Wednesday, October 2, 2013

Protasco extends acquisition timeline for O&G firm

Protasco extends acquisition timeline for O&G firm
Business & Markets 2013
Written by Charlotte Chong of theedgemalaysia.com    
Wednesday, 02 October 2013 10:30

KAJANG: PROTASCO BHD [] is extending its acquisition timeline for Indonesian oil and gas firm PT Anglo Slavic Indonesia (PTI ASI) from Sept 30 to March 31, 2014, said group managing director Datuk Chong Ket Pen.

He said after the EGM yesterday that the vendor, PT Anglo Slavic Utama (PT ASU), had requested an extension to fulfil its “legal duty”, and new conditions laid down by Protasco have to be complied with by March 31 next year.


Protasco had previously extended the timeline to July 31 to complete the due diligence.

“But I think we don’t need to stretch until March 31, 2014,” said Chong, adding that most of the documents have been finalised. “We will be able to wrap up [the legal documents] before the due date.”

To recap, Protasco proposed last December to acquire a 76% stake in PTI ASI, or 95 million shares from PT ASU for a purchase consideration of US$55 million (RM178 million). PTI ASI owns an indirect interest in an oil field in Kuala Simpang Timur Field in the Nanggroe Aceh Darussalam Province in Indonesia.

According to Chong, the consideration for PTI ASI could turn out lower than US$55 million, but he declined to elaborate.

On top of the purchase to be agreed upon, he said, Protasco will invest an additional US$30 million to US$40 million to “sink more wells” provided that the acquisition is completed.

Protasco would also consider digging the existing wells. “There are about 30 wells and they are 1,000m deep. We need to invest US$1.5 million to US$2 million to dig one well,” Chong said.

He said the costs are recoverable with reimbursement from Indonesia’s state oil major Pertamina. “But this will depend on whether the acquisition [of PTI ASI] is successful.”

On Protasco’s property segment, Chong said the 100-acre (40ha) De Centrum city in Kajang will be four times the size of Mid Valley City when it is fully developed.

The first phase of De Centrum is 30% completed, he said, adding that piling has been done. “We have a few units of our service apartments left and we have sold almost all our shoplots.” The total gross development value (GDV) of the first phase  is RM240 million.

With a selling price of RM500 psf, the take-up rate of its small office/home office (SoHo) development in De Centrum is more than 50%, Chong said. “The reason for the take-up rate at being only 50% is because we just launched the SoHo two months ago.”

Protasco plans to launch the second phase of De Centrum by the middle of next year, with a GDV of RM500 million.

“For phase 2A, our planner is now trying to fine-tune that parcel of land,” Chong said, adding that the company would probably construct an office and apartment block each. “Phase 2B will comprise a hotel and a convention centre.”

In Iskandar Malaysia, Protasco recently tied up with ASDION BHD [] to undertake property projects on five parcels of leasehold land of 5.8ha in Plentong, Johor, to be acquired from Johor Corp for RM29.6 million.

According to Chong, the land in Plentong could produce a GDV of RM1 billion. “We are still at the purchasing stage and we are going to sign the sale and purchase agreement [for the land] in a few days.”





This article first appeared in The Edge Financial Daily, on October 02, 2013.



Source/Extract/Excerpts/来源/转贴/摘录: http://www.theedgemalaysia.com/
Publish date: 02/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock