Bina Puri Holdings Bhd is set to emerge as the largest shareholder in beleaguered Oriented Media Group Bhd (OMedia) with equity interest of at least 60% in exchange for its polyol manufacturing business and power assets in Indonesia.
The reverse takeover (RTO) exercise, which is expected to be completed by late August 2011, will enable Bina Puri to focus on its core business of construction and expand its property arm while maintaining the listing status of its non-core assets.
OMedia intends to acquire Bina Puri’s Maskimi Polyol Sdn Bhd, which manufactures polyol, and Bina Puri Mining Ventures Sdn Bhd, which holds an 80% stake in Indonesia-based PT Megapower Makmur. Megapower operates two concessionary diesel-based power plants with a total output capacity of 2MW each.
The polyol manufacturing segment posted a loss before tax of RM216,000 for the third quarter ended Sept 30 versus profit before tax of RM192,000 a year ago.
In August 2010, Bina Puri acquired an 80% stake in Indonesia-based power plant owner and operator PT Megapower Makmur for RM807,581 to expand its exposure in electricity-generation projects overseas to establish a larger recurring income base.
Meanwhile, Bina Puri would breach the RM1 billion revenue mark for its financial year ended Dec 31, 2010 (FY10) mainly on the back of more construction jobs secured during the year.
Its current unbilled work totaled RM2.6 billion, which will last them for the next three years.
Bina Puri’s ongoing jobs include the new Kuala Lumpur International Airport 2 construction works (RM997.2 million), LRT Ampang Line extension package five (RM702.4 million) and Eastern Dispersal Link Johor Bahru (RM293 million).
In addition, Bina Puri aims to expand its property arm in view of the higher profit margin it could fetch compared with its construction counterpart. It hopes to see the property division making up at least 20% or RM250 million of its revenue for FY11 and hopefully 50% in the next five years.
In the coming year, Bina Puri will be launching two property projects in Sabah namely Jesselton View and One Jesselton @ Kepayan with a total gross development value of RM141 million. In terms of its construction activities in the state, Bina Puri currently has RM686.83 million worth of ongoing jobs.
Notable projects the company has secured in Kota Kinabalu include the construction of Universiti Malaysia Sabah’s postgraduate centre (RM162 million) and shop offices in Alamesra (RM85 million).
Nonetheless, the company’s net gearing is relatively high. As at Sept 30, Bina Puri had long-term debts of RM229.26 million, short-term debt of RM1.43 million and RM49.30 million cash. Based on shareholders’ funds of RM105.65 million and net debt of RM181.39 million, Bina Puri’s net gearing stood at 171.69%.
Bina Puri intends to raise funds for working capital purposes going forward.
The reverse takeover (RTO) exercise, which is expected to be completed by late August 2011, will enable Bina Puri to focus on its core business of construction and expand its property arm while maintaining the listing status of its non-core assets.
OMedia intends to acquire Bina Puri’s Maskimi Polyol Sdn Bhd, which manufactures polyol, and Bina Puri Mining Ventures Sdn Bhd, which holds an 80% stake in Indonesia-based PT Megapower Makmur. Megapower operates two concessionary diesel-based power plants with a total output capacity of 2MW each.
The polyol manufacturing segment posted a loss before tax of RM216,000 for the third quarter ended Sept 30 versus profit before tax of RM192,000 a year ago.
In August 2010, Bina Puri acquired an 80% stake in Indonesia-based power plant owner and operator PT Megapower Makmur for RM807,581 to expand its exposure in electricity-generation projects overseas to establish a larger recurring income base.
Meanwhile, Bina Puri would breach the RM1 billion revenue mark for its financial year ended Dec 31, 2010 (FY10) mainly on the back of more construction jobs secured during the year.
Its current unbilled work totaled RM2.6 billion, which will last them for the next three years.
Bina Puri’s ongoing jobs include the new Kuala Lumpur International Airport 2 construction works (RM997.2 million), LRT Ampang Line extension package five (RM702.4 million) and Eastern Dispersal Link Johor Bahru (RM293 million).
In addition, Bina Puri aims to expand its property arm in view of the higher profit margin it could fetch compared with its construction counterpart. It hopes to see the property division making up at least 20% or RM250 million of its revenue for FY11 and hopefully 50% in the next five years.
In the coming year, Bina Puri will be launching two property projects in Sabah namely Jesselton View and One Jesselton @ Kepayan with a total gross development value of RM141 million. In terms of its construction activities in the state, Bina Puri currently has RM686.83 million worth of ongoing jobs.
Notable projects the company has secured in Kota Kinabalu include the construction of Universiti Malaysia Sabah’s postgraduate centre (RM162 million) and shop offices in Alamesra (RM85 million).
Nonetheless, the company’s net gearing is relatively high. As at Sept 30, Bina Puri had long-term debts of RM229.26 million, short-term debt of RM1.43 million and RM49.30 million cash. Based on shareholders’ funds of RM105.65 million and net debt of RM181.39 million, Bina Puri’s net gearing stood at 171.69%.
Bina Puri intends to raise funds for working capital purposes going forward.
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