KEURO ... Jul10

It aims for a turnaround in business in 2012 as the 1,012-hectare Canal City project to be jointly developed with IJM Land Bhd takes off.

The 50:50 joint venture company for the development is Radiant Pillar Sdn Bhd. A supplementary agreement for it has been sealed.

Sales for the project near the Kota Kemuning township, will start sometime next year (2011) and due to the new accounting standards, it can take it into account for the 2012 financial year.

The project, with a more than RM10 billion gross development value (GDV) and to be developed over 15 to 20 years, is the company’s sole focus for now.

For the first quarter ended April 30, 2010, K-Euro slipped into a RM3.129 million pre-tax loss from a RM62,000 pre-tax profit in the same quarter previously. Turnover also dropped to RM8.841 million from RM9.85 million previously.

Its shareholders approved the proposal to dispose of 700 million Talam shares, to generate RM90.863 million that will be utilised to repay bank borrowings and savings in interest of about RM2.2 million.

The group’s total bank borrowing as at March 31, 2010, amounted to RM260 million.

Upon full payment to Abrar Discounts Bhd (Abrar) for the Talam financial instruments and conversion of it to a voting share in Talam, K-Euro will be able to enhance its controlling stake in the company.

Assuming completion of the proposed disposal and upon full conversion of all outstanding Talam convertible financial instruments as at June 24, 2010, the equity interest of K-Euro in the latter will increase to 32.8 per cent from 26.51 per cent at present