Vincent Tan to relist 7-Eleven, MOL to raise RM600m

By Sharen Kaur
sharen@nstp.com.my
Published in NST on February 27, 2012


Kuala Lumpur: Berjaya Group founder Tan Sri Vincent Tan will relist 7-Eleven Malaysia Bhd and its MOL Internet business next year to raise more than RM600 million combined.

Tan said he may relist MOL Global Bhd in Malaysia or Singapore, or go for a dual listing as its business is internationally focused.

MOL, which is said to have about one per cent stake in Facebook Inc, the world’s largest social networking service company, operates in Malaysia, Singapore, Indonesia, the Philippines, Thailand, India.

It is also making inroads into Turkey, Brazil and Vietnam.

“MOL is fairly profitable and has good growth currently. As for 7-Eleven, the company will be listed on its own, unlike previously,” Tan said at an event on Saturday.

7-Eleven, the pioneer and largest 24-hour convenience store operator in Malaysia, is a unit of Berjaya Retail Bhd, which was listed on Bursa Malaysia in 2010.

Berjaya Retail was delisted from the local bourse in May 2011 after an unconditional takeover offer by Premier Merchandise  Sdn Bhd, a company related to Tan.

The relistings of 7- Eleven and MOL are part of the billionaire’s pledge to donate half of his wealth to charity during his life time, and also to reduce group borrowings, Tan said.

Forbes Magazine estimates Tan’s net worth at around US$1.2 billion (RM3.6 billion). Tan’s wealth could increase this year, thanks to the initial public offering of Facebook.

On Saturday, Tan pledged to transfer RM600 million worth of shares in two of his companies to the Better Malaysia Foundation, which he set up for charitable causes.

This would be done this year via RM400 million worth of shares in U-Mobile Telecommunication Bhd, which is expected to be listed on Bursa Malaysia in the third quarter of 2012, and RM200 million in the form of irredeemable convertible unsecured loans of Berjaya Corp Bhd (BCorp).

Tan said he plans to donate 10 per cent of 7-Eleven and MOL to the foundation, after the companies are relisted. 7-Eleven and MOL will each have a market capitalisation of over RM1 billion after relisting, Tan said.

On the appointment of a new chairman for BCorp, its chief executive officer (CEO) Datuk Robin Tan Yeong Ching said the board is looking for a candidate outside of the group.

"The new chairman will have big shoes to fill. We are looking for someone who can add value to the group. We are in no hurry to fill the post," he said.

The senior Tan relinquished his position as chairman of BCorp after having earlier handed over the reins of CEO to Robin Tan, his eldest son, in January last year.

The self-made billionaire, who founded BCorp nearly three decades ago, has appointed his son as the interim chairman while the board seeks a suitable candidate for the post.

Property prices spike in Shah Alam

By Sharen Kaur

sharen@nstp.com.my

Published in NST on February 16, 2012

PROPERTY prices in Shah Alam have climbed steadily over the last five years due to a combination of factors, including highway accessibility, said a real estate expert.
Azmi & Co director T Nagalingam said Shah Alam is experiencing spillover effects from the rise of property prices in areas like Subang Jaya, Glenmarie, Bukit Jelutong and Kota Kemuning.

He told Business Times that prices for double-storey terraced houses and condominiums have increased by 50 per cent and about 20-30 per cent respectively, in the last five to six years.

"Traditionally, Shah Alam was occupied by PKNS townships. Now, more players have emerged in Shah Alam such as Glomac Bhd, Naza and I-Berhad lifting up the area," he said.

Nagalingam said the New Klang Valley Expressway, Guthrie Corridor Expressway and the widening of roads have contributed to population growth and the price increases.
I-Berhad is developing i-City in Section 7, Shah Alam, sprawled over 30 hectares.

The 10-year development will feature some 12 million sq ft of gross lettable area for a total gross development value of RM4.5 billion.

Some 35 per cent of i-City will comprise residences. The rest will be offices, commercial and retail space, hotel, convention centre and a technology hub.

Since the project started about four years ago, some 500,000 sq ft, or 366 offices suites, and a 70,000 sq ft data centre have been completed.

To date, 20 per cent of the land area has been developed and it has been successful being an MSC Cybercity with complete information communications technology infrastructure.

The development is provided with dual source power supply, multi-telco environment and super broadband accessibility of 200mbps.

Compugates set to win RM2b solar jobs in Sabah

By Sharen Kaur

sharen@nstp.com.my

Published in NST on February 16, 2012

KUALA LUMPUR: Compugates Holdings Bhd, distributor of consumer electronics products, is expected to clinch several solar-based projects in Sabah worth over RM2 billion, driving growth for its green renewable energy solutions.

Its unit, Compugates Sabah Sdn Bhd (CSSB), has won a pilot project from the Board of Trustees of Sabah parks to supply and install a 6kWh Green Solar Hybrid System in Pulau Gulisaan, Turtle Island Park in Sabah for RM270,000.

The project will enable the turtle sanctuary and hatchery on the island to have round-theclock electricity supply while, at the same time, achieve reduced carbon footprint via the hybrid
system.

A source said Compugates is targeting bigger projects in Sabah and will be setting up a plant soon for around RM30 million.

Compugates managing director Goh Kheng Peow was not available for comment.

The stock was the fifth most active on Bursa Malaysia yesterday. It close unchanged at 11 sen with 51.32 million shares traded.

CSSB is the sole and exclusive distributor of green energy storage systems developed and manufactured by ETI Tech (M) Sdn Bhd for Sabah.

Using the latest lithium polymer cell technology, these systems are environment-friendly as they contain neither lead nor acid.

CSSB has carried out detailed studies for other Sabah parks stations and facilities in the Kinabalu and Crocker Range parks.

Proposals for green renewable energy solutions have been submitted for these facilities, which may be adopted after the successful implementation of the pilot project in Pulau Gulisaan.

The company will commence studies for more Sabah parks facilities at the Pulau Tiga Park, the Tawau Hills Park and the Tun Sakaran Marine Park.

Apart from Sabah parks, CSSB is also in advanced negotiations with other government agencies and local authorities in Sabah to provide green energy solutions.

It has completed a comprehensive study for the Sabah Forestry Department and submitted detailed proposed solutions.

It also will be installing reliable and proven solar-powered LED (light-emitting diodes) street lighting systems to municipalities in the state.

Heilesen moves to bring GPRO back into the black

By Sharen Kaur
sharen@nstp.com.my
Published in NST on February 14, 2012

THE new shareholder of GPRO Technologies Bhd is toying with several ideas to grow the company, including injecting new IT businesses to return it to profitability, sources close to the company said.

GPRO, which develops IT solutions for textile and apparel manufacturers, has been in the red since 2005.

Christian Kwok-Leun Yau Heilesen emerged as a substantial shareholder of GPRO after raising his stake to 24.89 per cent on October 15, 2011 from 15.29 per cent on September 12, 2011.

The stock gained 15 sen, or nearly 160 per cent, after Heilesen bought into GPRO, whose market capitalisation was only RM20 million at end-August last year.

GPRO is the second ACE Market-listed loss-making company that Heilesen bought into in less than two months, after DVM Technology Bhd.

Heilesen, the founder of Funmobile Holding Ltd, a Hong Kong-based mobile content developer, has been appointed as a GPRO executive director.

It is learnt that Heilesen is targeting new markets for the company, such as the northern African sub-continent.

"GPRO will be exploring opportunities in Morocco and Tunisia to develop IT solutions for the apparel manufacturers there.

"It's a niche product and the market for it is growing," the source said.

GPRO executive chairman Jordan Tang Tiong Seng declined to comment when contacted.

He, however, did say the new shareholder would inject fresh ideas into the company.

"The new shareholder may also inject new businesses but there is no firm plan yet," Tang said.

GPRO expects to raise up to RM25 million from its fund-raising exercise in anticipation of new businesses in Malaysia, Vietnam, Indonesia and China.

"The company is expected to do better this year. It's definitely in the uptrend," the source said.

For the third quarter ended September 30, 2011, GPRO posted a net profit of RM389,000 on revenues of RM1.9 million. 

This was mainly attributed to the sales of its software development tool, Arora, and software licences for Shopfloor Data Tracking.

The source said GPRO was optimistic of its long-term prospects as the global garment industry had remained stable.

WTW: Regional real estate funds will return to Malaysia

By Sharen Kaur
sharen@nstp.com.my

Published in NST on February 11, 2012

THERE will be moderate return of regional real estate funds into Malaysia this year looking to buy Grade A
office towers, retail malls and hotels, said a property consultant.


Foreign funds like ING Real Estate Fund, Macquarie Global Property Advisors; Kuwait Finance House,
CapitalLand and Asian Equity Partners have been quiet in Asia since mid-2008 - cautious about the impact of
the US' economic woes.


But sentiments started to change since early last year as prices of properties in Malaysia are still relatively
low, allowing for higher return on investment. There is also strong upside potential if compared with
neighbouring Singapore.


"There are a few foreign funds sniffing the market. But the concern is whether are there enough prime
properties to sell," said CH Williams Talhar & Wong (WTW) deputy managing director Danny S.K. Yeo.


Yeo said in 2011 there were slightly less than 10 major property transactions and he expects the market to do
better this year.


Meanwhile, WTW managing director Foo Gee Jen said projects like the mass rapid transit (MRT), light rail
transit (LRT) line extension and the high-speed train will open up new development areas between Sungai
Buloh and Kajang, as well as Seremban, Malacca and Ipoh.


"We will see a lot of new residential projects coming up in these areas," he told reporters yesterday, after
presenting the 2012 WTW Property Market report.


WTW expects the local property market to grow by 10 per cent in transaction value this year from over RM40
billion last year, and prices to increase moderately.


"We also expect the market for real estate investment trust (REIT) to grow. The REIT size is still small at
US$1.5 billion (RM4.54 billion) compared with US$23 billion (RM69 billion) in Singapore. REITS will
provide an alternative investment to properties," Foo said.


Foo said office rentals will remain stagnant or decline for older buildings but there will be higher asking
rentals for newly completed buildings with green certification and Multimedia Super Corridor status.


He said with over 0.74 million sq m of new office space entering the market this year, older buildings will
face pressure from declining occupancies as tenants seek newer, better quality offices.
-ENDS-

Gamuda-MMC in lead for tunnelling job

By Sharen Kaur
sharen@nstp.com.my
Published in NST on February 9, 2012

Gamuda Bhd-MMC Corp Bhd has submitted the lowest bid for the underground tunnelling works, worth around RM8 billion, for the Klang Valley My Rapid Transit (KVMRT) Sungai Buloh-Kajang line.

Business Times understands that tenders for the 9km tunnelling works closed on January 27, attracting five bidders, including China’s Sinohydro Group, China Railway Corp and Japan’s Taisei Corp.

MRT Corp chief executive officer Datuk Azhar Abdul Hamid had said recently the company preferred local companies for the project, including the tunnelling works, unless it could not find the expertise here.

This means that Gamuda-MMC and Gadang Holdings Bhd-Hyundai will be the only two contenders to be considered for the job, leaving the Chinese and Japanese firms out.

Azhar had also said MRT Corp preferred to award the job to the lowest bidder. Sources close to MRT Corp said bids by the
five groups ranged between RM7 billion and RM12 billion and Gamuda-MMC was the lowest bidder.

“Gamuda-MMC stands a better chance to win the job. It has a seven per cent buffer on top of being the lowest bidder,” a source said.

A key official from Gamuda-MMC, who declined to be named, said the company was confident from the start that it would win the
tunnelling job.

Sources from MRT Corp said the tenders were being evaluated by Independent Consulting Engineers (ICE).

Local engineering firm HSS Integrated Sdn Bhd has a joint venture with SNC Lavalin of Canada to take on the role of ICE.
The source said the evaluation process would take about one month and the contract would be awarded earliest by end of next month.

“The government wants to speed up the award of contracts for the MRT project. It will cost the government about 15 per cent per annum if the project is delayed,” the source said.

Yesterday, SPC Industries Sdn Bhd, a wholly-owned unit of Kimlun Corp Bhd, was appointed by MRT Corp to supply segmental box girders to certain packages of the MRT project for RM223.2 million.

Last month, MRT Corp awarded two construction packages worth RM1.74 billion to IJM Corp Bhd and Ahmad Zaki Resources Bhd.