BCorp to gain access to Atlan’s prime tracts in Penang

KUALA LUMPUR (May 4) : Berjaya Corp Bhd’s (BCorp) proposed acquisition of an associate stake in diversified entity ATLAN HOLDINGS BHD [] could give the buyer access into prime tracts in Penang.

A glance at Atlan’s annual report indicates that the firm ,the businesses of which, include duty-free goods trading, automotive components production, besides real estate and hotel operations, owns prime freehold land in Penang’s north eastern enclave.

These tracts have a combined area of 1.17 sq metres with a net book value of RM38 million, Atlan's annual report shows.

Conglomerate BCorp via subsidiary BERJAYA LAND BHD [] (Bland) is making inroads into the Penang real estate market after an over 20-year hiatus. BLand made news in August last year when it acquired a 23ha (57.3 acre) portion of the Penang Turf Club (PNTC) tract for RM459 million.

Berjaya group chairman Tan Sri Vincent Tan had said then that the conglomerate planned to develop RM1.52 billion worth of residential units on the PNTC tract.

BCorp announce to the exchange on Thursday that it is raising its stake to about 25% in Atlan via a purchase of 40 million shares or 15.8% of Atlan’s issued base from Cipta Nirwana (M) Sdn Bhd. The buyer intends to pay RM170 million or RM4.25 a share for the purchase.

According to BCorp, it already owns 9.18% in Atlan, of which, a 7.9% portion was acquired via off-market deals for RM85 million or RM4.25 a share.

The market had responded positively to BCorp’s latest move. The stock rose as much as 2.5% or two sen to 82.5 sen on Friday before settling lower at 82 sen for lunch break with some four million shares done.



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Stocks to watch: UM Land, VS Industry, BCorp, SelProp

KUALA LUMPUR (March 30): Malaysian stocks may find support on Friday from quarter-end window dressing by fund managers on the final trading day of the first quarter. This could spur the FBM KLCI’s advance against the backdrop global economic growth concerns and anticipation of Malaysia’s next general election.

Analysts believe technical dynamics could still push the FBM KLCI to its historical high of 1,597 points, but the crucial question is whether the index can sustain its gains.

“Strategy wise, investors should capitalise on further rallies to take profits and stay nimble, in the wake of volatile external markets as well as ahead of the looming 13th general election,” Hong Leong Investment Bank Bhd research head Low Yee Huap wrote in a note.

The 30-stock FBM KLCI rose 1.69 points to close at 1,585.44 points on Thursday following a volatile trading session.

Stocks to watch on Friday include UNITED MALAYAN LAND BHD [] (UMLand), V.S. Industry Bhd, Berjaya Corp Bhd (BCorp), Selangor PROPERTIES [] Bhd, and CREST BUILDER HOLDINGS BHD []. Other stocks to watch are CypARK RESOURCES BHD [] and HAI-O ENTERPRISE BHD []

UMLand and Iskandar Investment Bhd have signed a collaboration agreement to conduct negotiations which will facilitate UMLand’s plan to acquire and develop tracts in Iskandar Malaysia, Johor .

V.S. Industry, a contract manufacturer of electronic products, said net profit fell 34% to RM6.64 million in the second quarter ended Jan 31, 2012 from RM10.1 million a year earlier, dragged down by lower income from its associates. Revenue, however, rose 4% to RM265.77 million from RM255.51 million.

BCorp’s net profit fell 53% to RM15.28 million in the third quarter ended Jan 31, 2012 from RM32.47 million a year earlier. Bottom line was hurt by operating expenses for its retail business and lower property sales, besides the absence of income from discontinued operations.

Selangor Properties’ net profit fell 89% to RM552,000 in the first quarter ended Jan 31, 2012 from RM5.06 million a year earlier due to currency translation losses.

Crest Builder and joint venture partner Detik Utuh Sdn Bhd will undertake a RM220 million mixed development in collaboration with landowner Syarikat Prasarana Negara Bhd.

Cypark posted net profit of RM6.51 million in the first quarter ended Jan 31, 2012, a marginal 0.6% lower than RM6.55 million a year ago but it remained upbeat for its core business of solid waste management and renewable energy.

Hai-O’s net profit rose 42.8% to RM9.06 million in the third quarter ended Jan 31, 2012 from RM6.34 million a year ago, boosted by its principal subsidiary, the multilevel marketing division. Its revenue increased 8.9% to RM62.79 million from RM57.62 million.

For the nine-month period, its net profit increased 21.6% to RM24.66 million from RM20.28 million in the previous corresponding period. Its revenue rose 2% to RM169.96 million from RM164.99 million.



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BCorp 3Q profit down 53% year-on-year

KUALA LUMPUR (March 29) : Berjaya Corp Bhd’s (BCorp) net profit fell 53% to RM15.28 million in the third quarter ended Jan 31, 2012 from RM32.47 million a year earlier. Bottom line was hurt by operating expenses for its retail business and lower property sales besides the absence of income from discontinued operations.

In a statement to the bourse on Thursday, BCorp said its revenue, however, grew 2% to RM1.81 billion from RM1.78 billion a year earlier.

Cumulative nine-month net profit climbed 26% to RM308.82 million from RM244.47 million a year earlier while revenue was up 1% to RM5.29 billion from RM5.24 billion.

BCorp said it expects to maintain its results for the remaining quarter of the current financial year against the backdrop of global economic uncertainties.



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Plantation-based BJ Corp plans RM255m debt notes, rated AAA

KUALA LUMPUR (March 19): PLANTATION [] based BJ Corporation Sdn Bhd has proposed to issue 10-year debt bank-guaranteed medium-term notes (MTN) programme of up to RM255 million.

RAM Rating Services Bhd said on Monday it had assigned a preliminary AAA(bg) rating to the MTN and accorded a stable outlook for the rating.

It said the enhanced rating reflected the unconditional and irrevocable bank guarantee extended by MALAYAN BANKING BHD [] which it had rated AAA/Stable/P1.

“The backing of the bank guarantee enhances the credit profile of the proposed debt facility beyond BJ Corp’s inherent credit strength,” it said.

RAM Ratings said BJ Corp’s core activity is cultivating of oil palm plantations and it is an indirect unit of Asian Plantations Ltd -- a plantation group listed on the Alternative Investment Market of the London Stock Exchange since November 2009.

The group’s oil palm plantations are spread across three estates, all of which are in Sarawak. BJ Corp’s 4,795-ha plantation is the smallest.

Proceeds from the proposed debt facility will be used to refinance existing bank loans, partially finance the CONSTRUCTION [] of a vertical steriliser mill and fund development expenditure.

RAM Ratings’ head of real estate and construction ratings, Shahina Azura Halip described BJ Corp as a debutant in the plantation sector and lacked an operating track record.

“As plantings only began in 1Q 2009, its trees are primarily in the immature category (up to three years). We envisage that the company will only be able to demonstrate meaningful production and yield records after four years,” she said.

“However, the limited operating track record is partly mitigated by the Company’s experienced management team. BJ Corp’s estate is led and managed by a group of experienced planters, who bring with them 15 to 33 years’ experience each from their previous stints with reputable plantation groups in the country,” she adds.

Shahina said additionally, BJ Corp’s stand-alone credit strength reflected the company’s heavy expenses, a result of the significant costs involved in developing and nurturing its young estate. This is compounded by the challenge of the estate’s undulating terrain.

Due to the greenfield nature of its estate as well as its hefty costs and fixed overheads, the company’s financial position is rather weak.

“BJ Corp is highly dependent on equity injections from its parent; APL had extended financial support to the Company during its formative years. We expect this firm support to continue,” she said.

As at end-October 2011, advances from the group amounted to RM17.9 million; these are unsecured, interest-free and have no fixed repayment terms.

The solid support is further underlined by the availability of a corporate guarantee from APL to the guarantor.

Nonetheless, the ratings agency said APL’s cashflow-generating aptitude is deemed weak due to its young estates. Consequently, the group also has to rely on financial support from its major shareholder, Keresa Plantations Sdn Bhd.

“Due to lack of information, however, RAM Ratings is unable to ascertain the extent of such support or the ability of Keresa Plantations to extend such backing, should the group’s future funding needs substantially exceed what has been required to date.

“Meanwhile, BJ Corp’s financial performance will remain vulnerable to the vagaries of the oil-palm industry, chief of which is the volatile price swings for crude palm oil. Nevertheless, demand for CPO will remain supported by increasing food consumption and the world’s expanding population,” said the ratings agency.



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Vincent Tan turns 60, announces retirement as Berjaya Corp chairman

KUALA LUMPUR (Feb 23): BERJAYA CORPORATION BHD []'s founder Tan Sri Vincent Tan Chee Yioun announced his retirement from active corporate role in the company on Thursday, which was his 60th birthday.

BCorp, which is the flagship of the Berjaya Group of companies, said Tan had relinquished his position of chairman after handing over the role of CEO to his eldest son, Datuk Robin Tan Yeong Ching, in January 2011.

"I turned 60 years old today, I founded the Berjaya Group in 1984 and have dedicated a good part of my working life to Berjaya. I personally feel a great sense of pride and accomplishment in having built up a reasonably significant group," he said in a statement.

The group said his son would hold the position of chairman and CEO until a suitable candidate has been identified.

"Although I am no longer chairman or a board member, I will nevertheless always be available to the management of the group for consultation and advice whenever needed," Tan added.



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Vincent Tan quits as Berjaya chairman

Berjaya Corp said founder Vincent Tan has quit as chairman of the Malaysian gaming, property and insurance group as he seeks to retire from an active corporate role in the company.

Tan, who turned 60 today, remains committed as the company’s controlling shareholder and wants to focus on promoting more charitable and social programs, Berjaya said in a statement in Kuala Lumpur today. His eldest son, Robin Tan, will assume the chairmanship position until the board identifies a replacement, it said.

He founded the Berjaya Group in 1984, according to the statement. -- Bloomberg



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Berjaya Land records RM8.05m loss from sale of BToto shares

KUALA LUMPUR (Feb 9): BERJAYA LAND BHD [] (B-Land) recorded a net loss of about RM8.05 million at group level after it disposed of 18.301 million BERJAYA SPORTS TOTO BHD [] shares for RM79.61 million.

B-Land said the shares were disposed of on Thursday at an average selling price of RM4.35 and the shares represented about 1.37% of BToto.

“The disposed shares which were purchased since 1992, have a total carrying value of about RM87.66 million in the books of B-Land group. The net proceeds from the disposals will be utilised as working capital and repayment of bank borrowings of the B-Land group,” it said.

B-Land said after the disposals of the 18.301 million shares, the company and its unlisted subsidiaries owned 533.607 million BToto shares or 40.00%.

BERJAYA CORPORATION BHD [] and its unlisted subsidiaries also hold 132.439 million BToto shares representing 9.93%.

“With the disposals, the entire BCorp Group (including the B-Land group) has a total of 666.046 million shares representing approximately 49.93% equity interest in BToto. BToto is deemed a subsidiary of B-Land, which in turn is a listed subsidiary of BCorp. BCorp remains the ultimate holding company of BToto,” it said.



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Berjaya approves Cosway's privatisation

HONG KONG: Cosway Corp Ltd, the Hong Kong-listed unit of Malaysian gaming-to-property conglomerate Berjaya Corp Bhd, said today that Berjaya shareholders had voted to privatise the company.

Cosway’s shares were suspended on Friday at HK$1.07 each, ahead of the results of the vote in Malaysia.

They will resume trading on January 26, after the break in Hong Kong for the lunar new year.

Berjaya has already issued rights to fund the plan.

Cosway said in a filing to the Hong Kong stock exchange today that shareholders had approved the deal in a vote in Malaysia.

The deal is expected to cost HK$2.31 billion (US$296.9 million), a 21 per cent premium to Cosway’s HK$1.10 value when the privatisation bid was announced in July.

Cosway markets consumer goods. The Malaysian arm of Cosway owns 45 per cent of the stock of the Hong Kong-listed entity, with Berjaya holding another 7 per cent.

CCB International is advising Cosway on the deal. - Reuters



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BCorp gets Bursa Securities’ nod for RM765m new loan stocks

KUALA LUMPUR (Jan 4): BERJAYA CORPORATION BHD [] has received Bursa Malaysia Securities Bhd’s approval for a corporate exercise involving the issuance of RM765.32 million new loan stocks under its rights issue.

It said on Wednesday that Bursa Securities had in its Jan 3 letter approved the corporate exercise subject to obtaining approval from the Securities Commission for the issuance of the new ICULS.

BCorp planned to issue up to RM765.32 million nominal value of 10-year 5% irredeemable convertible unsecured loan stocks (ICULS)at 100% of its nominal value together with 765.32 million free detachable warrants.

It also proposed to privatise Cosway Corporation Ltd, a 56.83% subsidiary of BCorp.



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BCorp 2Q net profit down 74%

KUALA LUMPUR: Berjaya Corp Bhd’s net profit for 2QFY12 ended Oct 31 fell 73.5% to RM22.96 million from RM86.54 million a year earlier. There were no contributions from the former 40%-owned Berjaya Sompo Insurance Bhd (BSompo), which it disposed of in the previous quarter.

The year-on-year decline was magnified by a higher base last year when numbers were boosted by a one-time gain on disposal and impairment writebacks, BCorp said in notes accompanying its accounts.

In addition, slower property sales nudged 2Q revenue 1.8% lower to RM1.69 billion from RM1.72 billion a year earlier. That also dampened higher revenue growth registered by its gaming business as well as consumer marketing and distribution businesses, BCorp said.

Nonetheless, the healthy numbers from its distribution and gaming businesses shored up numbers for 1HFY12 ended Oct 31, 2011. Net profit rose 38.5% to RM293.54 million from RM212 million a year earlier, while revenue inched 0.9% higher to RM3.49 billion from RM3.46 billion.

“Pre-tax profit increased by about 31.43% compared with the six-month period of the previous year. This increase was mainly due to the exceptional gain recognised arising from the disposal of 40% equity interest in BSompo,” it said.

Looking forward, BCorp said the operational performance for the remaining quarters “may be challenging” due to uncertainties in the global economy. BCorp fell 1.5 sen yesterday to close at 95.5 sen with 9.63 million shares done.



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Berjaya Corp dives on lower Q2 net

Berjaya Corp, a property, insurance and gaming group, dropped 1.1 per cent to 94.5 sen, set for its lowest close since September 26.

Second-quarter net income fell 73 per cent from a year earlier to RM23 million (US$7.2 million), according to a stock exchange filing. - Bloomberg



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HDBSVR sees local bourse extending its 6-day winning streak

KUALA LUMPUR (Dec 30): Hwang DBS Vickers Research (HDBSVR) says with Friday being the final trading day for 2011, the local bourse could extend its six-day rising streak.

As for Thursday, the research house said the FBM KLCI had chalked up cumulative gains of 41.5 points or 2.9%, to close this year on a high note.

HDBSVR said on Friday this comes after major U.S. stock indices rose between 0.9% and 1.1% at the closing bell last night as key economic data released showed that the US is weathering the European debt crisis, with jobless claims in the US reaching its lowest level since June 2008.

Stocks to watch on Friday investors include Berjaya Corp, after it released its weaker 2QFY12 results last night.

HDBSVR said QSR Brands could also see trading interest after the Malay Chamber of Commerce Malaysia said it would offer RM6.90 per share for the company, higher than the RM6.80 per share previously offered by Johor Corp and CVC Capital.

Cypark Resources was awarded a RM14.7 million contract to upgrade a landfill site in Negeri Sembilan.



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Stocks to watch: Cypark, Box-Pak, IRCB, Trinity

KUALA LUMPUR (Dec 31): With Friday being the last trading day of the year, there could be some last-minute window dressing activities for blue chip stocks to ensure the FBM KLCI closes well above the 1,500 mark and ends the year in a positive note.

The FBM KLCI closed closed 2.58 points higher at 1,506.69. Year-to-date, the 30-stock benchmark index is down only 0.81%. The overall market tone was firmer with advancing counters beating decliners 492 to 254.

However, investors should also expect some profit-taking on stocks which had run up recently like Proton on strong newsflow.

As expected, external developments from Europe and the US would determine the final trading day.

Among the stocks which could see trading interest are CYPARK RESOURCES BHD [], BOX-PAK (MALAYSIA) BHD [], INTEGRATED RUBBER CORPORATION [] Bhd (IRCB), Trinity Corporation Bhd (formerly TALAM CORPORATION BHD []), KUMPULAN EUROPLUS BHD [] and BERJAYA CORPORATION BHD [].

Cypark received a contract worth RM14.71 million to upgrade the landfill site at Kok Foh, Jempol in Negeri Sembilan. It received the letter of acceptance for the contract from the National Solid Waste Management Department.

Shares of Box-Pak could continue to see selling pressure after KIAN JOO CAN FACTORY BHD [] stated it was unaware of any negotiations to privatise Box-Pak. Box-Pak closed 24 sen down to RM2.23 with 5.35 million shares done.

Meanwhile, IRCB posted net loss RM5.29 million in the third quarter ended Oct 31, 2011 from net profit RM2.88 million a year earlier, on lower output and volatile latex prices. Its revenue for the quarter fell 21.96% to RM24.83 million from RM31.82 million in 2010.

For the nine months ended Oct 31, IRCB posted net loss of RM17.93 million compared to net profit RM3.36 million in the previous corresponding period while revenue decreased to RM86.99 million from RM107.24 million.

Trinity posted net loss of RM29.26 million in the third quarter ended Oct 31, 2011 from RM83.29 million a year ago.

The losses were due to an impairment provision of RM9.20 million made on a piece of development land to be sold to a third party and also provisions made for doubtful debts of RM14.93 million.

Kumpulan Europlus posted net profit of RM1 million in the third quarter ended Oct 31, 2011 compared with net loss of RM19.31 million a year ago.

Its pre-tax profit of RM1.33 million versus pre-tax loss of RM16.08 million a year ago was mainly due to interest income of RM1.66 million, accretion of equity interest in Talam Corp Bhd of RM 2.21 million and fair value gain of RM 2.09 million on short term investments.

Thai conglomerate Charoen Pokphand Foods PCL’s Malaysian company is acquiring property-based MKH Bhd’s food processing and livestock farming operations for RM64 million.

Berjaya Corporation Bhd posted net profit of RM22.96 million in its second quarter ended Oct 31, 2011, down 73.4% from RM86.54 million a year ago in the absence of write-backs.

It said in the previous quarter, there were certain gains on write-back of impairment relating to associated companies and recognition of gains on disposal of subsidiary companies.

“Operationally, the current quarter results are comparable to the previous year corresponding quarter results,” it said.



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Berjaya Corp 2Q earnings dn 73% to RM22.9m on absence of writebacks

KUALA LUMPUR (Dec 29): BERJAYA CORPORATION BHD [] posted net profit of RM22.96 million in its second quarter ended Oct 31, 2011, down 73.4% from RM86.54 million a year ago in the absence of write-backs.

It said on Thursday that in the previous quarter, there were certain gains on write-back of impairment relating to associated companies and recognition of gains on disposal of subsidiary companies.

“Operationally, the current quarter results are comparable to the previous year corresponding quarter results,” it said.

BCorp’s revenue slipped 1.3% to RM1.69 billion from RM1.72 billion while earnings per share were 0.52 sen compared with 1.97 sen.

It said group's gaming business and consumer marketing and distribution business recorded improved revenue. The gaming business recorded higher revenue despite having a lower number of draws in the current quarter.

“The group's innovative marketing initiatives in retail distribution, especially in Hong Kong and Macau, yielded substantial revenue growth,” it said.

BCrop said revenue was affected by the deconsolidation of Berjaya Sompo Insurance Bhd after the sale of 40% stake in the first quarter and the lower property sales registered by the property development business .

For the first half, its net profit rose 38.4% to RM293.54 million from RM212 million in the previous corresponding period mas mainly due to the exceptional gain recognised arising from the disposal of 40% stake in BSompo. Revenue edged up 0.6% to RM3.48 billion from RM3.46 billion.



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Berjaya Land sells 2.66m BToto shares at RM4.22 each

KUALA LUMPUR (Dec 20): BERJAYA LAND BHD [] disposed of 2.66 million shares of BERJAYA SPORTS TOTO BHD [] (BToto) in the open market on Dec 16 and 19.

BLand said in a statement to Bursa Malaysia on Tuesday the shares were disposed for RM11.22 million or at an average selling price of RM4.22 per share. The shares represented 0.20% of BToto’s issued and paid-up capital of 1.351 billion shares.

“The disposals were at prevailing market prices of BToto Shares at the time of the disposals. The disposed shares which were purchased since 1992, have a total carrying value of about RM12.74 million in the books of BLand group. The net proceeds from the disposals will be utilised as working capital and repayment of bank borrowings of the BLand Group,” it said.

Following the recent disposals, BLand and its unlisted subsidiaries now hold 560.158 million BToto shares representing 41.99% stake.

BERJAYA CORPORATION BHD [] and its unlisted subsidiaries also hold 142.79 million BToto shares or 10.70% stake.

With the disposals, the entire BCorp Group (including BLand group) own 702.948 million BToto shares or 52.69%.

BToto is a subsidiary of B-Land, which in turn is a listed subsidiary of BCorp. BCorp is the ultimate holding company of BToto.



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Bangkok Bank to move HQ to Golden Triangle

KUALA LUMPUR: Bangkok Bank Bhd, the Malaysian unit of Thailand’s largest commercial bank Bangkok Bank Pcl, has bought property units worth RM110 million from Berjaya Corp Bhd in its development at Jalan Ampang.

The bank entered into an agreement yesterday with Wangsa Tegap Sdn Bhd, a wholly-owned subsidiary of Berjaya Corp, for the purchase of eight levels of corporate suites and commercial spaces on the ground and mezzanine floors of the Berjaya Central Park development.

The eight levels of corporate suites, which occupy a total of 99,950 sq ft, will house Bangkok Bank’s new headquarters, while the ground and mezzanine floors covering an area of over 6,000 sq ft will house the banking halls. The units cost roughly RM1,100 per sq ft.

Bangkok Bank will move its headquarters from downtown KL to the 46-storey tower — to be named Menara Bangkok Bank, where it will be the anchor owner when the building is completed in 25 months, sometime in 1Q14.

Robert Loke, the executive director and CEO of Bangkok Bank, told the press that there are no plans yet to sell or lease out its current headquarters in Jalan Tun HS Lee, but all options will be explored. Bangkok bank commenced operations in Malaysia in 1959.

In the last 1½ years, Bangkok Bank has opened four new branches in Malaysia, said Loke. The new branches are located at Jalan Bakri, Muar, Taman Molek, Johor Baru, Penang Auto City, Penang, and Bandar Botanic, Klang, Selangor.

As part of its long-term expansion plans, the bank may open as many as four additional branches in the next four to five years, said Loke who could not provide specifics.

Federal Territories and Urban Wellbeing Minister Senator Datuk Raja Nong Chik Raja Zainal Abidin (left) and Berjaya Corp Bhd CEO Datuk Robin Tan looking at the scale model of Berjaya Central Park.

Loke said each branch costs RM1 to RM2 million to open, compared with the estimated cost of its new headquarters of at least RM110 million.

Loke declined to comment on whether Bangkok Bank is looking at opening branches in Sabah and Sarawak, but he noted that it has customers there.

Bangkok Bank has not been expanding as rapidly as the other foreign banks, but Loke said the new headquarters in the middle of the Golden Triangle will boost its prominence in Malaysia.

On the outlook for the banking sector, Loke said, “Malaysia is very robust. If you look at the 2008/09 crisis, we’ve managed to recover very well.

“Fortunately, we are quite insulated from the troubles in Europe and the US. However if Europe and the US do not manage the crisis well and things over there get much worse, we will still feel the effects.”

Loke’s outlook is optimistic but he noted, “There may be some impact in 2H12 due to lag.”

At the same event, Vinci-MHPT Consortium was awarded the building contract for the Berjaya Central Park development. The contract includes the podium and the Menara Bangkok Bank corporate suite tower and the structural framework for the residence tower.

Berjaya Corp has previously worked with Vinci-MHPT, the biggest construction firm in Europe, on the construction of Berjaya Times Square, Kuala Lumpur.

Michel Oliveres, chairman of the executive committee of Vince-MPHT, told the press conference that the basement carpark on which Berjaya Central Park will be built has already been modified to accommodate the development.

Each of the 37 floors of Menara Bangkok Bank has 13,100 sq ft of net lettable space, with the lower nine floors consisting of the podium and carpark levels.

Datuk Francis Ng, director of Wangsa Tegap, said that over 300,000 sq ft, excluding Bangkok Bank’s eight floors, have yet to be taken up and the minimum price per sq ft will be RM1,100.

Berjaya is hoping to secure an anchor tenant before it launches the remaining floor spaces, said Ng.

The residence tower is to be managed by the Ritz-Carlton. Ng said Berjaya Corp is awaiting internal layout designs from Ritz-Carlton, which may add 15 to 20 months to the development time of the residential towers.

He told press that the residence tower, which is the same height as Menara Bangkok Bank will have 48 floors in total instead and should fetch at least RM2,200 psf.


This article appeared in The Edge Financial Daily, December 6, 2011.



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Bangkok Bank to expand in Malaysia

Bangkok Bank Bhd aims to strengthen its presence in Malaysia by opening another four branches in the country by 2016, says chief executive officer Robert Loke.

He said the new branches will cost about RM1 million to RM2 million each, depending on location and size. "We currently have four branches outside Kuala Lumpur, including two in Johor, one in Penang and the latest one in Klang, Selangor.

"We do not have a branch in East Malaysia, therefore we are also looking at that possibility," he told reporters after the signing ceremony between Bangkok Bank and Wangsa Tegap Sdn Bhd, a unit of Berjaya Corporation Bhd.

The signing was witnessed by Minister of Federal Territories and Urban Well-being, Datuk Raja Nong Chik Raja Zainal Abidin.

The agreement is for the purchase by Bangkok Bank of eight levels of corporate suites together with the commercial space on the ground and mezzanine floors of one of the towers in Berjaya Central Park.

Asked on Bangkok Bank's newest investment, Loke said the bank was eagerly waiting for the right moment to invest in a new headquarters, adding the infrastructure and planning of the buildings in Berjaya Central Park was just fine.

Asked whether the bank will sell its present headquarters in Masjid Jamek, Kuala Lumpur, Loke said: "We are exploring all possibilities and everything is very much still up in the air."

He said the bank is looking to move into its new headquarters by the first quarter of 2014.

Bangkok Bank is a wholly-owned subsidiary of Bangkok Bank Public Company Limited, the largest commercial bank in Thailand. -- Bernama



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Bangkok Bank in pact with Berjaya unit

Wangsa Tegap Sdn Bhd, a wholly-ownedsubsidiary of Berjaya Corporation Bhd, today signed a purchase agreement with Bangkok Bank Bhd for the bank to establish its headquarters here.

The agreement was for the purchase of eight levels of corporate suites,together with the commercial space at the ground and mezzanine floors of one of the towers named Menara Bangkok Bank @Berjaya Central Park.

"The eight levels of corporate suites, which occupy a total of 99,950 square feet, will form the bank's new headquarters, while the ground and mezzanine floors will house its banking halls," said Berjaya Corp chief executive officer Datuk Robin Tan Yeong Ching at the signing ceremony.

Berjaya Central Park is a mixed development project in the heart of Kuala Lumpur's Golden Triangle.

The signing ceremony was witnessed by Federal Territories and Urban Well-being Minister Datuk Raja Nong Chik Raja Zainal Abidin and Thailand's Ambassador to Malaysia Thana Duangratana.

"We are honoured by Bangkok Bank's decision to choose Berjaya Central Parkas its new corporate headquarters in Malaysia. "We warmly welcome Bangkok Bank as Berjaya Central Park's anchor owner and we are proud to have the name Menara Bangkok Bank for the building's 46-storey office tower," Tan said.

At the same event, Wangsa Tegap also signed an agreement with Vinci-MHPT Consortium for the award of the building contract to build Menara Bangkok Bank@Berjaya Central Park. The contract will cover construction of the podium block, corporate suite tower and the structure for the residence tower, and will extend over a 27-month construction period. -- Bernama



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Berjaya Central Park to house Bangkok Bank's new headquarters

KUALA LUMPUR (Dec 5): Bangkok Bank has inked an agreement with BERJAYA CORPORATION BHD [] to house its headquarters at Menara Bangkok Bank @ Berjaya Central Park.

In a statement Monday, Berjaya Corp said its wholly owned susidiary, Wangsa Tegap Sdn Bhd had signed an agreement with Bangkok Bank Bhd for the purchase of eight levels of corporate suites and commercial space on the ground and mezzanine floors of the tower.

The 99,950 sqf of corporate suites will house the group's new headquarters while the 6,000 sqf of commercial space will accomodate the group's banking halls.

Berjaya Corp said Wangsa Tegap had also signed an agreement awarding Vinci-MHPT Consortium the contract for the CONSTRUCTION [] of Menara Bangkok Bank @ Berjaya Central Park.

The construction of the podium block, a corporate suite tower and a residence tower would be over a period of 27 months, it said.

Vinci is the biggest construction firm in Europe with experience and expertise in building and civil engineering works, while MPHT MHPT, an associate of Hitachi Plant Technologies Limited, Japan, is known for its expertise in elevator, air-conditioning, plumbing, fire protection systems and services.



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Eco Palm to invest RM820m in Pahang plant

Eco Palm Paper Sdn Bhd, a recycling based company, expects to invest RM820 million to set up a three-phase corrugated paper plant in Pekan, Pahang.

Managing Director Larry Yong said the company expects to see an annual revenue of RM875 million once the plant is fully completed by 2017.

"First phase of the plant will be completed in 2013 and 50,000 metric tonnes of paper will be produced annually," Yong told reporters before a contract signing ceremony with Jiangsu Jinwo Machinery Co Ltd here today. Berjaya Corp Bhd is the major shareholder of Eco Palm.

On the market for corrugated paper, Yong said it was expected to do well as it was an emerging market segment as there was a large demand for paper made from palm fiber.

He said among the major markets for the paper included Austalia, Japan and Europe, where the environmental regulations in the packaging industry were becoming more strict.

On the contract with Jiangsu Jinwo, he said Eco Palm signed the contract for RM65 million for them to design, manufacture and commission the corrugated paper plant.

He also said the plant, once completed, will raise the profile of Pekan as a production centre for tree-free paper while providing employment and training opportunities for the locals.

"It will also help reduce the depletion of natural resources and at the same time provide a clean solution for the disposal of palm oil by-products as approximately 18 million metric tonnes of empty fruit brunches are produced annually in Malaysia," he added.

Yong represented Eco Palm at the signing ceremony today while Jiangsu Jinwo was represented by its general manager, Fan Ganghua.

The event was witnessed by Pahang Menteri Besar Datuk Seri Adnan Yaakob and Berjaya Corp Bhd Chairman Tan Sri Vincent Tan.

In his speech earlier, Tan said the decision to invest in the project was influenced by the urgent need to move away from the traditional paper production process that uses wood based pulp.

"One of the major issues faced by the global pulp and paper industry is the diminishing supply of wood based pulp and the negative environmental effects of deforestation.

"It is therefore timely for Eco Palm to be able to fill the supply gap left by years of tree harvesting and at the same time help conserve our natural resources and environment," he said. -- Bernama



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