Highlight Focal Aims is target of takeover

Highlight Focal Aims is target of takeover
Business & Markets 2013
Written by Staff Writer of theedgemalaysia.com
Tuesday, 17 September 2013 08:53

KUALA LUMPUR: The people behind emerging property group EcoWorld Development Sdn Bhd will be making a takeover of Johor-based listed developer FOCAL AIMS HOLDINGS BHD [].

Sources say Maple Quay Sdn Bhd, which has a 50% stake in EcoWorld, will make a conditional offer to buy 50% of Focal Aims from its major shareholders.

Focal Aims closed last Friday at 91 sen. Its market capitalisation is RM230 million and based on its 2012 annual report, the company had net assets per share of RM1.17. It made a pre-tax profit of RM8.1 million in 2012 on revenue of RM65.26 million.

Sources say the offer from Maple Quay will likely be higher than Focal Aims’ net assets per share.

The shareholders of Maple Quay are Tan Sri Abdul Rashid Abdul Manaf and Datuk Eddie Leong Kok Wah, two long-time partners of Tan Sri Liew Kee Sin, who were previously directors of S P Setia Bhd.

Making the move by Maple Quay even more interesting is that Liew’s eldest son Liew Tian Xiong will likely join Maple Quay to make the bid for Focal Aims.

Focal Aims has a 2,500-acre (1,000ha) mixed township development in Kota Masai within the super-hot Iskandar development region in Johor and a small high-end project called Saujana 0-Lot along the Federal Highway close to Saujana Golf & Country Resort in Selangor.

The chairman of Focal Aims is Tan Sri Razali Abdul Rahman, who according to its 2012 annual report had a 7.35% stake. Razali is chairman of the Saujana Golf Club and was a high flying corporate player in the 1980s with Peremba Bhd and LANDMARKS BHD [].

The other major shareholders are two groups of brothers.

Managing director E Seng Kiw @ Yee Oy Choy and executive director Yee Yok Sen collectively own a 20.6% stake, while Phang Piow @ Pang Choo Ing and Pang Tin @ Pang Yon Tin own 23.06%.

Another substantial shareholder is Wan Mustapha Wan Ismail, who holds a 3% stake.


Tian Xiong will likely join Maple Quay to make the bid for Focal Aims.
It is believed that all existing major shareholders have agreed to sell to Maple Quay.

EcoWorld first surfaced early this year when in a short period it spent RM605 million to buy four tracts of land totalling 3,000 acres in Kuala Lumpur, Selangor and Johor.

It will on Sept 22 launch its maiden Iskandar project, EcoBotanic, comprising cluster and semi-detached homes located less than 15 minutes from the Second Link to Singapore as well as an integrated mixed used development, EcoSky, in Jalan Ipoh, Kuala Lumpur.

The first phase of EcoBotanic will have a gross development value (GDV) of RM3 billion while EcoSky will have a GDV of RM1.2 billion.

EcoWorld CEO Datuk Chang Khim Wah told The Edge business weekly last week that its 3,000 acres of landbank can generate a GDV of RM30 billion and the company plans to increase its landbank.

Sources say EcoWorld will therefore need a listed vehicle to help it tap the equity market to raise funds. The move by Maple Quay and Liew’s son to take over Focal Aims makes it most likely that the Johor-based company will be the vehicle.

Earlier speculation was that water player SALCON BHD [], in which Leong has a 12.98% stake, might be the listed vehicle for EcoWorld.

Salcon and EcoWorld had announced that they will team up to develop two tracts of land in Johor with a GDV of RM1 billion. EcoWorld had also taken a 49.9% stake in Nusantara Megajuta Sdn Bhd, whose other shareholder is Salcon. Salcon will soon be cash rich as it had just announced selling all its China water assets for RM518 million.


This article first appeared in The Edge Financial Daily, on September 17, 2013.