Followers

Friday 3 February 2012

Tebrau focused on Johor

The land is to be a comprehensive mixed development that complements Petroliam Nasional Bhd's RM60.8 billion refinery and petrochemicals integrated development there. Tham said since Lim is also a controlling owner of Danga Bay Sdn Bhd (DBSB), IWH can benefit from any plans the businessman has for his Danga Bay waterfront development in Johor Baru. "So there might be potential upside and synergy from there (the Danga Bay development). Tebrau is apparently very focused on Johor," he added. Lim currently owns 70 per cent of DBSB via Credence Resources. On the other hand, KPRJ owns 30 per cent of DBSB. Meanwhile, OSK Research, in its recent technical analysis, said Tebrau's share price may trade higher after the highest close in months. The price target is 85 sen, the high of November 2010 and April 2011, and thereafter 90 sen, the high of late-February 2011. Both were Fibonacci levels of the measured move based on the September-November 2011 rally, the research firm explained.

Additionally, Tebrau's share price is now markedly above the offer price of 76 sen per share made by businessman Datuk Lim Kang Hoo and partners via Iskandar Waterfront Holdings Sdn Bhd (IWH). The stock surged 9.3 per cent to close at 82 sen yesterday, its largest gain since January 13 last year. It was the second most active counter with 61.78 million shares traded. An analyst said the offer price seemed reasonable at the time the privatisation offer was made. But based on yesterday's strong closing and the potential for further gains, the analyst felt the offer price was no longer reasonable. This will likely lead to minority shareholders keeping their shares to "take part" in Tebrau's bright prospects. Mercury Securities Sdn Bhd said Tebrau's new large scale project in Pengerang, Johor, has a substantial potential earnings upside. Its head of research Edmund Tham told Business Times that at the moment, there is no value put on the mixed land development project. IWH, early this week, announced that it was buying a 33.15 per cent stake in Tebrau from Kumpulan Prasarana Rakyat Johor (KPRJ) for 76 sen each or about RM168 million. This has triggered a general offer for the remaining Tebrau shares not already owned by IWH, which had agreed to pay a similar 76 sen each for the shares. KPRJ is Johor's state investment arm, which currently owns a direct 41.15 per cent stake in Tebrau. On the same day of the privatisation announcement, Tebrau said the Johor government had awarded it a rights to develop 161ha of land in Pengerang The land is to be a comprehensive mixed development that complements Petroliam Nasional Bhd's RM60.8 billion refinery and petrochemicals integrated development there. Tham said since Lim is also a controlling owner of Danga Bay Sdn Bhd (DBSB), IWH can benefit from any plans the businessman has for his Danga Bay waterfront development in Johor Baru. "So there might be potential upside and synergy from there (the Danga Bay development). Tebrau is apparently very focused on Johor," he added. Lim currently owns 70 per cent of DBSB via Credence Resources. On the other hand, KPRJ owns 30 per cent of DBSB. Meanwhile, OSK Research, in its recent technical analysis, said Tebrau's share price may trade higher after the highest close in months. The price target is 85 sen, the high of November 2010 and April 2011, and thereafter 90 sen, the high of late-February 2011. Both were Fibonacci levels of the measured move based on the September-November 2011 rally, the research firm explained.


By Bilqis Bahari

No comments: