Quoting sources, Reuters had reported on Monday that the listing of its sugar business would raise about US$215 million (RM651 million) for Felda Group, which would sell about 25% to 30% of its stake in Malaysian Sugar Manufacturing Co Bhd (MSM).
CIMB Group Holdings Bhd and Malayan Banking Bhd, the organisers of Invest Malaysia 2011 are tipped to be the managers of the IPO.
Felda acquired MSM and its related sugar business from PPB Group Bhd for RM1.25 billion last year.
“Every listing is good for the Malaysian market. Every big listing is even better, attracting interest from domestic and foreign investors alike, as the huge over-subscription rates for MMHE and Petronas Chemicals — 28 and 17 times respectively — attest,” Najib said in his speech yesterday.
Najib announced the planned listings of two Petroliam Nasional Bhd (Petronas) subsidiaries — Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) and Petronas Chemicals Group Bhd — at last year’s Invest Malaysia 2010.
“Today, the Petronas Group accounts for over 10% of Bursa Malaysia’s total market capitalisation,” the prime minister said.
Bursa Malaysia Bhd CEO Datuk Tajuddin Atan expected the listing of Felda Group’s sugar business to be positive for the local stock market. He said it would provide investors with opportunities to participate in the growth of a stable company.
WOOING TALENT... Prime Minister Datuk Seri Najib Razak announced yesterday a flat rate of 15% income tax for five years for returning Malaysian professionals as part of the government’s efforts to lure overseas talent back.
Analysts said the listing would spur interest and possibly act as a catalyst to attract foreign participation back to the local stock market, which had languished since the beginning of this year due to risk reallocation strategies from emerging markets to developed markets.
“This will be a weighty IPO in an industry which is stable and commodity-based — it will attract interest from foreign investors. It is no surprise that the government chooses to list it at this point in time to maximise monetary gains for Felda,” a fund manager with a local insurance arm who did not want to be named told The Edge Financial Daily.
In a related development, Najib said Ekuiti Nasional Bhd (Ekuinas), the government-linked private equity fund would invest up to RM600 million this year, with a total economic capital deployment of up to RM1 billion, in the Malaysian economy.
This is part of the planned total allocation of RM4.5 billion to Ekuinas between now and 2015 as part of the 10th Malaysia Plan.
The PM also announced a tax incentive of a flat rate of 15% income tax for five years for returning Malaysian professionals, as part of the government’s efforts to lure overseas talent back home to work.
This measure is part of the planned revamp of the Returning Experts Programme (REP) under Talent Corp Malaysia Bhd, the government agency tasked with wooing Malaysians living overseas to return home. More details on the REP revamp will be announced at a later date.
On government holdings, Najib said non-core holdings and non-competitive assets including 26 parcels of government land would be divested.
“At least 10 companies earmarked for divestment are expected to complete the process by the end of this year. In addition, four lots of government land are being sold, with estimated proceeds in excess of RM1 billion,” he said, adding that the disposal of Pos Malaysia Bhd is now in its final stages. The evaluation was completed and recommendations would shortly be made to the Khazanah Nasional Bhd board of directors.
Aided by these disposals, Najib expected the capital market size to more than double to RM4.5 trillion by 2020 and with greater internationalisation this figure could increase to as much as RM5.8 trillion over the same period.
Minister in the Prime Minister’s Department Datuk Seri Idris Jala said another 10 entry point projects (EPPs) are expected to be announced under the Economic Transformation Programme (ETP) by the end of this week.
According to Najib, the government had so far launched 60 projects and initiatives across 46 separate EPPs of which 30 are works in progress, four already completed and 26 are underway. - by Daniel Khoo of theedgemalaysia.com
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