HO Hup Construction Company Bhd, expects to complete its restructuring exercise by the third quarter of this year, its Executive Director, Derek Wong said.
He also said the company is still awaiting the outcome of the court case on the joint development agreement between its subsidiary, Bukit Jalil Development Sdn Bhd and Pioneer Haven Sdn Bhd, relating to a 24.3 hectare piece of land in Bukit Jalil, Kuala Lumpur.
Speaking to reporters after the company's extraordinary general meeting (EGM) here today, Wong said the company plans to focus on property development going forward.
'It is hoped the property development will be a major contributor to the company's business going forward,' he added.
On November last year, Ho Hup had proposed to acquire a 100 per cent stake in property developers Fivestar Development (Puchong) Sdn Bhd and Kolektra Recreation Sdn Bhd for RM46.804 million via the issuance of new shares.
The acquisition is part of Ho Hup's initiative to put the company on a stronger financial footing through, among others, the injection of new viable businesses.
Ho Hup is also in the midst of seeking a three-month extension to May 4, from Bursa Malaysia Securities, for its PN17 regularisation plan.
At the EGM, the company received approval from its shareholders for the proposed disposal of 1.34 hectares of land in Bukit Jalil for RM9.55 million. -- BERNAMA
Showing posts with label HOHUP. Show all posts
Showing posts with label HOHUP. Show all posts
Thursday, February 10, 2011
Tuesday, April 6, 2010
HoHup ... Apr10
It may have to resort to bringing Malton Bhd to court if it is not able to renegotiate a fairer deal in their joint development agreement (JDA) involving a 60-acre plot of land in Bukit Jalil.
If an impasse occurs, a court settlement would seem the only way to resolve it because Ho Hup’s shareholders can’t block the JDA in an EGM, as the agreement does not involve the disposal of assets.
The JDA was entered into and announced by Ho Hup’s previous board led by Datuk Vincent Lye just a few hours before a March 17 2010 EGM that had Lye and the previous board ousted from the company.
Now, the new board of Ho Hup, led by ex-Kuala Lumpur mayor Tan Sri Kamaruzzaman Shariff, is trying to renegotiate the JDA. This is an important task for the new board because the 60 acres in question is Ho Hup’s last piece of land and is the PN17outfit’s only hope for revival.
Bukit Jalil Development Sdn Bhd (BJD), a 70%-owned subsidiary of Ho Hup, was to develop the land jointly with Pioneer Haven Sdn Bhd (PHSB), a wholly owned subsidiary of Malton.
It was agreed that PHSB would be solely responsible for the financing of the development, and that BJD would not fork out any money but would be entitled to at least RM265 million, or 17% share of the project’s gross development value, from Malton, over the various phases of the project.
The minimum entitlement of RM265 million reflects just the market value of the 60-acre land (at RM101.40 per sq ft). If Ho Hup were to sell the land outright, it could get the entire amount or even more in a one-time payment. But in the JDA, it would only get the amount in stages over the development period of say, 10 years? And where is the profit element from this deal? So how can this be fair to Ho Hup?
Ho Hup’s hopes now rested on Malton’s goodwill. The company hopes that Malton will do the right thing and renegotiate a deal that is fair to both parties. Give Ho Hup control of its assets so that it can chart its own destiny.
In order for Ho Hup to survive under its regularisation plan, it would have to resolve its cash flow problems and also look at its future businesses, which is property development and construction.
That plot of land is key to the PN17 company’s revival scheme under a so-called “alternative” regularisation plan proposed by major shareholder Datuk Low Tuck Choy prior to the March 17 2010 EGM. The land is now tied to the JDA.
Meanwhile Ho Hup shareholders voted in favour to sell a 10.87-acre plot of land in Bukit Jalil to Magna Prima Bhd’s subsidiary Permata Juang (M) Sdn Bhd (PJSB) for RM19.41 million, or at RM41.01 psf.
There were higher offers for the land from three other tenders, namely Sagaharta Sdn Bhd, Jublex Sdn Bhd, and Ng Kee Leen, an executive director of Gamuda Bhd who is also the president of Master Builders Association Malaysia (MBAM). According to independent valuer Henry Butcher Malaysia, the said land was valued at RM45.01 psf, or RM21.30 million as at January 2010. The price agreed to with PJSB represents a discount of RM1.89 million or about 8.9% to the land’s current market value.
The company would examine the conditions set out in the sales and purchase agreement (S&P), “as there are legal implications”. This is because the S&P was signed between the previous board and PJSB.
There was a delay in the submission of Ho Hup’s regularisation plans to Bursa Malaysia and the Securities Commission as the previous regularisation plans had taken into account the 60 acres of land, which was now tied to the JDA.
The company would apply to Bursa for another extension of the submission deadline after Ho Hup had applied for a three-month extension on Jan 22, 2010 to address its Practice Note 17 (PN17) status. The current deadline falls on April 4, 2010.
The JDA is a stumbling block for the company and in the meantime it hopes that the regulators would consider an extension.
It was seeking an extension from April 2 up to May 2 2010 to issue the circular to shareholders in relation to the proposed disposal of plot of land in Mukim Petaling measuring 13,398 sq m for RM7.64mil cash to Action Master Sdn Bhd. The planned disposal was first announced in December 2009.
Meanwhile the company has yet to appoint an executive to run the company. As it is, the company appears to have lost control of its most valuable asset, the 60-acre land in Bukit Jalil.
If an impasse occurs, a court settlement would seem the only way to resolve it because Ho Hup’s shareholders can’t block the JDA in an EGM, as the agreement does not involve the disposal of assets.
The JDA was entered into and announced by Ho Hup’s previous board led by Datuk Vincent Lye just a few hours before a March 17 2010 EGM that had Lye and the previous board ousted from the company.
Now, the new board of Ho Hup, led by ex-Kuala Lumpur mayor Tan Sri Kamaruzzaman Shariff, is trying to renegotiate the JDA. This is an important task for the new board because the 60 acres in question is Ho Hup’s last piece of land and is the PN17outfit’s only hope for revival.
Bukit Jalil Development Sdn Bhd (BJD), a 70%-owned subsidiary of Ho Hup, was to develop the land jointly with Pioneer Haven Sdn Bhd (PHSB), a wholly owned subsidiary of Malton.
It was agreed that PHSB would be solely responsible for the financing of the development, and that BJD would not fork out any money but would be entitled to at least RM265 million, or 17% share of the project’s gross development value, from Malton, over the various phases of the project.
The minimum entitlement of RM265 million reflects just the market value of the 60-acre land (at RM101.40 per sq ft). If Ho Hup were to sell the land outright, it could get the entire amount or even more in a one-time payment. But in the JDA, it would only get the amount in stages over the development period of say, 10 years? And where is the profit element from this deal? So how can this be fair to Ho Hup?
Ho Hup’s hopes now rested on Malton’s goodwill. The company hopes that Malton will do the right thing and renegotiate a deal that is fair to both parties. Give Ho Hup control of its assets so that it can chart its own destiny.
In order for Ho Hup to survive under its regularisation plan, it would have to resolve its cash flow problems and also look at its future businesses, which is property development and construction.
That plot of land is key to the PN17 company’s revival scheme under a so-called “alternative” regularisation plan proposed by major shareholder Datuk Low Tuck Choy prior to the March 17 2010 EGM. The land is now tied to the JDA.
Meanwhile Ho Hup shareholders voted in favour to sell a 10.87-acre plot of land in Bukit Jalil to Magna Prima Bhd’s subsidiary Permata Juang (M) Sdn Bhd (PJSB) for RM19.41 million, or at RM41.01 psf.
There were higher offers for the land from three other tenders, namely Sagaharta Sdn Bhd, Jublex Sdn Bhd, and Ng Kee Leen, an executive director of Gamuda Bhd who is also the president of Master Builders Association Malaysia (MBAM). According to independent valuer Henry Butcher Malaysia, the said land was valued at RM45.01 psf, or RM21.30 million as at January 2010. The price agreed to with PJSB represents a discount of RM1.89 million or about 8.9% to the land’s current market value.
The company would examine the conditions set out in the sales and purchase agreement (S&P), “as there are legal implications”. This is because the S&P was signed between the previous board and PJSB.
There was a delay in the submission of Ho Hup’s regularisation plans to Bursa Malaysia and the Securities Commission as the previous regularisation plans had taken into account the 60 acres of land, which was now tied to the JDA.
The company would apply to Bursa for another extension of the submission deadline after Ho Hup had applied for a three-month extension on Jan 22, 2010 to address its Practice Note 17 (PN17) status. The current deadline falls on April 4, 2010.
The JDA is a stumbling block for the company and in the meantime it hopes that the regulators would consider an extension.
It was seeking an extension from April 2 up to May 2 2010 to issue the circular to shareholders in relation to the proposed disposal of plot of land in Mukim Petaling measuring 13,398 sq m for RM7.64mil cash to Action Master Sdn Bhd. The planned disposal was first announced in December 2009.
Meanwhile the company has yet to appoint an executive to run the company. As it is, the company appears to have lost control of its most valuable asset, the 60-acre land in Bukit Jalil.
Tuesday, March 30, 2010
HoHup ... Mar10
Tan Sri Tong Yoke Kim @ Tong Kiot Seng, who controls 19.27% of Bina Puri Holdings
Bhd via a privately held entity, has emerged as a substantial shareholder in Ho Hup with a 7.28% interest.
Tong and his son, Datuk Andrew Tong So Han, own just under 20% of Bina Puri, also a construction company, via their entity Bumimaju Mawar Sdn Bhd, making them the second-largest shareholders. It remains unclear from whom Tong acquired the shares as the deal was done off market.
Little is also known of Tong, other than his interest in Bumimaju and that he is listed on the Chinese Chamber of Commerce & Industry of Kuala Lumpur and Selangor’s website as among its honorary presidents for 2006-2009.
Via Bumimaju, the Tongs had acquired their interest in Bina Puri in September 2009, when the company completed a debt-capitalisation exercise in which it issued 20 million new shares to Bumimaju worth RM20 million, after it had given RM20 million in advances to Bina Puri for working capital.
Bina Puri had carried out the exercise to trim its accumulated debt of RM156 million.
Prior to the exercise, Bumimaju did not have any interest in Bina Puri, whose largest shareholder is Jentera Jati Sdn Bhd with also an under-20% stake.
The emergence of Tong as a substantial shareholder in Ho Hup is bound to raise eyebrows, given that it had just crossed a major hurdle in resolving its boardroom tussle which began in 2008.
The new board is now evaluating both regularisation plans submitted by Low and Lye, with a new plan expected to be submitted in early April 2010.
Low’s plan involves a renounceable one-for-four rights issue of 25.5 million irredeemable convertible preference shares (ICPS) in Ho Hup, with two free warrants for each ICPS subscribed, under an exercise expected to raise an initial RM25.5 million. He also proposed the disposal of non-core land to raise more capital and to enter into joint development deals with other parties. Lye had originally put forth a 95% capital reduction plan and a sizeable new share placement, which would have brought in fresh cash and new controlling shareholders, but this was then scaled down to a 60% capital reduction and a smaller share placement.
The board headed by Lye had made an announcement to Bursa Malaysia just hours before the EGM that Ho Hup’s unit Bukit Jalil Development Sdn Bhd (BJD) had formed a JV development agreement with Malton Bhd’s subsidiary Pioneer Haven Sdn Bhd to develop a parcel of land owned by BJD, entitling BJD to at least RM265 million, while Pioneer Haven would be solely responsible for meeting and defraying the development costs.
Going forward further developments including legal actions not to be ruled out, it was reported that the company’s advisers, AmInvestment Bank Bhd and Newfields Advisors Sdn Bhd, had resigned, presenting another hurdle to its restructuring plans.
Bhd via a privately held entity, has emerged as a substantial shareholder in Ho Hup with a 7.28% interest.
Tong and his son, Datuk Andrew Tong So Han, own just under 20% of Bina Puri, also a construction company, via their entity Bumimaju Mawar Sdn Bhd, making them the second-largest shareholders. It remains unclear from whom Tong acquired the shares as the deal was done off market.
Little is also known of Tong, other than his interest in Bumimaju and that he is listed on the Chinese Chamber of Commerce & Industry of Kuala Lumpur and Selangor’s website as among its honorary presidents for 2006-2009.
Via Bumimaju, the Tongs had acquired their interest in Bina Puri in September 2009, when the company completed a debt-capitalisation exercise in which it issued 20 million new shares to Bumimaju worth RM20 million, after it had given RM20 million in advances to Bina Puri for working capital.
Bina Puri had carried out the exercise to trim its accumulated debt of RM156 million.
Prior to the exercise, Bumimaju did not have any interest in Bina Puri, whose largest shareholder is Jentera Jati Sdn Bhd with also an under-20% stake.
The emergence of Tong as a substantial shareholder in Ho Hup is bound to raise eyebrows, given that it had just crossed a major hurdle in resolving its boardroom tussle which began in 2008.
The new board is now evaluating both regularisation plans submitted by Low and Lye, with a new plan expected to be submitted in early April 2010.
Low’s plan involves a renounceable one-for-four rights issue of 25.5 million irredeemable convertible preference shares (ICPS) in Ho Hup, with two free warrants for each ICPS subscribed, under an exercise expected to raise an initial RM25.5 million. He also proposed the disposal of non-core land to raise more capital and to enter into joint development deals with other parties. Lye had originally put forth a 95% capital reduction plan and a sizeable new share placement, which would have brought in fresh cash and new controlling shareholders, but this was then scaled down to a 60% capital reduction and a smaller share placement.
The board headed by Lye had made an announcement to Bursa Malaysia just hours before the EGM that Ho Hup’s unit Bukit Jalil Development Sdn Bhd (BJD) had formed a JV development agreement with Malton Bhd’s subsidiary Pioneer Haven Sdn Bhd to develop a parcel of land owned by BJD, entitling BJD to at least RM265 million, while Pioneer Haven would be solely responsible for meeting and defraying the development costs.
Going forward further developments including legal actions not to be ruled out, it was reported that the company’s advisers, AmInvestment Bank Bhd and Newfields Advisors Sdn Bhd, had resigned, presenting another hurdle to its restructuring plans.
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