Published in NST on June 3, 2010
BUILDER Loh & Loh Corp Bhd says the entry of Saudi Arabia's PetroSaudi International Ltd (PSI) in the group will provide a platform for Loh & Loh to bid for international water and energy projects.
On December 29 2009, PSI had offered to acquire all shares in UBG Bhd, the parent of Loh & Loh, for RM2.50 a share.
PSI said it plans to take private and delist UBG and its units Putrajaya Perdana Bhd and Loh & Loh, once the takeover of the three firms for RM1.4 billion is complete.
Negotiations between PSI and UBG on the entire exercise are still ongoing.
"Business will be as usual for us after the takeover. I cannot comment much on the exercise except that PSI will open up a lot of opportunities for Loh & Loh," chief executive officer Jason Loh said after the company's shareholders meeting in Kuala Lumpur yesterday.
Currently, Loh & Loh is focused in Malaysia and has bid for RM2 billion worth of water and energy projects, including road and bridges. It expects to secure some 25 per cent of the jobs, he said.
The company is eyeing new jobs, including the Kelana Jaya and Ampang light rail transit (LRT) extension and water projects.
"We will continue to bid and look at each tender to see how it fits into our order book. Tenaga Nasional Bhd (TNB) has a few jobs coming up and there are talks to build more hydroelectric dams.
"The Hulu Terengganu hydro project awarded to us in March by TNB will alleviate our plans to become a player in building hydro dams," Loh said.
Loh & Loh and its Chinese partner Sinohydro Corp Ltd have a letter of intent for civil works worth RM828 million for the project.
Loh said he is optimistic that the company will do better this year as it launches Idaman Hills in Selayang, comprising 38 semi-detached homes and 142 bungalows, and The Peak, a high-end residential gated project in Bandar Sri Damansara, worth a combined RM370 million, in June and by December, respectively.
Last year, the company posted a net profit of RM27.5 million, 16 per cent more than in 2008.
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