YTL looking at sizeable M&As, fresh assets

By Sharen Kaur
sharen@nstp.com.my
Published in NST on May 30, 2012

ACQUISITION TARGET: Group seeing some realistic opportunities coming into market and will consider those with 7-10pc yields

CONGLOMERATE YTL Corp Bhd, which has net cash of RM14 billion, is looking at sizeable mergers and acquisitions (M&As), as well as acquiring new assets to grow its businesses.

YTL group managing director Tan Sri Francis Yeoh sees some opportunities in the market today, amid the eurozone crisis.

"Those days, we were chasing for deals, but now, others are looking for us," he said.

"We are seeing some realistic assets coming into the market, especially in Australia. In China, a lot of mall operators are approaching us. There are other companies wanting to sell their assets, but it is not necessary that we will buy," he added.

He said YTL will consider assets that offer seven to 10 per cent yields.

Yeoh has said previously that if there was nothing attractive to buy, YTL might buy back its subsidiaries.

Speculation has been rife that YTL may consider buying its subsidiary, YTL Cement Bhd, if there are not many attractive M&A opportunities in the market.

At Invest Malaysia yesterday, Yeoh ruled out selling any assets under the group.

"We will never sell our assets, especially when they are all good assets like Wessex Water. Wessex is a top company in the world," he said.

Yeoh also said that YTL is planning a new 1.5-tonne cement factory in Pahang. The company is keen to be a big player in the country's infrastructure development.

"There are a lot of good infrastructure projects coming up under the Economic Transformation Programme. The foundation laid by the government is good and I am confident, as an investor," Yeoh said.

When asked about the status of the high-speed rail linking Kuala Lumpur and Singapore, Yeoh declined to comment.

Meanwhile, he said YTL will continue to expand its business overseas.

Overseas operations, mainly in Australia, the UK and Singapore, currently contribute around 85 per cent to the group's revenue and net profit.

"They are all regulated assets. We have a concession in Australia that runs for 200 years. Whether good or bad times, our overseas and local assets continue to be profitable," Yeoh said.

YTL's earnings rose 16.9 per cent to RM364.82 million in the third quarter ended March 31 2012 from RM312.05 million a year ago, led by its multi-utility business. Revenue rose 23.5 per cent to RM5.24 billion from RM4.24 billion. 

YTL shares closed five sen higher yesterday to RM1.82.

BRDB: Asset disposal plan still on

By Sharen Kaur
sharen@nstp.com.my
Published in NST on May 26, 2012

KUALA LUMPUR: Bandar Raya Development Bhd's (BRDB) planned disposal via tender of its 100 per cent stake in BR Property Holdings Sdn Bhd (BRPH) and selected investment properties for more than RM900 million is still ongoing, a top official said.

BRDB head of retail operations John Sironic said the group is currently working with its financial adviser CIMB Investment Bank Bhd for the asset sale.

"We are working with CIMB to assist the group to implement the proposed disposal in an efficient manner and will be making an announcement on the matter in due course,"he said.

Sironic was speaking to Business Times at the official opening of Pikom ICT Mall Capsquare here yesterday.


In September last year, BRDB received an offer from Ambang Sehati Sdn Bhd to buy Bangsar Shopping Centre (BSC), Menara BRDB and CapSquare Retail Centre in Kuala Lumpur, as well as Permas Jusco Mall in Johor for RM914 million.

BSC and Menara BRDB are parked under BRDB's wholly-owned unit BRPH. Ambang Sehati is 26 per cent controlled by BRDB chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz. He also has an 18.8 per cent stake in BRDB.

BRDB accepted the offer after taking into account the advice and opinion of its main adviser CIMB and independent adviser Public Investment Bank Bhd.

But a month later, BRDB and Ambang Sehati mutually terminated talks for a tender to take place.

It is understood that BRDB will call for a tender by the end of this year or early next year.

Business Times reported last year that BRDB had received three offers from institutional investors for the key assets.

On the group's integrated real estate tourism project in Muscat, Oman, Sironic said development plans are being submitted and the group aims to launch the project's master plan in 2013.

The Pikom ICT mall, launched by Public Accounts Committee chairman Datuk Seri Azmi Khalid, is a new digital lifestyle mall with 102 kiosks, featuring a complete range of information and communication technology products and electronic gadgets.

Scomi: 4-car trains on track

By Sharen Kaur
sharen@nstp.com.my
Published in NST on May 25, 2012
SCOMI Rail Bhd will deliver the first batch of four-car trains for KL Monorail to Syarikat Prasarana Negara Bhd by year-end.

Its unit, Scomi Transit Projects Sdn Bhd, won a RM494 million contract from Prasarana in November last year to supply 12 sets of four-car Generation 2-type trains for its KL Monorail fleet expansion.

The contract is also to upgrade the existing monorail stations as well as the electrical and mechanical system, and build a new depot.

"Work is on schedule. The trains come with new designs, complete with aluminium body and are lighter. They are being assembled at our plant in Rawang," Scomi Brazil country president Hilmy Zaini Zainal said in an interview with Business Times recently.


Scomi's engineering, technology and innovation plant in Rawang is capable of producing 500 monorail cars a year.

Apart from bigger capacity, the trains are environment-friendly and can reduce carbon dioxide emissions by 200 tonnes a day because of their energy efficiency.

Scomi is currently one of two companies in the world providing integrated monorail solutions.

Its major breakthrough in the global monorail space came when it won a RM1.84 billion bid in 2008 for a monorail project in Mumbai, India, with its partner, Larsen & Toubro.

Scomi's share in the Indian venture is worth RM823 million, with projected margins between 10 per cent and 20 per cent.

The Mumbai project has been Scomi's launchpad to compete on an international scale to grab more jobs.

In the last one year, Scomi has won two monorail jobs in Brazil worth a combined RM5.6 billion.

Meanwhile, in a statement issued on Tuesday, Prasarana said the fleet expansion project is proceeding smoothly.

Group director for rail division Khairani Mohamed said two train sets will be in service by end-November and the rest, in the second half of next year.

The expansion project is part of the Government Transformation Programme plan to improve public transportation.

The KL Monorail now uses 12 two-car train sets to service commuters from the KL Sentral in Brickfields to the "Golden Triangle".

The new trains will replace the existing sets, which are running at 35 per cent over-capacity during peak hours. They will increase passengers per car by 50 per cent from 100 to 150 and current ridership of some 65,000 persons by twofold.

Prasarana managing director Datuk Shahril Mokhtar has said the older trains will be kept as spares once the new sets are delivered.

The trains were manufactured locally in 1996.

The KL Monorail services have been in operations since August 31, 2003. The project was completed at a cost of RM1.18 billion.