FIC conducting due diligence on Encorp’

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on May 6, 2014

KUALA LUMPUR: Felda Investment Corp (FIC), a unit of Federal Land Development Authority (Felda), is carrying out a due diligence on Encorp Bhd, sources said.

FIC, which was set up last year, is ramping up property development and investment activities and is looking for a good vehicle to support its growth plan.

According to sources, it has identified property development and tourism projects as core activities.

It was reported that FIC is looking to buy a substantial stake in Encorp, a mid-cap construction and property group controlled by chief executive officer Yeoh Soo Ann and chief operating officer Mohd Ibrahim Masrukin.

Yeoh and Ibrahim undertook a management buyout of Encorp last year by taking over Lavista Sdn Bhd, which owned a 30.55 per cent stake in the company. Lavista is a private vehicle of former Encorp executive chairman Datuk Seri Effendi Norwawi.

Encorp has several projects in hand with a combined gross development value of about RM3.5 billion.

Its construction division’s order book is worth about RM2.5 billion while its concessions are valued at RM2.2 billion.

For fiscal year 2013, Encorp’s net profit jumped threefold to RM95.6 million from RM29.7 million a year ago.

The sources said FIC is evaluating the synergies between the two companies.

“This includes efforts to enhance coordination and cooperation between the two entities and scale up businesses. The Felda group has plenty of landbank and some parcels can be turned into integrated developments and mixed housing. There will be profit-sharing between FIC and Encorp,” a source said.

FIC is one of the four income-generating models that will support new generations of Felda settlers.