BUSINESS IN ASIA TODAY - NOV 26, 2009

Business in Asia on Nov 26, 2009. A summary prepared by Asia Pulse ,the real-time, Asia-based wire with exclusive news, market intelligence and business opportunities:

TURKEY'S DOGAN SAYS AXEL SPRINGER DEAL NOT CANCELLED

ISTANBUL - Turkish conglomerate Dogan Holding said Wednesday its deal to sell 29 per cent shares in Dogan Yayin Holding to German media giant Axel Springer Verlag was not cancelled. Dogan's statement came after the Istanbul bourse temporarily suspended trading in shares of Dogan units pending a statement following recent media reports claiming that Springer had cancelled the deal. Dogan said Axel had not made any notification regarding a cancellation nor made contact on the matter.

AUSTRALIA'S CSR SELLS SHORTFALL OF NEW SHARES AT SMALL DISCOUNT

SYDNEY - Australia's CSR Ltd (ASX:CSR) says it sold off a shortfall of new shares in its A$375 million (US$349.46 million) capital raising at a 2.5 per cent discount to the last traded price of its stocks. The construction materials and sugar company simultaneously offered retail and institutional investors seven new ordinary shares for every existing 40 in an entitlement offer launched in October. A shortfall of 47.5 million new shares were sold in a bookbuild, CSR said today.

CHINA'S WUHAN IRON TAKES 13% STAKE IN AUSTRALIA'S CENTREX METALS

MELBOURNE - A Chinese state-owned company has formally taken a 13.04 per cent stake in South Australian iron ore developer Centrex Metals Ltd (ASX:CXM). Australian regulators gave Wuhan Iron & Steel (Group) Co (WISCO) (SSE:600005), China's third largest steel group, the green light earlier this month to take the stake in Centrex. WISCO paid $9.7 million for a 15 per cent stake, after about 40.4 million Centrex shares were placed with the Chinese company at the heavily discounted price of 25 cents per share. The stake in Centrex reduced to 13.04 per cent post-issue, so the placement did not require shareholder approval, as it fell below the 15 per cent threshold applying to foreign acquisitions.

CAMBODIAN PM'S DAUGHTER TO TAKE OVER AIR TRAFFIC CONTROL CO

BANGKOK - Cambodian Prime Minister Hun Sen's daughter plans to hold shares in Thai-owned Cambodia Traffic Air Services (CATS) after the Cambodian government temporarily took over management of the firm, according to Dr Panitan Wattanayakorn, deputy secretary-general to the Thai prime minister. Dr Panitan, also acting government spokesman, confirmed the news report that Cambodian leader's daughter is planning to hold shares in CATS. The plan followed confirmation by the Cambodian government of its temporarily assuming control of the management of the country's air traffic control company following the arrest of CATS employee Siwarak Chutipong on charges of espionage. Tekreth Samrach, a deputy minister of Cambodia's Council of Ministers, said in Phnom Penh Friday that his government acted against CATS for the sake of national security and for flight safety.

CENTRAL BANK OF MALAYSIA ACT 2009 COMES INTO FORCE

KUALA LUMPUR - The Central Bank of Malaysia Act 2009 came into force Wednesday, providing greater clarity on Bank Negara Malaysia's (Central Bank of Malaysia) mandate and the necessary powers and instruments to achieve it. In a statement, Bank Negara Malaysia said with the new development, the old Central Bank of Malaysia Act 1958 is repealed and thus, ceased to apply. It added that the new Act will enable it to more effectively manage emerging risks and challenges in performing its role and responsibilities as the nation's central bank. Incorporated in the Act is a more robust governance framework that provides for a high degree of accountability and transparency, the bank said.

INSURER TOWER AUSTRALIA BOOKS 32 PCT DROP IN FULL YEAR PROFIT

SYDNEY - Tower Australia Ltd's (ASX:TAL) full year profit declined by 32 per cent as the life insurer's investments were hit by volatile markets and a higher amortisations charge. Net profit fell to A$46.4 million for the 12 months to September 30, Sydney-based Tower said in a statement today. Australia's biggest specialist life insurer said underlying profit gained 10 per cent to A$74.5 million, from A$67.9 million a year earlier, as it won some significant contracts with AustralianSuper and IBM. Tower focuses on underlying profit because it removes short-term unrealised gains and losses that have to be booked on the bottom line under Australian accounting standards.

CHINA'S GEELY TARGETS 400,000 AUTOMOBILE SALES IN 2010

BEIJING - Chinese carmaker Geely Automobile Holdings (SEHK:0175) has raised its 2010 auto sales target to 400,000 vehicles, 30 per cent more than this year's, said Liu Jinliang, vice president of Geely. Liu said that the Geely is expected to realize a sales volume of 300,000 units this year. According to Liu, Geely will adopt innovative marketing to acquire a larger market share. In October, Geely was confirmed as the preferred bidder for the sale of the Volvo Car Corporation.

FINANCIAL UNITS LIMIT SLIDE IN JAPAN POST'S INTERIM NET PROFIT TO 9.7%

TOKYO - Japan Post Holdings Co.'s consolidated net profit fell 9.7 per cent on the year to 200.9 billion yen (US$2.3 billion) for the April-September half, with the banking unit accounting for 79 per cent of the overall gains. Japan Post Bank logged a parent-only net profit of 158.1 billion yen, up 5.3 per cent on the year. Valuation losses on asset holdings declined thanks to the recovery in stock prices, and investment returns also improved. This unit's net profit eclipsed the 140.9 billion yen of the largest private-sector bank, Mitsubishi UFJ Financial Group Inc. (TSE:8306). The entire group's pretax profit surged 19.5 per cent to 505 billion yen. But net profit declined partly because the parcel delivery joint venture between mail unit Japan Post Service Co. and Nippon Express Co. (TSE:9062) posted a loss of about 24 billion yen. For the full fiscal year through March 2010, Japan Post upgraded its net profit forecast to 430 billion yen.

VIETNAM OIL REFINERY PRODUCES NEARLY 1 MLN TONNES OF PRODUCTS

HANOI - Vietnam's first oil refinery has turned out 803,387 tonnes of products since it started trial operation in August, according to the Vietnam National Oil and Gas Group (PetroVietnam). The refinery had to temporarily shut down on August 18 as a broken valve was discovered in the residue fluid continuous cracking apparatus (RFCC), which makes gasoline and other products. It resumed operation on October 1, 2009. The plant is scheduled to finish its test-run in November 2009 and be transferred to its investor no later than early January 2010.