Jerneh: Its major shareholder. Kuok Brothers Sdn Bhd, has launched a conditional takeover of the former in a move that could provide a quicker way to wind up matters. Kuok Brothers is offering rm1.45 per cash per share for all remaining Jerneh Asia shares it does not own and for all new Jerneh Asia shares which may be issued arising from the exercise of the outstanding warrants. They are also looking to acquire the remaining 2.96 million warrants for 45 sen per apiece.

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Tenaga: Industry observers say the worst is over for Tenaga as a higher gas allocation in Fy2012 will boost its earnings. But this is offset by the lack of a complete fuel cost pass through mechanism, which means that the power utility firm has to absorb coal coasts above the US$85 per tone and is susceptible to gas supply shocks.

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Earnings will rebound in fy2012 as Tenaga's gas allocation will improve, resulting in lower oil and distillate use. TNB indicated that it expects to receive an average natural gas allocation of 1100-1150 mmmscfd in FY2012 because of additional gas from the Bedok-C natural gas field and less maintenance work by Petronas.

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Its CEO said the government has accepted a proposal to raise the coal pass through price from US$85 per tone to US$105-US$110 per tone. The company indicated that'' it will raise overall electricity tariffs by 4% and the company's annual revenue by rm1.4 billion. However, it is unclear when this will be implemented.

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Instead of changing tariffs on an ad hoc basis, a complete cost pass through mechanism for all furls is necessary to reduce earnings volatility and enhance TNB's appeal to the market. Currently, only the cost of the gas is completely passed through to consumers. TNB is currently procuring its coal requirements for FY2012 estimating coal price of US$110 per tone in FY2012. The construction of PEtronas Gas Bhd's regasification terminal in Malacca is on track. TNB is also proposed a proposal to the government for PEtronas to compensate TNB for the additional cost of generating electricity arising from the shortage of gas for FY2011.Some IPPs are working on a proposal to compensate TNB for the gas shortage.