Wednesday, February 01, 2012

The ghost waves over Tebrau Teguh


The shares of Tebrau Teguh, the company linked to ghost stories from Johor lately, were suspended by Bursa Malaysia yesterday pending an important announcement.

It turns out that state-owned Kumpulan Prasarana Rakyat Johor (KPRJ) made a mandatory general offer (MGO) for Tebrau Teguh shares. KPRJ already owned 41.5% in Tebrau Teguh.

This blog had disclosed last week that Dato Lim Kam Hoo had interest to increase his equity holding in Tebrau Teguh and be a more strategic player in the state-company, KPRJ and the Johor property game.

Tebrau Teguh is believed to be the vehicle to acquire state land and flip over to another party for quick buck. How does this turn of event help or give way to Lim Kam Hoo to be a substantial shareholders in Tebrau Teguh?

Let's read The Star report today and commment as we go along:
KPRJ said to launch mandatory general offer for Tebrau Teguh

The Star
Tuesday January 31, 2012

PETALING JAYA: Tebrau Teguh Bhd, which has suspended its shares from trading, may be the next company to undergo privatisation by its major shareholder.

Sources said its major shareholder Kumpulan Prasarana Rakyat Johor (KPRJ) would be carrying out a mandatory general offer for the company.

KPRJ owns 41.15% of Tebrau Teguh.

Tebrau Teguh is a diversified property developer and construction group linked with KPRJ.

KPRJ itself is the Johor state's investment arm.

Tebrau Teguh's shares closed last Friday at 75 sen.

The volume traded last Friday was 12.8 million shares compared with 1.8 million shares the previous Friday.

The 596.39% increase in volume of shares traded could have been due to sentiments on the material announcement.


The most important point to be highlighted in this part of the report is that Tebrau Teguh is going private.

This has been the trend in corporate moves these days. It is usually to avoid the bad publicity that comes with public disclosure, thus useful to keep sensitive information under lid from the easily excitable public.

KPRJ will need to spend money to buy shares from the public till they become the majority shareholder of more than 51%.

But, they have also commitments, like building 200 schools, etc.

Will it keep all the shares it bought from the market or will they sell it to other existing shareholders? Mind you, as sendirian berhad company, the first rights of refusal will be to offer to other existing shareholders.

Now another interesting twist to the report:
A business weekly had reported over the weekend that Danga Bay Sdn Bhd (DBSB) might be acquired by Tebrau Teguh.

DBSB was the custodian of a privatisation contract awarded by the Johor state government in 2000 to develop 1,800 acres of waterfront land along Johor Bahru's Lido Beach. It is therefore the master developer of the Danga Bay waterfront project in Johor.

Should Danga Bay be acquired, Tebrau Teguh would be the biggest owner and developer of sea-fronting projects.

Both KPRJ and Credence Resources Bhd currently own DBSB with 30% and 70% stakes respectively.

Once the acquisition is complete, KPRJ will still remain the majority shareholder of Tebrau Teguh.

The second majority shareholder will be Lim Kang Hoo as he owns 70% of DBSB via Credence Resources.
Presumably, this over-the-weekend report would not have known of the impending MGO. It could be rumours leaked to prop-up interest in the shares on Monday before being suspended.

The report did not say the subsequent equity of KPRJ and Lim Kang Hoo after the property injection. It will take quite a bit of work to figure out the subsequent equity with the MGO taken into account.

Nevertheless, it shows that via property injection the shareholding structure could change. If Tebrau Teguh was to acquire a high valued property in which KPRJ's equity is minimal or nil, KPRJ's final equity in Tebrau Teguh could be reduced.

The rest of the report are merely background information on Tebrau Teguh:

It is also worth noting that Lim is also Ekovest Bhd's co-founder and chairman.

Tebrau Teguh has completed projects through one of its subsidiaries, Bayou Bay Development Sdn Bhd.

It has completed projects involving mainly medium cost apartment and townhouses which are the Oasis Apartment, and the three phases of Bayu Puteri Residences.

Its future developments are Desa Idaman Bungalow and The Oxcy service apartment.

Through its other subsidiary Tebrau Bay Constructions Sdn Bhd, Tebrau Teguh has completed several projects, namely an RM80mil project with the National Housing Department to build 1,500 unit s of government housing apartments in Johor.

The project was completed in early 2007.

Tebrau Bay Constructions is currently in the process of developing 2,700 units of low-cost apartments in the Johor Baru township.
Ignore these projeccts. It is mere formality to fill in the profile of Tebrau Teguh.

As told before here, state controlled Tebrau Teguh will eventually come under control of Lim Hang Hoo. All it takes is a single wave of hand by the ghost.

But the intention is to have the Government inject the strategically located and sufficiently sized state lands into Tebrau Teguh to flip (or for a quick sale) to others.

The likelihood is to have the land injection excercise at a time KPRJ has majority control of Tebrau Teguh. It looks justified for state land to be injected into state controlled company. But at what price?

The suspicion would be at a nomimal price. Why should state inject state land into state company at full value?

Syyy ... please no mention of those minority shareholders. Otherwise, there will be public outcry of selling land at nominal value to companies not wholly owned subsidiary of state but with the existence of other shareholders.

Then suddenly, the ghost wave his hand again and KPRJ is directed to quitely sell their shares at a price without marking the land value to market. The probable reason that can be used is KPRJ need money for it's public infrastructure program.

Since Tebrau teguh is not a public listed company, no announcement is necessary.

The land parcels can be flipped over elsewhere for a tidy profit. The ghost will make sure the public do not know. If the public got to know, it will be the politicians, civil servants and professionals that get blamed by the rakyat.

The ghost and Lim Kam Hoo make their billions.

11 comments:

Anonymous said...

Dear A Voice,
I think you got it spot on! Once upon a time, this GLC got Danga land at nominal price from the state, then sold them to LKH cheaply (& on long term credit) and then helped (for free) to convert the land into freehold. LKH then created a masterplan, some media attention and did some earthworks. A few years later LKH sold 30% share of his company (that own the land) back to this GLC at a whopping market price. This GLC got no cash but LKH says no problem because the GLC was land-rich... Just barter trade some other lands (hundreds of acres) but valued minimally. Perhaps history is repeating itself. WOW,,, LKH, you are so smart!!! Or is it because the GLC and state are dumb and dumber?,,,,

Anonymous said...

It was all scripted and things were being acted as the script dictate it. Johor is doomed! Serve you right for being the bastion of UMNO/BN.

Skilgannon1066 said...

ABITW

If you are so heated up about this issue, why not have the courage of your convictions, nail your flag to the mast and name names?

No matter how high up the totem pole the naming goes.

It's cheap tricks to target Lim Kang Hoo and Ekovest Bhd, naming him directly, while refusing to name all the others involved in these alleged nefarious schemes?

Are you afraid of billion-ringgit law suits or is it a general sense of discretion based on well-founded fears?

Any investigative journalist in the UK, US or Australia would have done better when dealing with such issues in their home countries!

Freddie Kevin said...

Salam Tuan,

Riong Kali makes no apologies, Anwar makes no apologies for that or whatever. Ghosts being ghosts cannot apologise.

Johore is generating billion dollar businesses for the right reasons for wrong parties.

Your self, Bigdog and Cat and even Outsyed have been disclosing so many questionable dealings and yet everything is full speed ahead, business as usual.

Tak paham.

Tak faham.

Sometimes I wonder whether all you guys are just wasting your time.

The powers that be buat bodoh, buat tak tahu.

It's so exasperating and sickening.

I always ask how much is enough..jadi kaya that is.

Warm regards
Freddie

A Voice said...

Skilgannon

I am not a journalist.

And, you've not been reading closely.

Lubok said...

Skil,

It doesn't take a genius to see that ABITW is referring to someone from the Istana. You really should pay a little bit more attention to compensate your inability to make deductions that half a clever person can make. Asking him to name names just to have the courage of his convictions. Now look who's talking? Why not let him know who you are, name, MyKad and phone number? Berani cakap tiada gunanya, Skil ..

ABITW, please ignore cowards like Skil. If he didn't think you had it, he would not have been here.

Bust the ghost. He must be made to know that we are not going to let anyone smear the integrity of the Istana. No one, not even the Sultan or Raja or YamTuan.

Salamu

Yr friend
Lubok [as Anonymous and cowardly as the next cowardly Anonymous)

Anonymous said...

Voice,

KPRJ sold its shares in Tebrau Teguh to IWH of Lim Kang Hoo, and not KPRJ taking private of Tebrau Teguh. I guess Lim Kang Hoo & Ekovest is taking over KPRJ role which is Johor state investment arm. Ghani, you are a legend!

Wednesday February 1, 2012

IWH buys Tebrau Teguh stake triggering mandatory takeover offer
By THOMAS HUONG
huong@thestar.com.my

PETALING JAYA: Tebrau Teguh Bhd's major shareholder Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) is selling a 33.15% stake in Tebrau Teguh to Iskandar Waterfront Holdings Sdn Bhd (IWH) for 76 sen per share.

The offer is for 222 million ordinary shares of 50 sen each in Tebrau Teguh, which works out to a price tag of RM168.72mil.

Tebrau Teguh told Bursa Malaysia that the proposed acquisition would trigger a mandatory takeover offer for the Johor Baru-based property developer and construction group by IWH and parties acting in concert (PAC) with it.

The mandatory offer for Tebrau Teguh would be conditional upon IWH receiving valid acceptances which would result in IWH and the PAC holding more than 50% of Tebrau Teguh's voting shares.

Meanwhile, Tebrau Teguh also announced that it had been appointed by the Johor state government as the developer for 167.13ha in Pengerang, Kota Tinggi, Johor.

The land, within the Johor oil and gas industry hub, is to be developed into a mixed development which would complement the proposed Petroliam Nasional Bhd's RM60bil integrated refinery and petrochemical complex, known as RAPID.

Tebrau Teguh said it had received a letter from Johor's Economic Planning Unit dated Jan 30, 2012 regarding the appointment.

Tebrau Teguh was presently negotiating the technical, financial and legal aspects of the appointment.

“We will make further announcements on the final terms and conditions of the said project later,” said the company.

Meanwhile, IWH's shareholders are Credence Resources Sdn Bhd and KPRJ.

IWH directors are Datuk Lim Kang Hoo, Lim Hoe, Lim Keng Cheng, Lim Chen Herng, Datuk Shahir Nasir, Datuk Ayub Mion and Johar Salim Yahaya.

Kang Hoo is the co-founder and chairman of construction and civil engineering company Ekovest Bhd.

If the proposed acquisition is completed, KPRJ's direct shareholding in Tebrau Teguh would be reduced from about 41.15% to 8%.

KPRJ is the Johor state's investment arm.

Under the terms of the offer, IWH, KPRJ and other relevant parties are to enter into definitive agreements on or before April 29, 2012 concerning the proposed acquisition.

The offer price would also be reduced by an amount equivalent to the net amount of dividend payments or distribution made by Tebrau Teguh prior to the completion of the proposed acquisition.

Tebrau Teguh also said it was not in discussions with any parties to acquire Danga Bay Sdn Bhd from its current owners, Credence Resources and KPRJ.

For the third quarter ended Sept 30, 2011, Tebrau Teguh posted a 29.3% year-on-year jump in net profit to RM3.2mil, mainly due to higher profit generated from property development activity.

Revenue for the quarter under review was slightly lower at RM30.5mil, compared with RM30.6mil a year earlier.

For the nine months ended Sept 30, 2011, the company recorded a net profit of RM3.7mil, compared with RM3.8mil a year earlier.

Revenue for the nine months under review increased 33.4% to RM93.9mil, compared with RM70.4mil a year earlier.

As at Sept 30, 2011, Tebrau Teguh's net assets per share was 75 sen.

Tebrau Teguh's shares closed last Friday at 75 sen, and trading in the company's shares was suspended on Jan 30.

The company's shares will resume trading from 9am on Feb 2.

Anonymous said...

Assalammualikum wbt Dear ABITW,

1.You may like to look at the APH project.

2.I was made to understand that the ghost is also there.....

3.Ghost no ghost, this kind of practices should stop or be stopped !

Thanks.

Friend of Penarik Beca

Anonymous said...

Ha..Ha...Ha...Another silver platter for LKH... just when Tebrau Teguh had secured multi-billion project/land in Pengerang... the company had to be sold to IWH @ LKH at pre-suspension price i.e.76 sen.... WOW... Talk about simple arithmetic. Why didn't Tebrau announce about the project earlier before the sale announcement?

Because then the market price of Tebrau Teguh would be higher, maybe shot above RM1.00... BUT NO!!! If KPRJ does that, the price would be higher for LKH! Just imagine if Tebrau let the market carry its price higher with the prospect of the Pengerang land... maybe 10 or 20 sen higher... But a 10 sen increase means LKH will be RM66 million poorer.

So the question is.... Who does KPRJ/MB works for? LKH or the State/people???? You decide...

In the meantime, LKH is laughing all the way to the bank to cash in another few hundred millions/billions from his marriage with KPRJ.

This is how I see it... LKH owns IWH. After this IWH owns TTB, bought at 76 sen (total RM509 mil). TTB embark on Pengerang project... TTB value increase instantly... maybe to RM1 or RM2 bil. LKH inject TTB into another listed co (maybe one of his existing PLC companies). The LKH @ IWH gets away clean with millions/billion.

What does KPRJ get? A little bit of cash and no more PLC!!! THAT'S ALL...
I wonder if this is the closing act for KPRJ coz there's nothing much left after this.....

Goni Seman said...

I incidentally own some stocks of Tebrau Teguh.

So, in your opinion, what will be the Max Target Price for this stock?

Anybody can give opinion please..

Anonymous said...

Mungkin......SULTAN sibuk biznes gila-gila sapu sana sini projek kerana takut KAMAL HISHAM balik. SO Rakyat Johor atau POLIS atau TENTERA cepat cari budak nama KHJ ini untuk di sembelih oleh Sultan dan Yang Dipertuan Bagi negeri johor dan Jajahan Takluk Johor Darul Ta'zim....baru nanti aman semuanya di Johor...

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