Here's what we have for the week

Significant Event


Comparative Industry Valuations

• Farm Fresh Bhd, a well-known milk manufacturer in Malaysia, recently announced that they will be acquiring a 65% stake in the popular ice cream chain, The Inside Scoop Sdn Bhd, for RM83.9 million. The acquisition is a strategic move for Farm Fresh Bhd to expand its portfolio and diversify its product offerings. The transaction has been accomplished at an impressive valuation of 9.5 times the EV/EBITDA.

Real Estate Industry 


Masterplan of Bandar Cemerlang

• Johor-based property developer, Crescendo Corp Bhd, is making moves to expand its landbank at Bandar Cemerlang by acquiring a sizable 109.85 acres of land from Johor Corp. The acquisition has been agreed at a cost of RM15 per sqft. This move is part of Crescendo Corp's ongoing efforts to expand its presence and capabilities in the property development sector, particularly in the thriving region of Johor.
• Lagenda Properties, a Malaysian developer specializing in affordable housing in smaller cities, has acquired a significant land parcel of 1,075 acres in Kulai from Permodalan Nasional Bhd (PNB). This acquisition will undoubtedly change the residential real estate landscape in Kulai. Lagenda Properties' focus on developing affordable homes will provide a much-needed option for the growing population in the area.

Cash Call/ Debt restructuring/Restructuring/Proposed Listing

• ESR-Logos Reit is a real estate investment trust that invests in logistics-related properties across the Asia-Pacific region. The trust has recently announced that it will be raising SGD 300 million through a private placement of new. The proceeds from the placement will be used to fund potential acquisitions, redevelopments and asset enhancement initiatives (AEIs) of the properties owned by the Reit.

Privatization

• Property tycoon Koh Wee Meng, through his investment vehicle JK Global Wealth, has expressed plans to privatize the property developer Global Dragon with an offer of 12 cents per share.

Company Expansion Plan/ Capex Plan

• Taiwan-based Elna PCB, a printed circuit board (PCB) manufacturer, is investing approximately RM1 billion to set up a new manufacturing facility in Seberang Perai Tengah, Penang.
• Food manufacturer, F&N Holdings Bhd has commercialized the RM 20 million drinking water plant and warehouse in Kota Kinabalu in December 2022 and would be producing plant-based beverages from the new Wang Muang plant, in Thailand later in the year. The commercialization of RM 20 million drinking water plant and warehouse in Kota Kinabalu by F&N Holdings Bhd is expected to contribute to the company's revenue growth and expansion in the Sabah market. The production of plant-based beverages from the new Wang Muang plant in Thailand later in the year could also expand the company's product offerings and potentially tap into the growing trend of plant-based products in the market.

Users can filter the companies' activities via industry or nature of activities via using our tool for Malaysia companies and Singapore companies via the link.
Users can get access to all the major transactions of offices, lands, and factories in Malaysia via this tool.


News we are reading

Share price performance of India's largest oil refiner, Reliance Industries Ltd

• Some Indian refiners have started to shift away from the US dollar as a payment currency for crude oil purchases and instead are choosing to trade in UAE dirhams. This move is believed to be driven by a desire to reduce exposure to currency fluctuations and financial sanctions that can impact dollar-based transactions. It is also seen as a way to strengthen trade ties between India and the UAE. The UAE is one of India's largest trading partners, and the two countries have been working to expand their economic and strategic ties in recent years. The impact of Indian refiners ditching USD and trading in UAE Dirhams is that it could potentially weaken the position of the US dollar as the dominant currency for international trade. It could also lead to increased demand for the UAE Dirham and strengthen the UAE's position as a major financial center in the Middle East. Additionally, this move could provide cost savings for Indian refiners as they may be able to avoid currency conversion fees and fluctuations in the value of the US dollar. (Reuters