RM7.07B West Coast Expressway Expected To Be Signed Soon; KEuro An agreement is expected to be signed soon by Kumpulan Europlus (KEuro) as it proceeds with the final round of discussions with the authorities to build the RM7.07 billion West Coast Expressway. The expressway’s construction will span across the 316km route from Banting to Taiping and is expected to take five years to complete. It noted that the toll revenue in excess of an agreed traffic volume would be shared on a 70:30 basis between the Government and West Coast Expressway until the full settlement of the loan, after which the ratio would be adjusted to 30:70. The acquisition cost for the land of approximately RM980 million will be borne by the government. The company has a 64.2 percent stake in the West Coast Expressway.
Significance: The West Coast Expressway is expected to contribute to the group’s revenue and profit from FY2014 onwards. The majority stake in West Coast Expressway after the full settlement of loan to the government will entail KEuro to a healthy stream of toll revenue when the profit sharing ratio reverts back to the 70 percent it’s entitled to.
this whole activity seems to be terribly politicised....next we may have to read tea leaves. Has become silly for IJM....Ijm may have lost its moral compass
MWE Holdings Bhd is boosting its stake in Kumpulan Europlus Bhd to 27.14% by acquiring 115.40 million shares for RM1.35 each as it seeks exposure to KEuro's projects, especially the 233km West Coast Expressway.
Public investment is expected to reach RM106bil in 2014 Budget. Projects to be implemented: West Coast Expressway from Banting-Taiping (316KM); Double-tracking projects Ipoh-Padang Besar & Gemas-JB. In the oil & gas sector, among projects to be undertaken by Petronas include the Sabah Ammonia Urea Project (SAMUR) in Sipitang.
Projects to be implemented include 316-kilometre West Coast Expressway from Banting to Taiping as well as double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Baru.
Thestar July 12 KUALA LUMPUR: MWE Holdings Bhd is boosting its stake in Kumpulan Europlus Bhd to 27.14% by acquiring 115.40 million shares for RM1.35 each as it seeks exposure to KEuro's projects, especially the 233km West Coast Expressway.
MWE said on Friday it had over the past two days bought 26 million KEuro shares for RM1.14 each via business transactions for a total of RM29.64mil.
Following these acquisitions, it then decided to up the stake by proposing to acquire another 22.15% stake or 115.40 million shares for RM155.79mil or RM1.35 each from Tan Sri Chan Ah Chye @ Chan Chong Yoon and Sze Choon Holdings Sdn Bhd.
Kumpulan Euro, through its 80% owned WestCoast Expressway Sdn Bhd, had on Jan 2, 2013 signed a concession agreement with the government of Malaysia for the West Coast Expressway project.
The 233km West Coast Expressway comprises of 233km of tolled highway (including 40km of highway to be constructed later) from Banting, Selangor to Taiping, Perak. The project is a build-operate-transfer (BOT) project with a concession period of up to a maximum of 60 years.
MWE said its core business was manufacturing and sale of garments, as well as leasing out textile factory to third party. However, its business saw a 10.99% decline in revenue from RM184.85mil for FY ended Dec 31, 2011 to RM164.53mil in FY 2013.
It said the lower revenue was mainly due to the weakening demand from the US and European markets. It expected continuing volatility and weak demand from both the said markets in the near future.
MWE said the proposed acquisition of the KEuro stake would enable it to equity account the earnings of KEuro.
"The proposed acquisition is expected to provide a steady source of earnings to MWE Group upon successful launches of Bandar Rimbayu township development and the completion of West Coast Expressway project.
"The board believes that KEuro will also be able to leverage on the expertise of IJM Corporation Bhd (which currently holds 22.96% equity interest in KEuro) and IJM Land (currently holds 50.00% equity interest in Radiant Pillar)," it said.
MWE said IJM Corp Bhd and its subsidiaries were established player in the civil engineering and property development industry with investments in infrastructure assets.
It expected KEuro to tap into IJM group's experience in project execution and management (in particular cost, quality and time management) in both property development and toll concessionaire businesses.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
TOMWAH
1,599 posts
Posted by TOMWAH > 2012-02-03 12:02 | Report Abuse
ya huu,,,gonna sell 1.55