Ramunia ... Jan10

LTH is set to play a major role in Ramunia Holdings Bhd’s restructuring exercise, which could transform the latter into a major infrastructure group.

Sources say TH Technologies Sdn Bhd could be injected into the fabrication company as part of the restructuring exercise.

TH Technologies is wholly owned by Tabung Haji, which is currently the single largest shareholder in Ramunia with a 29.7% stake.

TH Technologies has just commenced its oil and gas support services with the delivery of its first deep sea anchor handling tug in Jan 2010. A second vessel is due to be delivery in Feb 2010. The company is also involved in the management of infra and building projects.

The company also has a 28% stake in Roadcare (M) Sdn Bhd, which has a 15 year concession that ends in 2016 to maintain federal roads in Selangor, Pahang, Terengganu and Kelantan.

Ramunia is proposing to hive off its fabrication yard business in Teluk Ramunia, Johor to Sime Engineering Bhd – a unit of Sime Darby Bhd – for RM530 million cash. The company will be holding an EGM on 12 Jan 2010 to obtain shareholders’ approval.

The deal to take over TH Technologies is still at the proposal stage and the acquisition could be satisfied by either cash or shares or a combination of both.

TH Technologies mainstay is in infrastructure concessions and the provision of venture capital management exercise. The company recently appointed well known property veteran Datuk Johan Ariffin as a director in Aug 2009. Johan was previously MD of TTDI Development Sdn Bhd, a unit of NAZA Group.

TH Technologies had non-current assets amounted to RM68.1 million and current assets valued at about RM62.9 million as at end Dec 2008, while current liabilities amounted to RM30.2 million.

For Ramunia, the restructuring exercise, involving RM530 million cash, would boost its cash and cash balances. At end Oct 2009 the fabricator had cash of Rm24.7 million and fixed deposits of rm659.5 million.

Ramunia’s balance sheet shows accumulated losses of RM325 million, borrowings of RM174 million and other payables of RM138.9 million. For FY2009 ended Oct 31, Ramunia incurred a net loss of RM50.2 million.
It was reported that LTH had invested about RM235 million to acquire the Ramunia shares, but the stake is now worth some RM86 million based on 43.5 sen.

Datuk Azizul Rahman Abd Samad owns 25.2% in the company.

The focus is now on Tabung Haji turning around Ramunia in the event the TH Technologies injection materialises.