Mah Sing to expand into Penang soon

Mah Sing to expand into Penang soon

By YVONNE TAN

KUALA LUMPUR: Mah Sing Group Bhd is looking to spread its wings to Penang where a project could materialise within two years, said group managing director and group chief executive Datuk Leong Hoy Kum.

“We look at land banks (in Penang) almost everyday,” he said after the signing of an underwriting agreement with MIMB Investment Bank Bhd, its adviser and underwriter, and co-underwriter Hwang-DBS Investment Bank Bhd.

Leong said the company’s focus would be on medium- to high-end landed residential properties as these properties were “quite scarce” in Penang.

The underwriting agreement was for Mah Sing's corporate exercise involving a rights issue, share split and bonus issue, targeted for completion by June.

Mah Sing had proposed a one-for-four renounceable rights issue of up to 53.04 million shares at an issue price of RM3.30 per share, a subdivision of its RM1 share into two 50 sen shares and a subsequent one-for-five bonus issue of up to 106.08 million shares.

The rights issue would be undertaken by the company’s substantial shareholders, Leong and Koperasi Permodalan Felda Bhd.

The remaining open portion will be fully underwritten by MIMB and Hwang-DBS.

From left: MIMB Investment Bank CEO and executive director Mohamad Farid Nawawi, Mah Sing group chairman Tan Sri Yaacob Mat Zain, Datuk Leong Hoy Kum and Hwang-DBS Investment Bank MD Kevin Wong at the agreement signing ceremony.
Together with the private placement of 15.2 million new shares that was completed in February, Leong said the exercise would raise a total of RM227.63mil, allowing Mah Sing to strengthen its financial base and fund projects.

Meanwhile, he said Mah Sing had 12 projects in the Klang Valley and Johor Baru, with remaining gross development value (GDV) totalling RM2.2bil, which will last up to five years.

Of the total GDV, RM1.75bil would come from seven projects to be launched this year, and the remaining RM474mil from existing projects, he added.

Mah Sing’s unbilled sales as at Dec 31, 2006 totalled RM423mil.

“We are also looking more at the commercial segment as the current (commercial property market) is bullish, with demand from foreigners picking up,” Leong said.

On possible overseas ventures, he said several parties from India, Vietnam, China and Indonesia had expressed interest in working with Mah Sing.

Asked whether the company was looking to dispose of its plastics business, Leong said: “It makes sense to unlock (the value of) non-core assets.”

He said that while there was no decision yet, Mah Sing was in discussions with several parties.

“There is no hurry as it (the plastics business) is still generating revenue,” he added.