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Reports Malaysia

Malaysia stock market and companies daily report (August 20, 2014)

August 20, 2014, Wednesday, 06:14 GMT | 02:14 EST | 10:44 IST | 13:14 SGT
Contributed by Shares Investment

Bumi Armada Secures 10-Year RM4b FPSO Lease

- Bumi Armada’s subsidiary, Bumi Armada Offshore Holdings, together with its joint venture company, PT Armada Gema Nusantara, have been contracted to lease a floating production, storage and offloading vessel (FPSO) to Husky-CNOOC Madura.

- The duo, will lease out the vessel for an initial period of 10 years, valued at US$1.2 billion (RM3.8 billion), with options of five annual extensions worth US$147 million.

- The vessel will work on the Madura BD Field in Indonesia.

Significance: The lease allows Bumi Armada to be part of Indonesia’s oil and gas industry, which has proven reserves of 3.9 billion barrels of oil and 141 trillion cubic feet of natural gas.

Masterskill Disposes HK Restaurant Operator Stake For RM33m

- Over various dates between 11 June and 18 August, Masterskill Education Group sold its entire stake in HK-listed restaurant operator, Gayety Holdings, for RM33.2 million.

- Masterskill acquired the shares, equivalent to 3.7 percent of Gayety Holdings total number of shares, on 3 April for a total consideration of HK$47.2 million.

- Masterskill is expected to realise an estimated net gain of RM12.3 million from the disposal.

Significance: The investment, which returned a profit of 58.7 percent in a short period of time, is expected to lift Masterskill’s net tangible asset and earnings per share by RM0.03 each.

Parkson To Net RM110m Gain From Mall Disposal

- Parkson Holdings has proposed to dispose KL Festival City Mall, measuring approximately 487,342 square feet (sqf) in net lettable area (NLA), to Festiva Mall and AsiaMalls for RM349 million in cash.

- Located in Kuala Lumpur, Malaysia, KL Festival City Mall is a three-storey shopping mall with a current occupancy rate of about 99 percent.

- With the original cost of the mall at about RM246 million, the sale is expected to net Parkson a gain of about RM110 million and a net cash flow of approximately RM340 million.

Significance: As Parkson is embarking on the construction of premium shopping malls, defined as malls with NLA of approximately 1 million sqf, KL Festival City Mall is deemed small to drive its expansion plans.