7.5 million (U.S.$4.82 million) investment. The plant, which will produce 70 million wine corks in its first year, for local use and export, is eventually expected to produce 210 million corks a year. They will be biodegradable and recyclable. Cork & Seals managing director, Noel Heyes, said the technology was "the very latest available in the world." Australia imports up to 400 million corks a year, mainly from Portugal.

Australian Internet advertiser expands in Singapore, HK
SINGAPORE - In a reflection of the explosion of new media use in Asia, Australia's largest Internet advertising firm, BMCMedia.com, has announced the opening of offices in Singapore and Hong Kong this month. The company intends to use the offices as a springboard to the region's online community, which currently stands at more than 40 million users and is growing at compound rate of 40 percent per year.

Vietnam, U.S. firms sign 30-year oil, gas contract
HANOI - A 30-year production sharing contract has been signed in Hanoi between the Vietnam Oil and Gas Corporation (PetroVietnam) and the U.S.-based Vietnam American Exploration Co. Inc. (VAMEX). The contract enshrines details of the exploration and sharing of oil and gas in offshore blocks 07 and 08 in the East Sea's southeastern area. VAMEX, a branch of American Sterling Projects Inc., was established in 1998 to join PetroVietnam in oil exploration in the contracted area.

Deal to sell stake in Malaysia's Proton almost complete
KUALA LUMPUR - Negotiations between Petronas and DRB-Hicom to acquire DRB-Hicom's 27.2 percent stake in Perusahaan Otomobil Nasional Bhd (Proton) may be finalized soon. DRB-Hicom chairman Mohd Saleh Sulong said talks with Petronas were being pursued and agreement on certain aspects of the deal had been reached. Negotiations between the firms began last October and observers say pricing could be the major factor that has caused the delay. DRB-Hicom will announce a restructure after the deal is concluded.

Indonesia hands over Bank Bali management to Stanchart
JAKARTA - Indonesian Bank Restructuring Agency (IBRA) says it has handed management of Bank Bali to Standard Chartered Bank (Stanchart) to ensure the foreign bank keeps its commitment to invest in Bank Bali. IBRA secretary Christovita Wiloto said Standchart was reluctant to go through with its investment plan as recapitalization needs rose to Rp4.3 trillion ($615 million) from Rp2.8 trillion in December 1998. After talks with Stanchart, IBRA allowed it to take over management of Bank Bali with IBRA as standby buyer in a rights issue. Stanchart can hold up to 20 percent of Bank Bali shares.

Indonesia's Antam to build ferronickel smelter
JAKARTA - State-run general mining firm PT Aneka Tambang (Antam) will start to build its third ferronickel smelter in Pomalaa in Sulawesi by the end of this year. The project, due to be complete in 28 months, will be carried out by Mitsui & Co. Ltd. of Japan which will conduct the engineering, procurement and construction of the facility, called FeNi III. Investment on the smelter will amount to Rp281.4 billion ($40.2 million). FeNi III is due to start operation by 2002 and will have an annual capacity of 13,000 tons.

PT&T will remain solvent
MANILA - The Philippine Telegraph and Telephone Corp., (PT&T) will remain solvent as its P1.7 billion capital stock is more than sufficient to cover the deficit of P574 million at the start of its fiscal year. In addition, PT&T said its total assets as of the first quarter of 1999 stood at P2.1 billion. PT&T attributed the improvement to the increase in its subscribers in its local exchange carrier business.

HK Business Association inaugurated in Vietnam
HANOI - The Hong Kong Business Association has held its inauguration ceremony, indicating Hong Kong's companies' greater commitment to do business in Vietnam. "It is extremely important to set up the Hong Kong Business Association in Vietnam during the start of economic recovery in the region," said the South East Asia director of Hong Kong Trade Development Council, Terence Lo, at the ceremony. "It will not just provide good networking opportunities and business information to association members, but also establish a formal communication channel with the Vietnamese government," he said. Meanwhile, Vice Chairman of the Ho Chi Minh City People's Committee, Nguyen Van Chi, praised the establishment of the association, saying it would help strengthen economic relations between Hong Kong and Vietnam. "Two way trade between Hong Kong and Vietnam was $892 million in 1997 and $737million last year," said Chi.

(Asia Pulse)

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