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Reports Malaysia

Malaysia stock market and companies daily report (July 07, 2014)

July 7, 2014, Monday, 03:32 GMT | 22:32 EST | 07:02 IST | 09:32 SGT
Contributed by Shares Investment

Fajarbaru To Expand Timber Business

- Fajarbaru Builder Group’s 51 percent-owned subsidiary, Billion Variety, has agreed to extract and sell timber from an approximate land area of 1,423 acres in Jerantut, Pahang, licensed to Cekal Kasih.

- Cekal Kasih’s license, awarded by Yayasan Pahang, is valid for a duration of 12 months from date of issuance of license for timber extraction.

- Billion Variety will fork out over RM6 million for the agreement, with Fajarbaru coming up with RM3.1 million of the consideration.

Significance: The agreement will enable Fajarbaru to expand its earning base from logging and timber trading business.

Sime Darby To Divest Land In Elimna West For RM240m

- Sime Darby’s property unit has agreed to divest 135 acres of freehold land in Elmina West to Eastern & Oriental (E&O) for a consideration of RM239.8 million.

- E&O aims to develop the land into a wellness and more liveable city and they expect the actual gross development value to be potentially higher than the estimated baseline of RM1.5 billion.

- As part of the agreement, Sime Darby will also receive an amount equivalent to 20 percent of the enhanced GDV in excess of the baseline.

Significance: With this agreement, Sime Darby Property’s managing director, Datuk Seri Wahab Maskan, has mentioned that it will enable Sime Darby to enhance its landbank value, to build sustainable communities and to create value for shareholders.

UDA To Redevelop RM3b BB Plaza

- Together with Tradewinds (M), UDA Holdings is redeveloping Bukit Bintang Plaza (BB Plaza) into a 60-storey luxury condominium atop a three-level mall with a gross development value of about RM3 billion.

- The redevelopment will include an underground mass rapid transit station presently under construction.

- Works to demolish the 35-storey BB Plaza are expected to commence by the middle of 2015.

Significance: BB Plaza, which has been held by UDA for more than three decades, is set for redevelopment to blend in with the transformation of Jalan Bukit Bintang as the area is primed for revamp as it seeks to attract new investors and tenants.

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