The Terengganu government, via its investment arm and other units, has recently been increasing its stake in wood product manufacturer.
Terengganu Inc Sdn Bhd, the state’s investment arm, controlled 54% equity interest as at end March 2010. But since mid Aug 2010, Terengganu Inc has been buying Golden Pharos stock, upping its stake to 56.9%.
Another Terengganu government based outfit has also been mopping up shares in Golden Pharos. Lembaga Tabung Amanah Warisan Negeri Terengganu emerged as a substantial shareholder in Golden Pharos with 5% equity as at end June 2010. By July 2010, it had upped its stake to 11.2 million or an 8.3% stake. This means that Terengganu Inc and other state controlled entities now have about 65% equity interest in Golden Pharos.
Lemgaba Tabung Amanah Warisan Negeri Terengganu has a 10.3% stake in Ternegganu Inc.
What are plans for Golden Pharos remain unclear, It is however, perplexing because Golden Pharos is a loss making company at present. Over the past 16 years it has posted eight years of profit and an equal amount of losses, meaning earnings can erratic.
However judging by what the company says in its notes, things could pickup at Golden Pharos. It says “Internal log production and mixed stream activities are expected to improve in the coming quarter as weather condition improve. The board is cautious, as the market condition continues to be challenging despite the improvement in log production in the coming period.
The group will focus on strengthening Golden Pharos’ position in the global market and aims to improve the operational efficiency of its core business. Barring unforeseen circumstances, the board expects the performance for 3Q2010 to be better”.
It had a net asset per share of 51 sen.
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