TSH hopes to raise RM60m from Ekwood listing
Financial Daily, Monday, 21 June, 2004
TSH Resources Bhd hopes to raise RM60 million from its offer for sale of shares in its soon-tobe-listed Ekowood International Bhd, and the proceeds could be used to build more palm oil mills in Indonesia
Its executive deputy chairman Datuk Azizan Abd Rahman said TSH had submitted a proposal for the listing of its wholly owned subsidiary on Bursa Malaysia's Main Board to the Securities Commission (SC).
"We expect to get approval from the SC in one to two months," he told reporters after the group's AGM in Petaling Jaya on Friday.
Ekowood manufactures downstream wood products and TSH will maintain a more than 50% stake in Ekowood after its listing.
On the RM60 million proceeds, Azizan said the money could be used to build more palm oil mills in Indonesia .
TSH executive director Lim Fook Hin said the group's fast palm oil mill in West Sumatra, Indonesia costing RM30 million would begin operations next January. The 60-tonne per hour mill was expected to contribute RM 10 million to TSH's revenue in 2005.
Lim said Indonesia was currently facing an acute shortage of palm oil milling capacity. Hence TSH would be on the lookout to build more mills in the country.
On its 10 megawatts (MW) Kunak power plant in Sabah , Lim said it would be in operation by end-July.
TSH has secured a 21-year renewable energy purchase agreement with the Sabah Electricity Board to supply up to l OMW per annum at 21.25 sen per kilowatt beginning July 2004.
Lim also said TSH was in negotiations with Tenaga Nasional Bhd on a power purchase agreement for a proposed biomass power plant in Perak. He declined to elaborate.
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