Tuesday May 27, 2008
The Star Online
Kulim: No problem buying Sindora shares
By ZAZALI MUSA
JOHOR BARU: Kulim (M) Bhd says it would have no problem acquiring the remaining 27.81 million shares in Sindora Bhd, or 28.96%, it does not already own.
Chairman Tan Sri Muhammad Ali Hashim said this was contrary to news reports last week that Kulim’s bid to acquire the remaining shares of Sindora had hit a snag.
Kulim and parties acting in concert collectively hold 71.03% equity in Sindora. This could possibly increase pending the outcome of its mandatory general offer (MGO) for the remaining Sindora shares by May 27.
“The transaction will go as planned between Sindora’s parent company, Johor Corp (JCorp), and Kulim,” he told reporters after Kulim’s AGM yesterday.
Ahamad Mohamad (left) and Tan Sri Muhammad Ali Hashim at the AGM on Monday
Ali, who is also chief executive officer of JCorp, said the acquisition of Sindora would add synergy to Kulim’s existing activities and diversify the latter’s earnings base.
He said the acquisition would result in Kulim increasing its plantation landbank in the country by 6,311ha, or 20.1%, to 37,733ha and multiplying its milling capacity from two to three palm oil mills.
Meanwhile, Kulim managing director Ahamad Mohamad said the company, via its London-listed 50.68%-owned subsidiary New Britain Palm Oil Ltd (NBPOL), was in the midst of acquiring a Papua New Guinea (PNG) plantation company, Ramu-Agri Industries Ltd, for US$43.8mil cash.
“The takeover of Ramu will see NBPOL expanding its landbank in PNG by 30,000ha from the current 40,000ha and increasing the number of its palm oil mills to five from the present four,” he said.
Ramu is listed on PNG’s Port Moresby Stock Exchange and has over 4,500ha of productive oil palm plantations and 16,000ha that has the potential to be developed into oil palm plantations.
For the financial year ended Dec 31, 2007, Kulim recorded revenue of RM2.74bil against RM1.82bil in 2006. Pre-tax profit increased to RM558.79mil from RM235.08mil previously.
