BLand: Hibernation Mode for Now

Berjaya Land Berhad (BLand) will be the counter in the Berjaya Group stable to watch as it has really gone no where in 2010.

If the BJToto counter is really privatised, then BLand will be the direct owner of the number forecast gaming company that owns about close to 40% of the NFO in Malaysia. Then it will be going places.

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Let us look at some of the development or sadly non-development of BLand.

The first project held in long hibernation relates to the

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(1) Proposed acquisition of about 244.79 acres of leasehold land located in Sungai Besi (“Sungai Besi Land”) together with all existing buildings and structures erected thereon by Selat Makmur Sdn Bhd ("SMSB"), a 100%-owned subsidiary of Bland, from Selangor Turf Club (“STC”) for a total consideration of RM640.0 million ("proposed acquisition of Sungai Besi Land"); and (2) Proposed acquisition of about 750.0 acres of freehold land located in Sungai Tinggi (“Sungai Tinggi Land”) by SMSB from Berjayacity Sdn Bhd (“BCSB”) and the proposed appointment of BCSB as the turnkey contractor to carry out the construction of the new turf club for a total consideration of RM605.0 million (“proposed acquisition of Sungai Tinggi Land”) Both of these are collectively referred to as the “proposals” And now what is the status?

For starters, the Board of Directors of BLand ("Board") wishes to announce that STC has officially notified SMSB via a letter dated 27 December 2010 granting a further extension of time from 19 January 2011 to 18 January 2012 to fulfill the conditions precedent pursuant to the Proposed Acquisition of Sungai Besi Land. Details of the conditions precedent which have yet to be fulfilled as announced on 16 August 2010 are as follows:- (a) renewal of consent by Land and Mines Department (Federal) for the transfer to SMSB of the portion of Sungai Besi Land (held under H.S.(D) 61790 No. P.T. 2872 in the Mukim of Petaling, District and State of Wilayah Persekutuan) that resides in Wilayah Persekutuan Kuala Lumpur which had expired on 11 January 2006; (b) agreement being reached between STC and SMSB on the layout plans, building plans, designs, drawings and specifications for the New Turf Club. Pending the fulfillment of Item (c) below, STC and SMSB have not finalized the layout plans, building plans, designs, drawings and specifications for the New Turf Club; and (c) the approval, permit or consent of any other relevant authorities as may be required by applicable laws include inter-alia the following:-   (i)                approval from the Town and Country Planning Department of the State of Selangor on the re-tabling of the amended master layout plan which was re-submitted on 19 August 2008; (ii) approval from the Majlis Daerah Hulu Selangor for the Development Order, earthworks and infrastructure and building plan pertaining to the construction of the New Turf Club after approval under Item (c) (i) above is obtained; and (iii) approval from the State Exco of Selangor for the conversion and sub-division of Sungai Tinggi Land after approvals under Item (c) (i) and (ii) above are obtained. Now let us move on the next project. Proposed Development of a of a resort-type residential & commercial complex in Yerae-Dong, Seogwipo-Si, Jeju special self-governing province ("project ") Berjaya Jeju Resort Limited, the joint-venture company undertaking the of Jeju’s Casino Resort Project has yet to obtain the casino licence. The issuance of the casino licence is conditional upon, inter-alia, completion of the construction of the hotel. The proposed full-fledged casino will be housed in the hotel which forms part of the Project development.   This is the latest up-date. Not very promising,yah?

JAKS is Jumping Up Again

As I see it, the so called bad days are just about over for JAKS.

The sad-bad years where it was cheated out of the profitable re-piping project in Selangor may just be turning good in 2010 and beyond. The court case for arbitration is still on and JAKS may see some retribution here soon as well.

Apart from winning the UTAR Section 17 campus renovation project and a portion of the Pahang-Selangor Water Transfer Project, it has got another project.

Its wholly-owned subsidiary, JAKS Sdn Bhd (JSB) has now secured a RM201 million construction contract for the earthworks, retaining wall, piling works and sub-structure works for the proposed commercial development of Phase 1-5 Commercial Block of 15 storey and 4 storey basement at Lot 59215 (PM55) and 59216 (PN8025), Jalan PJU 1A/4, Ara Damansara, Petaling Jaya, Selangor Darul Ehsan (“Contract”) from MNH Global Assets Management Sdn Bhd.

The Contract is expected to be completed by March 2012 and is expected to improve the future earnings of the JAKS Group.

None of the Directors or Major Shareholders of JAKS and persons connected with them has any interest, direct or indirect, in the Contract save that MNH Global Assets Management Sdn Bhd is wholly owned by Island Circle Development (M) Sdn Bhd (ICDSB), a major shareholder of JAKS Island Circle Sdn Bhd (“JIC”), which is 51%-owned by JSB and 49%-owned by ICDSB.

For now, JAKS performance has improved. The latest set of quarterly results for 2010 is absolutely pleasing to the eyes.

Year on year up to 31 October 2010, the comparisons of the figures  are exponential.

For full year accounting, profit before tax for current 2010 is RM4.439 million as compared to a loss in 2001 of RM2.430 million. Profit after tax amounts to RM2.38 million as compared to a loss of RM6.386 million in 2009. The basic earning has improved to 0.52 sen as compared to a loss of 1.54 sen last year.

Compared to the equivalent preceding quarter in 2009, PBT is now RM85.742 million as compared to RM62,313 million in 2009. Profit is now at RM2.530 million as compared to a loss of RM580,000 last year. Basic earning per unit has moved up to 27 sen as compared to negative 71 sen in 2009.

So,looks like 2011 may become one great year for JAKS if all the pieces fell into place.

So,watch the counter.

Wilmar Latest 2010 Corporate Adventure in China

Yes,Wilmar has joined its sister companies Shangri-la and Kerry to bid for China sites.

Wilmar International, the world’s largest listed palm oil firm, said as the eve of the New Year 2011 that it will submit a joint bid to buy the land use rights for six sites in China’s northern province of Liaoning.

Wilmar will partner Kerry Properties and Shangri-la Asia, two firms linked to Malaysian billionaire Robert Kuok, in the bid.

Wilmar, controlled by Kuok’s nephew, earlier this month bought land in Liaoning in partnership with Kerry and Shangri-la, sparking a sell-off in its shares as investors questioned why an agricultural firm was diversifying into property.

So, what do you think?

Is this diversification natural?

Is there really no synergy?

I think the sell-out is just an over reaction.......

A Brand New Year-2011

The old year has gone, in is the New Year.

For me, I had my ups and downs. On reflections there were more ups then downs.

For the downs, I accept it in good faith and pile it on to experience.

God has been kind to me and my family in 2010. I uphold his Holy Name.

Praise the Lord!

Happy New Year!!