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KUALA LUMPUR: KNM Group Bhd and Zecon Bhd are expected to generate trading interest are announcing plans for a massive...
KUALA LUMPUR: KNM GROUP BHD [] and ZECON BHD [] have inked heads of agreements with Gulf Asian Petroleum Sdn Bhd (GAP) to undertake projects worth an estimated RM17 billion at Teluk Ramunia, Johor.
In a filing Monday, July 25, KNM said the agreements were to undertake building a 150,000/200,000 bpd petroleum refinery and 400,000/525,000 mtpa polypropylene unit for GAP with a total project value of US$5 billion (RM15 billion).
The other project is to construct a petroleum product storage terminal facility comprising four terminals with a total storage capacity of 2.328 million cubic meters, with supporting infrastructure and auxiliaries worth RM2 billion.
For the refinery project, KNM said it would together with Zecon and/or a Korea or Chinese contractor form a consortium to undertake the refinery project.
KNM said the consortium would take up to 20% equity in GAP estimated at US$180 million (RM540 million), adding that the project would be funded by 30% equity and the balance via project financing using export credit agencies and/or other financial instruments including Sukuk issuance.
The project would be completed within 40 months from financial close, it said.
As for the RM2 billion storage project, KNM said it would form a consortium with Zecon to carry out the job.
KNM said the a special purpose vehicle would undertake the project, adding that it would subscribe up to 30% equity in the SPV, while the balance would be held by GAP.
KNM and GAP will form a joint venture company to undertake the operation and maintenance of the facilities upon completion for period of 25 years with the first five years having a reputable operator as its partner, it said.
The storage project will be completed within 18 months after financial close, it said.
KNM said GAP would arrange for financial guarantee from a local investment fund for up to RM1.5 billion during the CONSTRUCTION [] period to be converted into long term loan thereafter and a facilitation fund of up to RM300 million while KNM will arrange a Sukuk issuance of up to RM1.5 billion to cover project financing during construction.
“The Johor State Government has approved 650 acres of land in Teluk Ramunia for the Projects and GAP is in discussion with the State Government for its equity participation which has yet to be finalised.KUALA LUMPUR: Ivory PROPERTIES [] Bhd, which has been lying low in recent months after its listing, could be back on the investors’ radar screen after it got the approval to undertake a mixed development spread 102.56 acres on Penang island.
The company said on Monday, July 25 that Penang Development Corporation (PDC) had approved the purchase and development of the land in Bayan Mutiara, near the Penang Bridge.
Of the 102.56 acres, it said 67.56 acres are existing land and 35 acres are to be reclaimed for a proposed mixed development.
The site is at the coast way of the Tun Dr Lim Chong Eu Expressway to the north of Techware Sdn Bhd’s Gold Coast Development.
KUALA LUMPUR: DAYA MATERIALS BHD [] has secured two contracts valued a total of 6.46m euros (RM27.64 million) to supply and deliver catalysts to Petronas Methanol (Labuan) Sdn. Bhd.
It said on Monday, July 25 that its unit Daya Secadyme Sdn Bhd has signed two supply and delivery agreements with Petronas Methanol after a competitive bidding.
The agreements are to supply methanol synthesis catalyst and desulphurisation catalyst to Petronas Methanol for about 6.46 million euros.
The methanol synthesis catalyst will be delivered by November 2011 and the desulphurisation catalyst by September 2011.
“These agreements further strengthen Daya Materials’ position as a prominent supplier of catalysts to the oil and gas, petrochemical and refining industries in Malaysia,” it said.
KUALA LUMPUT: DIGISTAR CORPORATION BHD [] has secured new orders totaling RM8.8 million to supply and integrate various audio-visual, hospital communication system and other electronic and electrical systems.
“The delivery period of these orders are ranging from one month to 18 months. These orders are not recurring or renewable in nature,” Digistar said on Monday, July 25.
It said these orders would have a positive effect on Digistar group's net Asset for the financial year ending Sept 30, 2011 and 2012.
KUALA LUMPUR: SP SETIA BHD [] is taking full control of KL Eco City Sdn Bhd with the proposed acquisition of the remaining 40% stake for RM75 million via a share swap.
It said on Monday, July 25 it would issue 19.379 million new SP Setia shares at RM3.87 each to Yayasan Gerakbakti Kebangsaan (YGK),
Currently, KLEC is 60% owned by SP Setia. Upon completion of the proposed acquisition, KLEC will become a unit of SP Setia.
SP Setia said the purchase consideration of RM75 million was based on the equity valuation of KLEC using the discounted cash flow method of valuation.
This took into account the approved development order for the stratified mixed residential and commercial developments of the project known as KL Eco City Project and the terms of the privatisation agreement to be entered into between KLEC and Datuk Bandar Kuala Lumpur for the KL Eco City project.
The company and YGK had appointed CIMB Investment Bank Bhd to appraise the equity value of KLEC based on the financial forecasts and projections prepared by the management of KLEC.
“Based on the valuation report by CIMB dated July 1, 2011, the valuation of 40% equity interest in KLEC ranges between RM53 million and RM73 million.
“The premium of the purchase price to the above valuation reflects the board’s confidence in the prospects of the KL Eco City project,” it said.
The KL Eco City Project is an integrated commercial and residential development. The development was master planned by Jerde Partnership, an international award-winning architect and master planner well-known for integrated mixed-use commercial and residential developments.
SP Setia said the development’s key advantages are its strategic location near the affluent Bangsar area and its connectivity to key roads, highways, the KTM Commuter and the LRT Kelana Jaya lines.