Fresh from gaining control of two listed companies in under four months, Datuk Raymond Chan Boon Siew talks to The Edge Financial Daily's Jose Barrock and Isabelle Francis about his plans for Naim Indah Corp Bhd and Harvest Court Industries Bhd, as well as rumours of his entry into another listed company.
TEFD: What are the future plans for Naim Indah apart from what Sagajuta already has in the pipeline?
Chan: We are scouting potential landbank, not so much greenfields, but those with (development) approvals. We have identified a few parcels and hopefully we can negotiate (and secure) a few.
Where is the land?
In the hotspot areas. The Klang Valley and Penang are our two focus areas. I can’t really tell at this moment.
What about plans for Naim Indah’s timber segment?
Are there plans to divest any of Naim Indah’s businesses?
We are leaving Naim Indah’s timber (segment) as it is. No plans to divest but only enhancing. What is there to divest? That is why Harvest Court Industries Bhd focuses on construction and Naim Indah on property. Even for Harvest Court, we are confident that it will return to the black by 2012.
Based on the proposal, you are valuing the company (Sagajuta) at RM400 million. Its NTA (net tangible asset) is over RM340 million.
It is not so much about managing the NTA, but it is about managing perception. What is the point of having a high NTA when you can’t grow the business.
For a lot of companies, their share prices do not reflect NTA. There are other factors involved: business prospects, what value that we can create...
Quality of assets is more important. We are quite prudent when we do things.
We have a strong (management) team and if you see, we are quite diversified (in terms of talent). Everyone has his role to play.
There are reports that you were interested in (buying) DBE Gurney Bhd as well?
No lah, it’s not true. No, no, no. There are people who ‘put’ my name there, make me look like a ‘syndicate’. In fact, I did buy a few shares in DBE Gurney but when I heard about the rumours, I disposed of everything.
I don’t own a single share (in DBE Gurney) but people still use my name for whatever reason they have. But, I am definitely focusing on two companies right now: Harvest Court and Naim Indah.
When people said I was going into (DBE Gurney) a big way, I disposed of everything. You can do a search. I don’t own a single share now (in DBE Gurney). It was a very small stake, below 5%.
I’m disappointed when people start to blow it up. Why people disclose it (the shareholding)? They must have their own motives.
What went wrong in the proposed RTO exercise in Jerneh Asia Bhd?
I don’t want to revisit this because I don’t want to create an unnecessary issue for Jerneh and me. We could not agree on certain terms and we parted, that’s all.
Any more acquisitions moving forward?
I can’t say now. It is not easy to acquire a mall. A lot of people don’t understand. Running a mall is not like other business. You have got to run every aspect, from garbage to rental collection, you have to do everything. It is a very tough business.
This article appeared in The Edge Financial Daily, February 14, 2012.
TEFD: What are the future plans for Naim Indah apart from what Sagajuta already has in the pipeline?
Chan: We are scouting potential landbank, not so much greenfields, but those with (development) approvals. We have identified a few parcels and hopefully we can negotiate (and secure) a few.
Where is the land?
In the hotspot areas. The Klang Valley and Penang are our two focus areas. I can’t really tell at this moment.
What about plans for Naim Indah’s timber segment?
Are there plans to divest any of Naim Indah’s businesses?
We are leaving Naim Indah’s timber (segment) as it is. No plans to divest but only enhancing. What is there to divest? That is why Harvest Court Industries Bhd focuses on construction and Naim Indah on property. Even for Harvest Court, we are confident that it will return to the black by 2012.
Based on the proposal, you are valuing the company (Sagajuta) at RM400 million. Its NTA (net tangible asset) is over RM340 million.
It is not so much about managing the NTA, but it is about managing perception. What is the point of having a high NTA when you can’t grow the business.
For a lot of companies, their share prices do not reflect NTA. There are other factors involved: business prospects, what value that we can create...
Quality of assets is more important. We are quite prudent when we do things.
We have a strong (management) team and if you see, we are quite diversified (in terms of talent). Everyone has his role to play.
There are reports that you were interested in (buying) DBE Gurney Bhd as well?
No lah, it’s not true. No, no, no. There are people who ‘put’ my name there, make me look like a ‘syndicate’. In fact, I did buy a few shares in DBE Gurney but when I heard about the rumours, I disposed of everything.
Chan: Harvest Court focuses on construction and Naim Indah on property.
I don’t own a single share (in DBE Gurney) but people still use my name for whatever reason they have. But, I am definitely focusing on two companies right now: Harvest Court and Naim Indah.
When people said I was going into (DBE Gurney) a big way, I disposed of everything. You can do a search. I don’t own a single share now (in DBE Gurney). It was a very small stake, below 5%.
I’m disappointed when people start to blow it up. Why people disclose it (the shareholding)? They must have their own motives.
What went wrong in the proposed RTO exercise in Jerneh Asia Bhd?
I don’t want to revisit this because I don’t want to create an unnecessary issue for Jerneh and me. We could not agree on certain terms and we parted, that’s all.
Any more acquisitions moving forward?
I can’t say now. It is not easy to acquire a mall. A lot of people don’t understand. Running a mall is not like other business. You have got to run every aspect, from garbage to rental collection, you have to do everything. It is a very tough business.
This article appeared in The Edge Financial Daily, February 14, 2012.
