KUALA LUMPUR (Jan 12): Based on corporate announcements and news flow today, companies in focus on Monday (Jan 15) may include: AirAsia X Bhd, AirAsia…
PETALING JAYA: Paramount Corp Bhd is buying a piece of freehold residential land measuring approximately 41.406 acres in Cyberjaya, Selangor for RM149.7 million to embark on a property project with a gross development value (GDV) of RM570 million.
In a Bursa Malaysia filing, Paramount said its wholly-owned subsidiary Paramount Property (Lakeside) Sdn Bhd has entered into a sale and purchase agreement (SPA) with Makmur Asiamaju Sdn Bhd (MASB), which is in the business of property development, for the proposed acquisition.
Paramount said the land has been approved for a stratified landed residential development, comprising 418 residential units pursuant to a development order dated Feb 24, 2014 granted by Majlis Perbandaran Sepang to MASB.
With a projected RM570 million GDV to be generated from this development over a period of six years, Paramount said the proposed acquisition will further strengthen the group's current total GDV of RM8.6 billion and contribute positively to its future earnings.
Furthermore, the group said the acquisition is in line with its strategy of replenishing its land bank at locations with strong growth potential and to scale up its property development activities to generate long-term sustainable income.
Barring any unforeseen circumstances, it said the proposed development is expected to commence next year, while the proposed acquisition is expected to be completed within nine months from the date of the SPA.
The purchase consideration will be funded through a combination of internally generated funds and bank borrowings.
Paramount closed four sen or 2.13% higher at RM1.92 with some 363,500 shares traded.
WASHINGTON: The global economy is set to expand by 3.1 per cent in 2018, slightly up from 3 per cent last year and marking the first year since the 2008 Great Recession that it will near or achieve full growth potential, the World Bank said. In an update of its twice-yearly economic report, the World […]
SINGAPORE: Malaysia-based AirAsia Bhd is considering an initial public offering for its Indian unit and seeking a partner for its services business, the carrier’s group chief executive Tan Sri Tony Fernandes said today.
This is the latest in a series of asset monetisations being undertaken by the low-cost airline group, which this week received shareholders’ nod for a reorganisation to make AirAsia Group Bhd the listed holding company for assets across Asia.
AirAsia has already completed a backdoor listing of Indonesia AirAsia TBK PT and finalised a S$119.3 million (RM358.1 million) joint venture for its ground-handling business with Singapore’s SATS Ltd. Its Philippine unit is looking to raise up to US$250 million via an IPO in mid-2018.
AirAsia will seek approval at the next AirAsia India board meeting to pick a banker to start a preliminary process for an IPO, Fernandes posted on Twitter today.
While analysts are “giving zero value to AirAsia India”, the unit is a “very valuable asset with huge growth potential”, he said in separate tweets, adding the subsidiary “was not far from 20 planes and a potential IPO”.
According to Indian regulations, airlines need to have a fleet of at least 20 aircraft to fly on international routes.
AirAsia India, a joint venture with India’s Tata Sons conglomerate, had 14 planes at end-2017. Its revenue last year was expected to double to 12 billion rupees (RM754.9 million) and climb to 18 billion rupees in 2018.
The fast-growing Indian venture reported a net loss of 164 million rupees in the quarter ended September, according to AirAsia’s latest accounts.
“AirAsia India is still incurring start-up losses and in negative equity so it is challenging to ascribe much value to the business at this point,” said Corrine Png, the CEO of transport research firm Crucial Perspective.
However, she said if the Indian venture grew its fleet to 20 and turned profitable, AirAsia’s 49% stake could be worth US$200 million based on listed Indian airline rivals. – Reuters
KUALA LUMPUR, Jan 10 — Malaysia-based carrier AirAsia Bhd’s India unit is looking at a potential initial public offering, the group’s chief executive, Tan Sri Tony Fernandes, said this morning. The company will seek approval at AirAsia…