IOI Corporation
Bhd (RM5.34/share)
Bumitama to list on
SGX
IOI Corp Bhd is set to register at least US$226.0mil
(RM696.0mil) or a 360.0% gain – on paper – from its investment in
Indonesia-based Bumitama Agri Ltd. The latter has just filed for an IPO on the
Singapore Exchange (SGX), which is said to fetch a market capitalisation of
between S$1.2bil and S$1.3bil (RM2.9bil and RM3.2bil).
According to a filing with Bursa, IOI acquired a 33.0% stake
in PT Bumitama Gunajaya Agro (BGA) in 2007 for US$62.6mil. After restructuring,
BGA was 90.0% owned by Bumitama, in which IOI now has a 36.0% stake. Its
holdings shall be diluted to 30.4% upon completion of the IPO, according to
Bumitama’s prospectus filed with the Monetary Authority of Singapore yesterday.
IOI has been providing plantation management services and
technical support to Bumitama since it acquired a stake in 2007. It is worth
noting that agribusiness giant Wilmar International Ltd is buying a small stake
in Bumitama via subscription of the IPO shares. This is its second share
purchase in an Indonesian palm oil firm after taking a 20.0% stake in Kencana
Agri Ltd in August 2010. – The Edge
Timber Sector
Japan boost for
plywood
Sarawak plywood manufacturers will benefit from an
anticipated stronger demand from Japan at the start of spring next month.
Sarawak Timber Association (STA) panel products’ committee chairman Wong Kai
Song said that new orders from Japan’s plywood importers had continued to flow
in since late last year.
Most Japanese importers halted or slowed down buying between
June and September last year due to high inventories. Their warehouses are
reportedly stocked up following aggressive buying in the April-June 2011
period, in anticipation of high utilisation of plywood when reconstruction and
restoration works started after the devastating earthquake and tsunami a year
ago. However, the overstock situation has been adjusted in recent months.
Japan increased its plywood imports from Sarawak by about
5.0% to 1.31 million cu m worth RM2.4bil last year, from 1.25 million cu m
valued at RM1.9bil in 2010.
Wong also said that Sarawak plywood was expected to
trade firmer at between US$500 and US$550 per cu m in the export market from
US$460 and US$500 per cu m now. - StarBiz
Source: AmeSecurities
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