Sri Hartamas revamp to be completed by September

  • Business
  • Wednesday, 25 Jun 2003


FACB Resorts Bhd, the white knight to the rescue of indebted Sri Hartamas Bhd, hopes to finally complete the latter’s restructuring by September and have a new subsidiary assume its listed status on the KLSE main board.  

This in turn would help FACB return to profitability “within the next 2-3 years”, said its chief operating officer Eric Tay.  

He said that on completion of the rescue exercise which began in May 2001, FACB would have received 660 million shares or a 78% stake in Hartamas Group Bhd (HGB), which would be listed in place of Sri Hartamas. FACB would later reduce that stake to 75% or less to meet the Securities Commission (SC) guidelines on public shareholding spread.  

As part of the scheme, FACB would also have injected two major assets,a beachfront project in Sabah known as Nexus Resort Karambunai and a 1,363-acre development near Putrajaya called Bukit Unggul Eco-Media City, with a total value of RM660mil into the new company, he added. 

Tay told reporters this after FACB’s EGM yesterday during which shareholders approved the company’s participation in the rescue of Sri Hartamas.  

The exercise had also been ap- proved by the SC, Pengurusan Danaharta Bhd and the creditors of Sri Hartamas, he said.  

Tay said the exercise would allow the group to be better focused, with FACB involved in leisure and tourism, and HGB concentrating primarily on property development.  

The completion of the exercise will also enable FACB to take advantage of the liquidity and marketability of the quoted HGB securities to part-finance the development of projects as well as save interest expenses by repaying some of the FACB group’s existing borrowings of some RM450mil.  

FACB’s business plans have been held back pending the completion of the exercise. The delay, in turn, has affected the group’s financial health. The group’s net loss of RM76mil for the year ended March 31, 2003, was substantially due to interest costs of some RM40mil.  

In its circular to shareholders, meanwhile, FACB said the Sri Hartamas rescue scheme would result in a one-off charge of between RM117mil and RM121mil on the group's current earnings, while HGB would incur a one-off charge of RM151mil.  

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Business News

Teladan Setia posts net profit of RM7.1mil in 1Q
Taiwan stock crash shows world dangers of too much leverage
Philippine cenbank holds rates at record low to support pandemic-hit economy
Kerjaya Prospek announces changes in boardroom following mandatory takeover
Private equity firm to buy UDG Healthcare in US$3.7b deal
Zafrul: Keeping economy open during MCO 3.0 helps protect vulnerable, businesses
US removes Xiaomi from government blacklist
Kerjaya, E&O may consider merging in 5 to 10 years, chairman says
SoftBank posts US$37b Vision Fund profit, eyes further IPOs
US Dept of Justice remits RM1.9b of seized 1MDB funds to Malaysia

Stories You'll Enjoy