Khazanah plans S$7b project in Singapore

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

Khazanah Nasional Bhd is launching a prestigious project, estimated to be worth over S$7 billion (RM17.19 billion), at Marina South in Singapore by the end of this year or early 2013.

The yet-to-be-named mixed-use integrated project will be developed by M+S Pte Ltd (M+S),which is 60 per cent-owned by Khazanah, the government’s investment arm, and 40 per cent by Singapore’s investment arm Temasek Holdings (Private) Ltd.

The project will feature four prominent residential and office towers, as well as a retail podium, and linked to the Marina and Downtown MRT lines, M+S chairman Datuk Azman Yahya told Business Times.

M+S had secured funding for the project with eight banks in March.

Azman said that the project, which is designed by Germany-based Ingenhoven Architects, is set to be the gravitational epicentre of Singapore’s new Central Business District.

This is the second development for M+S in Singapore. The company is developing land parcels at Ophir-Rochor, which is estimated to have a gross development value exceeding S$4 billion (RM9.82 billion).

The two projects are expected to be completed over the next six years.

The project managers for both the Marina South and Ophir-Rochor developments are indirect wholly-owned subsidiaries of UEM Land Holdings Bhd, which is the real estate arm of Khazanah, and Singapore’s Mapletree Investments Pte Ltd and CapitaLand Ltd.

At the recent Asia Pacific Property Awards 2012, the project at Marina South, which will be Green Mark Platinum-rated, won three national awards – high-rise architecture, mixed-use architecture and mixed-use development.

“M+S has made tremendous headway in bringing our vision to life with this project and the awards recognition is testament to our commitment in creating a superlative landmark development in the
heart of Marina South which sets the standard for international excellence in design and sustainability for integrated living.

“This area has been identified by the Urban Redevelopment Authority as a growth area of Singapore in establishing a global business and financial hub,” said Azman in an interview.

The project’s eminent neighbours will include Marina Bay Sands, Singapore Flyer, Esplanade Theatres on the Bay and the upcoming Gardens by the Bay.

Posco to seal deal with Berjaya Land

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

BERJAYA Land Bhd (BLand), a property and gaming company, is close to inking a partnership agreement with South Korean steelmaker Posco Group on the acquisition of up to 20 per cent in the former's US$3 billion (RM9 billion) project in South Korea.

BLand is developing Berjaya Jeju Resort through its subsidiary, Berjaya Jeju Resort Ltd (BJR), on a 73.2ha site in Yeraedong in Seogwipo City, southwest of Jeju island.

BJR director Tan U-Jiun told Business Times in an interview that it expects to seal the deal with Posco by August or September this year.

"Posco will take not more than 20 per cent stake in the development and they will help to develop it," Tan said.

Posco, which is listed in Seoul, Tokyo, London and New York, is involved in railway development, construction of buildings and infrastructure and steel manufacturing.

This will be the first partnership for Posco in Malaysia and the agreement with BLand is via its unit, Posco Engineering & Construction Co Ltd.

Tan, the younger son of Berjaya group founder Tan Sri Vincent Tan, said the first phase of the project comprising 212 units of luxury villas and market place is slated to be launched by the end of this year or early next year.

"We are awaiting the final approval for the Environmental Impact Assessment on our revised masterplan. We expect it to complete in May," Tan said.

The integrated project will have 1,403 condominium units, villas and bungalows, 935 hotel rooms, a one million sq ft retail mall that will be the largest in Jeju, a medical facility and a market place which will comprise super luxury shops and single-storey residences.

The landmark tower will be a 45-storey hotel, which will be the tallest building on the island. Complementing that is a 505-room casino hotel, which will be South Korea's largest casino complex, Tan said.

"We are launching the villas and market place first to attract higher paying customers to the development. Once the market is guaranteed and it creates an aspirational image, we will release the medium-tier properties," he said.

Tan said BJR hopes to start constructing the villas and market place by August this year.

According to him, BLand has invested close to US$150 million (RM450 million) on infrastructure works for the project, which was completed in December last year. The project will take five to six years to develop.

"We are targeting the Koreans and Europeans. We don't think the European market will be strong because of the eurozone debt crisis but we expect same sales there. We are also targeting China and Japan," Tan said.

Berjaya Jeju Resort recently won an award in the category of mixed- used development for South Korea at the Asia Pacific Property Awards 2012.

SP Setia plans rail hub in KL Eco City

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

SP Setia Bhd, one of the country's biggest developers, is investing up to RM30 million to set up an integrated rail transport hub at its RM6 billion KL Eco City mixed development in Kuala Lumpur.

The company is building a KTM commuter station, which will be integrated with the existing Abdullah Hukum light rail transit (LRT) station at the project location by 2013.

Executive vice president Richard Ong said SP Setia is finalising the design proposals for the KTM station with the rail authorities.

"Subject to the authorities' requirements, the KTM station is estimated to cost around RM30 million," Ong told Business Times.

SP Setia, via its unit KL Eco City Sdn Bhd (KLEC), is developing KL Eco City on the former Kampung Haji Abdullah Hukum site at the end of Jalan Bangsar. The 10-year development will comprise several residential towers, offices and a 5.7 million sq ft retail podium.

Ong said KLEC has began preliminary site works such as earthworks, tests piles and relocation of existing utility services, including realignment of Sungai Pantai (river diversion works).

Substructure works such as piling and foundation are expected to commence in two months, said Ong, who is also KLEC project director.

Ong said these are part of the construction works for Phase One of the project, comprising 12 blocks of boutique offices, a strata office and a corporate office tower on a four-storey retail podium, worth almost RM2 billion.

SP Setia will construct a pedestrian bridge linking KL Eco City and The Gardens at Mid Valley City to enhance the development.

Meanwhile, SP Setia will invest RM150 million to link KL Eco City to the Federal Highway via two dedicated ramps.

The ramps will enable traffic heading towards Petaling Jaya and Kuala Lumpur to gain direct access into KL Eco City and to exit the development directly onto the Federal Highway.

There will also be linkages to Jalan Maarof in Bangsar via Lingkaran Syed Putra. KL Eco City will also have direct access to and from the New Pantai Expressway (NPE) via the existing Jalan Pantai Baru and Jalan Bangsar interchange.

Ong said SP Setia has procured all the necessary approvals from the relevant authorities on the design proposals for the ramps and the linkages.

"Tenders have been called and the evaluation process and award is expected to be completed in the next two to three months," he said.

Scomi eyes RM2.5b job in Brazil

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

ON TRACK: Scomi to form consortium with Malaysian players to bid for second monorail project in Sao Paulo

KUALA LUMPUR: SCOMI Engineering Bhd, a 67 per cent-owned subsidiary of Scomi Group Bhd, is eyeing a new monorail project in Brazil, which is estimated to be worth more than RM2.5 billion.

While details on the project are sketchy, it is understood the 20km monorail job is in Sao Paulo.

If awarded the contract, it would be the second monorail project for Scomi in Sao Paulo.

Scomi had won two monorail projects in Brazil – in Sao Paulo and Manues – over the past year. They are worth a combined RM5.2 billion.

Scomi made a bid for a second monorail job in Sao Paulo last year but lost out to Canada’s Bombardier Inc.

For the latest project in Sao Paulo, Scomi Brazil country president Hilmy Zaini Zainal told Business Times the company was preparing to submit a bid for the job in the current quarter.

“The tender closes end-June and we will form a consortium with local players to bid for the job,” Hilmy said.

Hilmy said Scomi was eyeing more rail projects in Brazil, including the 350km high-speed rail project linking Sao Paulo to Rio de Janeiro, estimated to worth around US$25 billion (RM76.5 billion).

“We are keen to participate in the high-speed rail project, especially in the systems portion or sub-systems work. We plan to form a consortium and bid for the works.”

Hilmy said several monorail projects would be coming up in Brazil over the next 24 months and Scomi would be submitting bids through joint ventures with locals.

“Brazil is an exciting market. We aim to be a long-term player here,” Hilmy said.

According to Brasell Gestao Empresarial vice-president Halan Lemos Moreira, the Brazilian state and federal governments had allocated US$50 billion to boost transportation in Brazil over the next three years.

“Our target is to secure at least one monorail project a year in Brazil. In Sao Paulo alone, there are potentials for five more monorail projects.

This is in addition to the two jobs already awarded to Scomi and Bombardier,” he said.

Scomi had earlier signed a non-binding memorandum of understanding with Brasell and Montagens e Projetos Especiais SA (MPE) to set up a joint-venture company to manufacture and assemble rolling stocks in Brazil, as well as to pursue other rail-related services projects there.

In a statement to Bursa Malaysia yesterday, Scomi said it had, together with MPE and Brasell, also applied for the registration of a limited liability joint-venture (JV) company in Amazonas state, Brazil.

The JV company, to be known as Quark Fabricacao de Equipamentos Ferroviarios e Servicos de Engenharia Ltda, will have a capital of R$1 million (RM1.63 million), divided into one million quotas, at one Real each. Scomi will hold 40 per cent equity in the company, with MPE holding 55 per cent and Brasell five per cent. 

The investment in the JV company will be funded by Scomi, MPE and Brasell in proportion to their respective equity holding.

“The JV company will carry out manufacturing, assembly and marketing of monorail rolling stock, providing rail-related engineering services such as maintenance, repair, assembly and installation, and, marketing rail related systems and services.

“The incorporation of the JV company does not have a material impact on the earnings or net assets of Scomi Engineering group for the financial year ending December 31 2012,” it said.

Berjaya Land courts Parkson

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 24, 2012

IN TALKS: Firm hopes retail chain will take up space at its RM7.5b Great Mall of China in East Beijing 

BERJAYA Land Bhd (BLand) is in discussions with Parkson Holdings Bhd (PHB) to open a department store at its RM7.5 billion Great Mall of China (GMOC) in East Beijing, China.

"Parkson is expanding in China and we are trying to talk them into taking up space at GMOC but nothing is firm yet," BLand chief executive officer, Datuk Francis Ng Sooi Lin, told Business Times.

Parkson, a Lion group company, has more than 50 outlets in China and currently derives some 70 per cent of sales from the Chinese market.

The department store operator has indi-cated plans to open more stores in China and in Asia.

Shares of Parkson rose one sen to close at RM5.26 yesterday.

BLand, which has development projects in Malaysia, China, South Korea, Japan and Vietnam, remained unchanged at 87 sen.

GMOC will be the world's largest integrated entertainment and commercial shopping complex when completed in about five years.

The 18.5 million sq ft complex is being developed in two phases on the outskirts of Beijing in the Hebei province, some 30 minutes' drive from the Central Business District.

The developer is Berjaya Great Mall of China Co Ltd (BGMOC), which is 51 per cent owned by BLand, and the rest by Berjaya Group founder Tan Sri Vincent Tan via his Berjaya Times Square Caymen Ltd.

Under the Phase One development, BGMOC is building a retail and pedestrian mall, each with a built-up of more than one million sq ft, three theme parks and parking.

Ng said there is more interest in GMOC and BLand is talking to several other big names to take up the retail space.

With the completion of Phase One by October 2013, some 150,000 visitors are expected daily at GMOC.

"GMOC will attract a lot more visitors once fully developed because of the product offering," Ng said.

Unlike other shopping malls in Beijing, which are mostly shopping-driven, GMOC will be the first mall in China to house three indoor theme parks, as well as an indoor aquarium and monorail.

GMOC will also have a multi-purpose convention hall and Lyric Theatre, which will be one of the largest international arts and cultural exchange centres in China, for exhibitions, operas, performances and shows from all over the world. 

The hall will integrate with the office towers, serviced apartments, business and leisure hotels under Phase Two, which will commence this year.

BLand seeking partners for Great Mall of China

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 21, 2012


KUALA LUMPUR: Berjaya Land Bhd (BLand) is in talks with several Malaysian and foreign investors to
help develop Phase Two of its RM7.5 billion Great Mall of China (GMOC) project in Hebei Province in
China.

Its chief executive officer Datuk Francis Ng Sooi Lin said BLand is also seeking funding for the second phase of the project. BLand is developing the integrated mall complex, the biggest in the world, through Berjaya Great Mall of China Co Ltd (BGMOC).

BGMOC is a 51:49 joint venture between BLand and Berjaya Group founder Tan Sri Vincent Tan, via his
private arm Berjaya Times Square Cayman Ltd.

Ng said two of the biggest banks in Malaysia have offered financing of up to US$200 million (RM614
million) each for the phase two development.

"We are also looking at Bank of China for our funding options. We have not made a decision," Ng told
Business Times in an interview.

Ng said Phase Two is estimated to cost around RM3 billion and will take three to five years to complete.
The GMOC project will cover over two million sq ft of retail space and feature two hotels, two serviced
apartments, office towers, a convention centre, a theatre and a parking complex. There will also be an indoor monorail, three theme parks and aquarium.

Phase Two will comprise the development of hotels, serviced apartments, office towers, convention centre,
theatre and monorail. Piling work will begin in June, Ng said.

The phase one construction, comprising a retail and pedestrian mall, three theme parks and parking bays,
began in 2010 and is expected to complete by October next year.

BGMOC has a paid-up capital of US$165 million (RM507 million), almost half of which has been utilised for the phase one development.

Ng said the key selling points of the GMOC are the theme parks, the aquarium, the theatre and the 455,000 sq ft convention centre with seating capacity of 10,000.

"These will be the main attractions for the project. The main challenge will be funding for Phase Two. Once
we have secured the financing, we expect the project to sell on its own," Ng said.

Berjaya’s Great Mall of China to be ready by 2017

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 20, 2012

BERJAYA Land Bhd (BLand) is building the world’s biggest integrated mall complex estimated to be worth about RM7.5 billion on a 32ha site in China’s Hebei Province, its chief said.

Called Great Mall of China, the 18.5 million sq ft development, which is similar to the concept of Berjaya Times Square in Kuala Lumpur, is expected to be completed within the next five years, said BLand chief executive officer Datuk Francis Ng Sooi Lin.

Once completed, the project will feature more than two million sq ft of retail space, two hotels, two serviced apartments, office towers, convention centre, theatre and a parking complex.  There will also be an indoor monorail, three theme parks and acquarium.

Berjaya Great Mall of China Co Ltd (BGMOC), a 51 per cent subsidiary of BLand, is undertaking the development. 
Berjaya Group founder Tan Sri Vincent Tan holds 49 per cent of BGMOC through Berjaya Times Square Cayman Ltd.

Under the first phase development, BGMOC will build a retail and pedestrian mall, each with one million sq ft of space, an extreme park, a family park and a water park, as well as parking facilities.

Ng said the gross development cost for phase one was estimated at RM1.5 billion.

BGMOC has a paid-up capital of US$165 million (RM506.6 million) and almost half the amount had been utilised for the Phase One development, Ng said in an interview with Business Times.

Some 40 per cent of Phase One had been completed and the remaining portion was expected to be completed by October next year, Ng said.

“We are quite confident we can carry out Phase One without loans. By August, we will open for sale around 540,000 sq ft of space at the retail mall and hope to rake in some RM750 million in gross development value,” Ng said.

He said BLand would retain the remaining 460,000 million sq ft of retail space and the one million sq ft pedestrian mall for recurring income.

Currently, the world’s biggest mall is The Dubai Mall in United Arab Emirates, with a built-up area of 12.1 million sq ft.

KL-S’pore rail project may cost RM30b

By Sharen Kaur

sharen@nstp.com.my

Published in NST on April 19, 2012

KUALA LUMPUR: The 300km high-speed rail project linking Kuala Lumpur and Singapore will cost between RM20 billion and RM30 billion.

The final figure will be known after a feasibility study is completed at the end of the year by the Land Public Transport Commission (SPAD).

It is understood that 60 per cent of the cost will go towards infrastructure development, including civil works and track laying, and about 30 per cent on rolling stocks.

A source said: “The rail network is expected to cut travel time between Kuala Lumpur and Singapore from six hours to 90 minutes. This will require trains travelling  at 250kph.  

“The project is important for Malaysia as the same alignment can carry freight during off-peak hours.”

Germany’s Siemens proposed the use of its Velaro trains, which have a top speed of 350kph.

SPAD chief executive officer Mohd Nur Kamal said yesterday the implementation of the  project would depend on the study.   The aspects under consideration include risk element, options of alignment, cost, economic benefits, ridership, and social and political impact.

“This is a fresh study. Previous studies done by other promoters looked at their interest first, then the nation’s. Our study looks at the nation’s interest first.

“The no-go decision on the project has not been reached. If it is given the go-ahead, we will solicit bids to come up with the best choice for the government. We don’t want them to    depend on government funds.”

The government’s Economic Transformation Programme highlighted the rail network as a high-impact project.

UEM Group-Hartasuma, China Infraglobe Consortium-Global Rail  and YTL Corp have made presentations on the project to the National Key Economic Area laboratory.

 “In Malacca, the government is planning a tram system. On the east coast, we have initiated a study on the needs there,” Nur said.

Study on new Johor-Singapore rail, road links

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 19, 2012

THE Malaysian and Singaporean governments will appoint a foreign consultant by early next month to undertake a detailed study on the proposed Rapid Transit System (RTS) linking Johor Baru and the island republic.

It is understood that the study, which will take six to 12 months to complete, will determine the best options for the RTS development and project cost.

People familiar with the matter said several options were being considered by both governments.

They said the governments were mulling whether to build an elevated rail and road link or underground tunnels between the two cities.

“The study will also indicate whether it will be viable to have Johor Baru and Singapore connected by both rail and road,” one of the sources said.

When the RTS was first mooted, the plan was to connect Johor Baru and Singapore via a rail network.

The source said the plan would have cost both governments not more than RM10 billion.

But a new initiative was announced in January this year by Prime Minister Datuk Seri Najib Razak with his Singapore counterpart, Lee Hsien Loong, where both governments said they were examining the prospect of expanding the scope of the RTS to include an underground road link between both countries.

“The project cost has not been discussed by both the governments. The budget can only be estimated after the conclusion of the study by the consultant,” the source said.

The source said the Land Public Transport Commission (SPAD) would provide the detailed requirements for a study to be conducted by the consultant on the feasibility of a road tunnel.

Malaysia is currently connected to Singapore via the Johor Singapore Causeway and the Second Link.

“If both the rail and road tunnels are approved, each will be independent from the other for safety reasons. They will not be connected,” said the source.

The source said that tenders for the RTS project would be issued by Malaysia and Singapore through the Joint Ministerial Committee, simultaneously, in the second half of next year.

The project is targeted to be operational by 2018.

Classic Floral Services - This is what they call a "classic" Event Management Company

The love for art and flowers led a teenager to relish her dream of running an event management company-cum-decorator.

Now, almost two decades later, Mrs Sachdev is proud owner of Classic Floral Services, a premier wedding, event planner and flower specialists, founded in 1998.

The custom of enhancing an event, especially wedding and engagement parties dates from ancient times. Nowadays, a celebration can be made merrier with the establishment of event organisers and wedding planners such as Classic Floral Services.

Classic Floral Services creates beautiful flower arrangements with inspiring designs for all occasions including indoor and outdoor corporate events, annual dinners, wedding and engagement parties, as well as birthday celebrations.

Mrs Sachdev and her team offer infinite creative choices for any design or theme for any event. They always look to impress their clients with personal care and attention as well as creativity that one expects when working with a professional company.

Through the request of the company's very influential list of clientele, the concept for live fresh arrangements is adhered to.

"It is important when planning a corporate event of a wedding reception that you carry a theme throughout the entire day, and one of the better ways to get this going is through flower arrangement," says Mrs Sachdev.

"There is nothing lovelier than a reception venue decorated in the same theme and colour as your bridal bouquets and costumes," she adds.

Flowers as we know have many uses. They can be arranged exquisitely as hand-held wedding bouquets, backdrops, poises and corsages, or neatly over arches and stands, main table for guests and VIPs, and cars. Flowers can be scattered on dinner tables and on walkways to enhance the ambience.

Mrs Sachdev use roses, daisies, carnations and gerberas that come in pink, yellow, white, orange and red to decorate a hall. White flowers, especially roses, are coloured according to the theme of the event to blue or black, which is unusual and outstanding.

She also uses jasmine flowers for some occasions, which breaths the air with a tantalizing fragrant aroma.

Besides transforming the venue into a haven, Classic Floral Services offers laser and fairy lightings, brightening up the place in a hue of colours.

The family-run business, which is managed by her husband, Mr Sachdev, lives by its motto, "To deliver the best in quality and service".

"I have been planning and organising weddings since my early 20s. It is something I have enjoyed doing as it keeps me at a healthy pace. You must have a passion in doing what you do," says Mrs Sachdev, the proud mother of three charming kids.

Being a professional decorator means going (more often than not) beyond the call of duty and being prepared to handle last-minute requests.

Mrs Sachdev says that decorations are planned in accordance with one's budget and she does her best for her clients.

"Its all about being artistic and having the right equipments and expertise to make everything smooth and pleasant for our clients," she says.

Classic Floral Services works closely with several hoteliers in the Klang Valley, golf resorts and community hall operators in booking the venue for an event on the date requested by a client.

Mrs Sachdev has had many wonderful experiences over the past decade, designing and enhancing the most lavish wedding parties and company gala dinners.

To spice up the event, Classic Floral Services uses smoke machines, bubble machines or snow machines, an array of fresh flowers from the hills, amazing lighting system, making the hall bright and colourful, or soft and romantic, on some occasions.

"When customers require something that’s not in our portfolio, we do our best to accommodate where possible. It is all about being humbly creative to make the event memorable," Mrs Sachdev adds.

Classic Floral Services has had some of the most uncommon corporate events to take care off. In 2008, the company had used 8kgs of fresh red chillies to decorate a college hall, being the theme for the night.

On another occasion, a hall was decorated with more than a thousand coloured bangles from India.

One other event had all the tables decorated with leaves and green apples to the amusement of many. When the event was over, some of the guests literally 'plucked' the apples from the tables.

As for weddings, the company was the pioneer in Malaysia to make wagons using coloured papers from India, as requested by a client.

"There is so much that needs to be done when planning an event that is special to somebody. We single out every detail in every project that we have to make it perfect," Mrs Sachdev says.

While there are many reputable event management companies in Malaysia, many of them outsource the services and request made by a client and it is players like Classic Floral Services that provide the necessary "ingredients" for the event to run with success.

Seeing is believing but decorating a hall or tying the knot will no longer be a hectic affair thanks to companies like Classic Floral Services. The company goes every step to ensure that all events that it undertakes run smoothly, leaving a lasting impression, not just for the host but the guests, too!

If you have a forth-coming event, be it a corporate function, wedding, engagement or annual dinner and parties, call Mrs Sachdev at  016 3332385. You could also email her at naveensachdev@gmail.com or classic.floral@hotmail.com. Website is www.classicfloralservices.com

-ENDS-

Balfour Beatty buying Ingress stake in BBRail?

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

The UK’s Balfour Beatty plc is in talks with Ingress Corp Bhd to buy over the latter’s equity in Balfour Beatty Rail Sdn Bhd (BBRail), sources familiar with the plan said yesterday.

BBRail, which is involved in rail electrification business, is 70 per cent owned by Balfour Beatty - an infrastructure giant, and 30 per cent by Ingress, an auto parts supplier and engineering services provider.

According to market sources, Global Rail Sdn Bhd, a private railway engineering firm controlled by Fan Boon Heng, is also in talks with Ingress to buy over its stake in BBRail.

Fan is the former managing director of BBRail. His company, Global Rail, has strong ties with Invensys Rail, Bombardier and Siemens.

Last month, Global Rail won a RM120 million contract with IJM Corp Bhd to build for KTMB a six-car set electric multiple unit depot. 

It is learnt that Ingress had so far declined both the offers as BBRail is anticipated to win a RM950 million systems contract for the Ampang light rail transit (LRT) line extension project. 

Business Times reported last week that Malaysia is expected to award the job for systems work for the Ampang LRT line extension to a consortium led by the UK’s Invensys plc, a global engineering group. 

BBRail and Ingress are part of the consortium. The contract is likely to be awarded in the current quarter and will help boost bilateral trade ties between Kuala Lumpur and London. 

The two UK groups are fighting hard for the LRT systems contract with the help of their government. 

It is understood that there is concern in the shareholding structure of the consortium as it lacks local involvement. 

“If the contract is awarded to a consortium led by foreign companies, there must be proper transfer of technology and localisation programmes in the contract. Currently, there is also a fight for the 30 per cent stake held by Ingress and the matter must be resolved soon,” sources said. 

Ingress had won several contracts since September last year from Tenaga Nasional Bhd and Perusahaan Otomobil Nasional Bhd to the tune of RM245 million. The stock closed unchanged yesterday at RM1.06. 

Eight companies had bid for the LRT job with prices ranging between RM950 million and RM1.45 billion. The Invensys-led consortium was the lowest bidder. 

The other bidders were Posco-Sojitz-Thales, Colas-CMC Engineering-Thales, George Kent-China Railway-Thales, Samsung-LG-Thales, SNC Lavalin-WW Engineering-Bombardier, Siemens-Scomi Engineering and Ansaldo-Emrail-Leighton. 

Business Times reported last December that Syarikat Prasarana Negara Bhd favoured Posco-Sojitz as it submitted the second lowest bid at about RM1.1 billion and offered to use the communication-based train control signalling system supplied by Thales.

Far East upbeat on property sales

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 14, 2012
SINGAPORE:FAR East Organization, a private developer with an annual revenue of S$5.5 billion (RM13.4 billion), expects investors from Southeast Asia to continue buying its properties despite the global turmoil.

The diversified group is targeting property buyers from Malaysia, China and Indonesia, said its chief operating officer Chia Boon Kuah.

This is because they accounted for a majority of property sales to foreigners last year.

According to a report by Savills Singapore, about 9,300 of the 15,904 properties sold last year were acquired by foreigners, and Malaysia took 20 per cent of the share.

Chia said for properties launched by Far East, Malaysians bought mainly in Woodlands, Bukit Batok and the Thompson area, each worth between S$1 million (RM2.45 million) and S$3 million (RM7.3 million).

"The buyers were mostly from Johor, followed by Penang and Kedah. Malaysia is an important market to us. It is the second biggest market after Indonesia," Chia said in an interview recently.

He said the group will continue to attract investors from Southeast Asia who want to be part of Singapore's growth story.

"Demand for property is there because wealth is growing. There is enough liquidity and foreigners continue to find Singapore attractive despite cooling measures by the government to curb speculative buy," Chia said.

But Far East is launching three to four projects less this year, compared with 14 in 2011. It is also targeting to achieve S$3 billion (RM7.3 billion) in property sales this year, lower than the S$4 billion (RM9.8 billion) achieved last year.

"We had the highest market share of 25 per cent last year in terms of property sales. We are lowering our sales target because demand for properties is expected to slow down in the second half of this year," Chia said.

Far East had launched five projects since early this year and achieved sales of S$1.8 billion (RM4.4 billion).

Some of the group's recent projects which had attracted Malaysians included Alba, Boulevard Avenue, Orchard Scotts, The Scotts Tower, Woodhaven and Watertown.

"We hope to maintain our 2011 revenue of S$5.5 billion this year but it would be challenging. We are bullish on the hospitality market and room sales have been holding strong so far," Chia said.

Far East, founded in 1960, owns and operates the largest corporate leasing and hospitality portfolio in Singapore, including eight hotels and 11 serviced residences.

End of the line at KTMB for Aminuddin?

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 10, 2012

KUALA LUMPUR: Keretapi Tanah Melayu Bhd (KTMB) president Dr Aminuddin Adnan is expected to leave the national rail company in August after only a year into his two-year contract, government sources said.

Aminuddin is widely expected to be replaced by Mohd Azharuddin Mat Sah, the vice-president of special projects at the managing director's office at Khazanah Nasional Bhd.

Speculation had been rife that Land Public Transport Commission chief operating officer Azahar Ahmad would be replacing Aminuddin.

"But Azharuddin is expected to come in and turn around KTMB," the sources said.

KTMB, which is involved in freight, inter-city and commuter train services, among others, has been bleeding red ink since it was corporatised in 1992 due to high operating costs, although it did make net profits of between RM9 million and RM15 million from 1993 to 1995.

In 2007, it posted a net loss of RM116.1 million on revenue of RM349.2 million. It is believed that for 2008, KTMB posted a loss of RM150 million.

KTMB is still suffering from high operating costs of RM200 million a year despite efforts to lower expenditure by reducing manpower and stopping non-profitable operations.

Aminuddin, who was previously the chief executive officer of Express Rail Link (ERL) Sdn Bhd, was surprised when contacted.

"This is news to me. I have not received any official letter," he told Business Times.

Aminuddin was appointed as KTMB president in August 2009 on a two-year contract. His contract was extended by another two years in August last year.

During his stint at KTMB, he faced several problems with the Railwaymen's Union of Malaya (RUM) due to non-performance of the company.

This led to several companies, including MMC Corp Bhd, proposing to take over and privatise KTMB.

RUM is against MMC or any other party taking over KTMB.

In December last year, Business Times reported that MMC planned to pump in as much as RM1 billion to take control of KTMB's operations.

Aminuddin said in an interview last month MMC had started the process of taking over KTMB's operations, with KTMB being asked to assist in due diligence matters.

It is learnt that MMC had appointed up to 30 local and foreign consultants last month to commence due diligence on KTMB, which is expected to be completed by June.

Govt still keen on high-speed rail link

By Sharen Kaur

sharen@nstp.com.my

Published in NST on April 9, 2012

PUTRAJAYA: THE government is still keen on the high-speed rail project linking Kuala Lumpur and Singapore, the Land Public Transport Commission (SPAD) said.

SPAD chief executive officer Mohd Nur Ismal Mohamed Kamal, however, stressed that it will depend on the outcome of a feasibility study.

Mohd Nur Ismal confirmed that the feasibility study, which started last month, will take six to 12 months to complete.

The aspects under consideration include the alignment, cost, benefits, risks, economic impact and ridership.

"We need to examine the numbers in more detail. Our mandate is to find the best way to implement the project, if it is given the goahead.

"It will be done in a transparent way where there will be a tender process and bidding," Mohd Nur Ismal told Business Times.

The government reiterated in November 2011 that it may go ahead with the project but recently said the rail network is not a priority for now.

The focus currently is to link Johor Baru and Singapore first with a rapid transit system by 2018 as part of efforts to increase connectivity between the two cities.

The high-speed rail network has been highlighted as a high-impact project in the government's Economic Transformation Programme.

Three groups have made presentations on the project to the National Key Economic Area laboratory.

They are UEM Group-Hartasuma Sdn Bhd, China Infraglobe Consortium-Global Rail Sdn Bhd and YTL Corp Bhd.

Some of them said they would not be making further commitments on the project unless there is certainty it will kick off in the next two to three years and there is some form of government involvement.

"It is not viable for private parties to take control of the project. At around RM12 billion, you cannot get your returns fast as the service is more for the public," said one company.

Mohd Nur Ismal said the high-speed rail project will not be driven by any private sector proposals.

"There will be many more proposals coming in but no one will drive the project except the government. The outcome of the project will depend on the government," he added.

RM1b boost for i-City

By Sharen Kaur

sharen@nstp.com.my

Published in NST on April 7, 2012

I-BERHAD, an integrated ICT urban centre developer, is adding RM1 billion worth of new products at i-City, increasing the project's gross development value (GDV) to RM4 billion.

The company is adding a riverfront development called Clarke Quay@i-City and a 500,000 sq ft data centre complex to the project, said its chief executive officer Datuk Eu Hong Chew.

The data centre will be built on a 3.3ha site owned by the company directly opposite the 41ha i-City project off the Federal Highway.

Clarke Quay@i-City will be developed on a 1km stretch on the 7km Sungai Rasa, which is being upgraded by the state government under a flood mitigation development programme for Shah Alam.

"We expect construction on Clarke Quay@i-City and the data centre to commence by next year and in 2014, respectively," Eu said at the progress review update on the i-City development yesterday.

Present were Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim, Shah Alam mayor Datuk Mohd Jaafar Mohd Atan and I-Berhad founder Tan Sri Lim Kim Hong.

Eu said the project's GDV will exceed the RM4 billion mark as more products are added during the 10-year development period.

"Currently, the theme parks are located on undeveloped land. They will be relocated to the one million sq ft mall which we are building. That would give us more land to build other stuff," Eu said. So far, 20 per cent of the 41ha has been developed. 

I-Berhad has another 12ha for landscaping and leisure activities, which was awarded by the state government in 2011 under a 21-year concession.

Eu said i-City is one of the key contributors to the economic growth of Selangor, creating new businesses and promoting foreign direct investments. 

"When i-City is completed in 10 years, it will have a population of 25,000, and 50,000 knowledge workers. Now we get up to four million visitors a year and we are planning to triple that in 10 years," Eu said.

Invensys-led group tipped to win Ampang LRT job

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 7, 2012

Malaysia is expected to award a RM950 million contract for system
works for the Ampang light rail transit (LRT) line extension
project to a consortium led by the UK’s Invensys plc.

Government sources said the contract is expected to be awarded within the next one month and will help strengthen bilateral trade ties between Kuala Lumpur and London.

British Prime Minister David Cameron is expected to visit Malaysia next week.
Invensys is a global engineering and information technology group.

Its consortium partners are Balfour Beatty Rail Sdn Bhd, which is 70 per cent owned by the UK’s Balfour Beatty plc – an infrastructure giant with strong finances, and Ingress Corp Bhd.

Engineering group Ingress, which posted a pre-tax profit of RM31.05 million in fiscal year 2011, also owns 30 per cent of Balfour Beatty Rail.

Eight companies had bid for the LRT job with prices ranging between RM950 million and RM1.45 billion.

Tender for the contract closed on June 16. The Invensys-led consortium was the lowest bidder.

The other bidders were Posco-Sojitz-Thales, Colas-CMC Engineering-Thales, George Kent-China Railway-Thales, Samsung-LG-Thales,SNC Lavalin-WW Engineering-Bombardier,Siemens-Scomi Engineering and Ansaldo-Emrail-Leighton.

The Invensys-led consortium was among four contenders which did not make it to the final round after the bid close. The others were SNC-WW, Siemens-Scomi and Ansaldo-Emrail-Leighton.

Invensys had also failed to be pre-qualified as a bidder for the Klang Valley Sungai Buloh-Kajang My Rapid Transit project by MRT Corp.

According to the sources, the government had reviewed the bids and extended the validity of the contracts to May 27 2012.

The systems contract was due to be awarded by end-February.

Business Times reported last December that Prasarana Negara Bhd favoured Posco-Sojitz as it had submitted the second lowest bid, at about RM1.1 billion, and offered to use the Communication-Based Train Control(CBTC) Signaling System supplied by Thales.

French-based Thales’ CBTC technology has been in use since 1985 and the system has been proven on 53 projects around the world.

Prasarana had awarded the system works contract for the Kelana Jaya LRT line extension and monorail system to Thales on a direct negotiated basis because of the system.

China firm wins RM530m LRT deal

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 6, 2012

 
The government has awarded a contract worth as much as RM530 million to China’s CSR Zhuzhou Electric Locomotive Co Ltd (CSR ZELC) to supply trains for the Ampang light rail transit (LRT) line extension project.

CSR ZELC received the letter of award to build and supply 20 sets of six-car light rail vehicles yesterday, sources said.

The trains are meant to service the existing LRT network and the new line to Putra Heights. The award comes at a time when Malaysia and China are strengthening their bilateral trade ties.

Trade between Malaysia and China rose by 42.8 per cent year-on-year to reach US$74.3 billion (RM227.7 billion) in 2010.

Sources close to the government said the award came amid plans by CSR ZELC to invest in a manufacturing plant in Batu Gajah, Perak.

It is learnt that CSR ZELC is planning to use Malaysia as a hub for its expansion into the Asean region. CSR ZELC is one of the major electric locomotive manufacturers in China and a subsidiary
of China South Locomotive & Rolling Stock Corp Ltd.

The Chinese company is not new to the Malaysian market. It has earlier secured a RM1.89 billion contract from the Transport Ministry to supply 38 sets of six-car trains for the national railway company Keretapi Tanah Melayu Bhd.

The purchase was part of the government project under the National Key Results Area programme to improve public transportation in the Klang Valley.

The tender for the supply of trains for the LRT extension project, which closed on December 12, 2011, attracted six bidders.

Their prices ranged from RM500 million to RM850 million. It is understood that CSR ZELC is the lowest bidder, beating Bombardier Transportation/Scomi Rail Bhd, Caf Spain/Tranz-i Sdn
Bhd, China North Railway/EmRail Sdn Bhd, Rotem Korea/CMC Engineering Sdn Bhd and Romania Astra/Smh Rail Sdn Bhd.

-ends-

I-Berhad continues to seek partners for i-City project

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 2, 2012

SHAH ALAM: I-BERHAD, an integrated ICT urban centre developer, will continue to seek strategic partners to accelerate developments at its RM3 billion i-City project here, its chief said.

Chief executive officer Datuk Eu Hong Chew told Business Times that the company is talking to several local and foreign firms who are considering co-developing some of the land.

I-City is a knowledge and tourism project, sprawled on 42 hectares. Some 20 per cent of the project has been developed with the rest to be completed over the next 10 years, Eu said.

The project has around 21 high-rise buildings comprising office towers, residences, SOHO blocks, a five-star hotel and serviced apartment-cum-hotel.

It also consists of a one million sq ft mall, a cybercentre, shop offices, retail and several leisure components like snow walk and a theme park.

In December 2011, I-Berhad entered into a 30:70 joint venture with Everbright International China to co-develop 12.5ha in i-City to build the mall, some residences and MSC (Multimedia Super Corridor) offices.

Apart from financing the construction, Everbright would lead a consortium of Chinese companies to set up operations in i-City, as well as promote the properties in China.

I-Berhad is looking for similar deals but Eu declined to say who the company is talking to.

Eu said I-Berhad is in talks with several local and foreign institutional investors who want to buy some of the buildings at i-City, via en bloc sale.

"We will close deals when we get a good price," Eu said.

Eu expects the company's performance to improve from this year, led by its leisure division, which currently generates half of its earnings, and property development.

For the financial year ended December 31 2011, I-Berhad made a pre-tax profit of RM1.84 million on revenues of RM27.3 million.

The stock closed 75 sen last Friday, five sen higher than the previous day's closing.

"The game plan is to continue investing in the leisure components as it is revenue generating and will attract new businesses here and spur demand for residences," Eu said.

I-Berhad is 65 per cent owned by its founder and chairman, Tan Sri Lim Kim Hong, and 18.1 per cent by state-owned investment fund, Permodalan Nasional Bhd.

Mid Valley Johor in the making

By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 29, 2012

KUALA LUMPUR: IGB Corp Bhd is replicating Mid Valley City here in Johor with the project's gross development value exceeding RM6 billion, its chief said.

The megamall project in Johor Baru is the second such development for IGB and is also the first project for the developer in Johor.

Group managing director Robert CM Tan said IGB is bullish on the Johor market, especially with continuous growth in Iskandar Malaysia and more Singaporeans going there for properties.

Tan said "Mid Valley Johor" will take some five years to complete and construction is expected to begin by the end of this year or early 2013.

There are many issues to be addressed such as land matters and finalising the project's development plan for approval.

"We have not finalised the planning of the project. We will undertake a study to identify the best components. Right now, we plan to build a 1.5 million square feet mall, either one or two hotels, high-end residences and commercial towers.

"We hope to resolve the land issues and other matters soon," he said yesterday after inking a memorandum of understanding with Selia Pantai Sdn Bhd to set up a 70:30 joint venture company named Southkey Megamall Sdn Bhd.

Johor Mentri Besar Datuk Abdul Ghani Othman was present at the signing ceremony.

Tan said IGB will maximise the value of the land, estimating the project's gross development cost to be in the region of RM3 billion.

Southkey Megamall will buy 15 hectares for the project. The land is part of Selia Pantai's RM15 billion Southkey development, which started early last year.

Selia Pantai is a public-private partnership between Selia Group founded by Datuk Mohamed Zaini Amran, and Johor state investment company, Kumpulan Prasarana Rakyat Johor.

Tan said IGB is also mulling over developing a megamall project in the north, most likely Penang.

"We are always looking for opportunities to expand. We are also looking for real estate developments overseas," he said.

IGB shares closed at RM2.85 yesterday, seven sen lower than Tuesday.

UEM Land targets more foreign joint venture deals

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

KUALA LUMPUR: UEM Land Holdings Bhd hopes to seal joint venture (JV) deals with major property developers in India, Vietnam and Myanmar by year-end, as part of its aspiration to become a global property player by 2015.

Managing director (MD) and chief executive officer (CEO) Datuk Wan Abdullah Wan Ibrahim said the company is now in discussions with the developers.

"It will be good if we can ink a deal with each party by year-end. Our aim is to have a strong regional presence," he said yesterday.

The merger of UEM Land and Sunrise Bhd in early 2011 had provided a much-needed boost to the company, which now has property developments in Canada and management projects in Singapore.

Wan Abdullah said UEM Land, which is the property development arm of state-owned Khazanah Nasional Bhd, has big targets as it approaches 2015 and 2016.

By then, it hopes to achieve a much higher revenue and net profit, with more land in its pocket, he said at the MIDF Investment luncheon talk. Also present were UEM Group Bhd MD and CEO Datuk Izzaddin Idris and MIDF group MD Datuk Mohd Najib Abdullah.

The acquisition of Sunrise had increased UEM Land's landbank in prime areas of central Kuala Lumpur, Mont Kiara and Seri Kembangan.

For the financial year ended December 31 2011, UEM Land posted a net profit of RM301.7 million on revenue of RM1.7 billion, up 55.1 per cent and 261.5 per cent, respectively, from 2010 financial year.

UEM Land's headline KPIs (key performance indicator) for 2012 is to launch RM4.5 billion worth of projects and achieve property sales of RM3 billion.

"We are looking at net profit growth of 40 per cent, and return of equity of 10 per cent. By 2015, you can imagine the numbers we are targeting," Wan Abdullah said.

UEM Land's current projects include East Ledang and Puteri Harbour in Nusajaya, Johor; Symphony Hills in Cyberjaya; 28 Mont Kiara, Arcoris Mont Kiara, Angkasa Raya and Summer Suites in Kuala Lumpur; and Quintet in Richmond, Canada.

Its partners for some of the developments are Bandar Raya Development Bhd, Sime Darby Bhd, UM Land Bhd, Gamuda Bhd, MCL Land and Emkay Group.

Wan Abdullah also said that UEM Land is looking for more strategic partners to undertake land development in Nusajaya, especially at the Southern Industrial & Logistics cluster to up the ante.

Eversendai venturing into oil and gas business

By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 16, 2012

KUALA LUMPUR: EVERSENDAI Corp Bhd aims to double its revenue to RM2 billion in five years and to help achieve the target, the company is venturing into the oil and gas business.

It is targeting fabrication of offshore structures like modules, topsides, bridges and flare towers in Malaysia and the Middle East.

Eversendai hopes to embark on such jobs within the next two years, said its chairman and group managing director, Datuk A.K. Nathan.

He said the company is also looking to buy local companies that are involved in steel and power to help increase its revenue and margins.

"We expect these two new ventures to contribute about 25 per cent to our earnings in five years from now," Nathan said yesterday at a briefing for analysts and fund managers.

Eversendai posted a pre-tax profit of RM136.02 million for the financial year ended December 31 2011 on revenue of RM1.03 billion.

Nathan said he is bullish on Eversendai's performance and that the company's growth is not limited by the US debt crisis nor the eurozone debt crisis.

Eversendai's has an existing order book of RM1.4 billion and is bidding for jobs worth in the region of RM12 billion.

He said Eversendai is eyeing several mechanical equipment and structure erection works for power plant and petrochemical projects as well as civil construction jobs in the Middle East, India and the Commonwealth of Independent States.

Besides that, the company will be focusing on getting new infrastructural jobs like from airports, hospitals, convention centres and commercial projects, Nathan said.

"We are a marathon runner and not a 100-metre runner and we will run faster in the last lap to achieve our RM2 billion target in five years. For us, the world is the playing field.

"We believe the RM2 billion target is achievable. We will be selective with projects and not take on jobs that give us less than 15 per cent margins or which have high risks," he added.

Eversendai has won contracts worth a combined RM467 million this year alone.

Nathan said the company expects to secure two or three more contracts soon, each worth more than RM150 million.

PKNS raises the bar for this year's earnings

By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 12, 2012

PETALING JAYA: THE Selangor State Development Corp (PKNS), a diversified group, hopes to increase last year's pre-tax profit of RM440 million in the current financial year ending December 31 2012, its chief said.

Established under the SEDC Act 1964, PKNS has over 20 subsidiaries and 14 associated companies. Combined, these companies chalked up revenues of about RM1.3 billion last year.

The 2011 earnings of PKNS are the highest ever achievement since its inception in 1964.

PKNS general manager Othman Omar told Business Times that he is bullish on the group's performance and certain key performance indicators are being met to spur growth.

These include maintaining sustainability and improving profitability for a good growth path year-on-year, he said.

"The key is to make money and contribute to the state. We are improving our delivery system in all aspects," he added.

Since 2009, the PKNS Group has achieved an average profit before tax (PBT) growth rate of 20 per cent.

During the 2009 global financial crisis, when other developers were deferring their projects or delaying their launches, PKNS had picked up pace to deliver an operational profit of RM160 million, higher than 2008.

For 2009 and 2010, the group's PBT increased to RM300 million and RM384 million respectively.

PKNS had embarked on a open tender system since 2009, leading the way to be more transparent in its dealings with private developers.

This has led to PKNS saving about RM115 million in 2010 and some RM100 million last year.

Othman said PKNS is targeting to save around RM100 million to RM120 million this year.

The PKNS Group has a healthy balance sheet with 0.1 gearing, to take on new projects and embark on land acquisition.

Currently, the PKNS development unit has over 4,657ha of undeveloped land in various parts of Selangor at historical value of over RM2 billion.

The plots are located mainly at Bernam Jaya, Selangor Science Park 2 in Cyberjaya, Kota Puteri and Antara Gapi.

The unit has smaller pockets of land in Shah Alam, Petaling Jaya, Bangi, Kota Damansara, Kelana Jaya and Ampang.

Combined, the existing landbank has potential to generate a gross development value exceeding RM15 billion.

Dijaya in amalgamation exercise

By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 7, 2012

PETALING JAYA: DIJAYA Corp Bhd will buy assets worth RM1.1 billion owned by its major shareholder, Tan Sri Danny Tan Chee Sing, under a consolidation exercise to spur its growth.

The exercise is specifically aimed at streamlining and rationalising a majority of land and properties held by Tan into Dijaya.

Both parties entered into a conditional amalgamation exercise agreement yesterday.

Under the deal, Dijaya will acquire 73 properties, including 24ha of land in Kuala Lumpur, Penang, Johor and Sabah, and investment assets held by Tan, excluding the liabilities incurred by these properties, for RM948.7 million.

The deal is expected to conclude by September this year.

Tan said the assets would give Dijaya good recurring income of eight per cent per annum.

The assets include Dijaya Plaza in Kuala Lumpur, Casa Square in Puchong, Intan Square in Petaling Jaya, Jaya Square in Subang and Wisma TT in Bandar Sunway.

The land acquisition, meanwhile, will increase Dijaya's land bank to 348ha, generating a gross development value of RM37 billion over the next 12 to 15 years.

Dijaya managing director Datuk Tong Kien Onn said the deal would benefit the company over the long term as all the assets would help improve its financial figures.

The exercise, upon completion, will increase Dijaya's market capitalisation to over RM1 billion at a price of RM1.50 per share. This will make the company one of the largest property developers on the Main Market of Bursa Malaysia.

The acquisition will be satisfied by RM250 million cash and the balance via the issuance of redeemable convertible unsecured loan stocks (RCULS), with a staggered conversion price range of RM1.30 to RM2.50 over a 10-year period.

As an integral part of the deal, Dijaya will undertake an equity fund raising exercise via a renounceable rights issue of up to 491.3 million new shares of RM1 each at an issue price of RM1.20 per rights share, together with a bonus issue of up to 122.83 million new RM1 shares.

Tan and the parties related to him will provide Dijaya with undertakings to subscribe for RM250 million in value pursuant to the proposed rights issue, which will constitute the minimum subscription level for the proposed rights issue.

Dijaya has also proposed a debt funding via the issuance of up to RM500 million guaranteed commercial paper/medium term notes programme (CP/MTN) with an option to issue detachable warrants to further meet the business investments and long-term capital requirement of the group.

In view of the proposed amalgamation exercise, Dijaya has cancelled its proposed private placement as announced on August 18 last year to mitigate any further dilution of shareholdings in the company.