The Indonesian government has approved in principle the purchase of Batavia Air by Malaysian low cost airline company, AirAsia Bhd and its Indonesian partner, PT Fersindo Nusaperkasa.

Indonesia's Air Transportation Director General, Harry Bakti said following the approval, AirAsia will be able to realise its purchase of 76.95% share of Batavia Air initially and follow up with the purchase of another 23.05% equity in the second phase. Meanwhile, Dharmadi, the President Director of Fersindo, the majority shareholder of PT Indonesia AirAsia, said with the approval from the Transportation Ministry, the company will be taking the steps to finalise the acquisition. With the purchase, AirAsia will hold 49% equity in Batavia Air, while Fersindo will be the majority shareholder with 51% share. ' Bernama

Highway concessionaire Lingkaran Trans Kota Holdings Bhd (Litrak) will receive over RM80mil in compensation from the government for postponing toll hikes. Chief financial officer Richard Lim Kim Ong said the company had received half of the cash payout in the middle of this year and the balance will come in the following year after an audit of the traffic has been conducted.

According to Litrak's concession agreement, the toll rates for Lebuhraya Damansara Puchong (LDP) were scheduled for a rise on January 1 2011, but the government had decided to defer until further notice.  Lim said the cash payout from the federal government will help ease the company's top line as traffic along the LDP has been almost saturated.

Meanwhile, Litrak chief executive officer Sazali Saidi said he is unaware of any Gamuda Bhd's plans, the company's major shareholder, to divest stake in the highway operator. Sazali also refuted claims that the management of Litrak and PLUS Expressways Bhd are now in talks on a potential buyout offer for Sprint.   ' Business Times

Ahmad Zaki Resources Bhd, a construction company, has won a RM174.6mil project from Mass Rapid Transit Corp Bhd for the construction and completion of elevated stations and other associated works at Taman Suntex, Taman Cuepacs and Bandar Tun Hussein Onn. 

The date for the practical completion for the works shall be on June 30, 2016, while the date for line completion for the entire works will be on July 31, 2017.  ' Business Times 

Source: AmeSecurities