AMDB sees revamp completion before Hari Raya

Tags: AmcorpGroup Bhd | AMDB Bhd | Azmi Hashim | Ben Lee | J Walter Thompson Sdn Bhd | PTM Sdn Bhd | Restoran Seri Melayu Sdn Bhd | Sebana Holdings Sdn Bhd

Written by Loong Tse Min
Wednesday, 02 September 2009 23:55

KUALA LUMPUR: AMDB BHD [] expects to complete its restructuring exercise before the Hari Raya holidays, said its chief executive officer Ben Lee.

Speaking to reporters after the company's AGM here yesterday, he said following the completion of its restructuring, the company would be more focused as a property development group.

Going forward, the company would continue to dispose of non-core assets and replace them with assets of higher yield, said Lee.

Lee. Photo by Abdul Ghani Ismail
It sold Sebana Holdings Sdn Bhd, a golf resort and property management firm, during the financial year ended March 31, 2009 for a gain of RM18.3 million.

AMDB is also disposing of its units, Restoran Seri Melayu Sdn Bhd, RSM Catering And Management Services Sdn Bhd, Harpers Tours (Malaysia) Sdn Bhd, Harpers Travel (Malaysia) Sdn Bhd and a 49% stake in PTM Sdn Bhd that holds a 75% direct equity interest in advertising firm J Walter Thompson Sdn Bhd.

These interests are being sold to its holding company AmcorpGroup Bhd for RM22.1 million cash.

AMDB chairman Azmi Hashim said disposals would be made only if offers were attractive.

“It is no longer a question of cash flow now, it is more a matter of whether it makes sense and if the price is right. We have investments in associate companies where we have minority stakes. If someone makes us an offer for our stake, and the price is right, we will consider it,” he said.

AMDB's acquisitions during the restructuring have given the company two new ongoing projects — a 188-acre (76.08ha) bungalow development in Shah Alam, Selangor, known as Kayangan Heights and a 737-acre township development in Sibu Jaya, Sarawak.

The two projects are expected to have a gross development value of RM500 million each.

Kayangan Heights is expected to run for up to 10 years while Sibu Jaya may run for another 10 to 15 years, depending on the economic environment, Azmi said.

On overseas ventures, the company was exploring acquisitions of ongoing projects in global financial centres such as London or New York and Hong Kong, said Lee.

At present, AMDB still has an order book of RM100 million for jobs in Dubai.