Naim in tie-up with Gamuda

KUCHING: Naim Holdings Bhd is teaming up with Gamuda Bhd to bid for the billion ringgit Sarawak coastal highway and second trunk road projects.

Managing director Datuk Hasmi Hasan said Naim would have a 70% stake and Gamuda 30% equity interest in the joint venture company.

The coastal highway project will span a distance of some 900km from Sematan in southern Sarawak to Miri in the north.

Chief Minister Datuk Patinggi Abang Johari Tun Openg announced last month that the state government had approved RM6bil to fund the project, which is expected to be awarded in several work packages.

The second trunk road project will link up the coastal highway with the ongoing RM16bil Pan Borneo highway project scheduled for completion by 2021.

Naim and Gamuda are also joint venture partners in undertaking one of the 11 work packages for the Pan Borneo highway project

The package, worth RM1.18bil, involves the construction of a 89.4km stretch from Pantu junction to Batang Skrang in Sri Aman Division.

“Our package for the Pan Borneo highway project is over 30% completed,” Hasmi told StarBiz after the company’s extraordinary general meeting (EGM) in Damai Resort near here yesterday.

At the EGM, shareholders approved the company’s proposed rights issue to raise up to RM159.9mil mainly to finance its three flagship property developments in Kuching, Bintulu and Miri.

The leading Sarawak property developer proposes to undertake a renounceable rights issue of up to 355 million new ordinary shares at an issue price of 45 sen a piece on the basis of three rights shares for every two existing shares.

The issue price represents a discount of 18.18% to the theoretical ex-rights price of 55sen.

The corporate exercise is expected to raise gross proceeds of about RM100mil under the minimum scenario and up to RM159.94mil under the maximium scenario.

To meet the minimium target of RM100mil, Naim has procured from its major shareholders Datuk Amar Abdul Hamed Sepawi (also company chairman), Hasmi and persons acting in concert with them (PACs) irrevocable and unconditional undertaking to subscribe for their respective entitlements (about 142.24 million shares) and additional undertaking to subscribe for an additional of nearly 79.98 million shares not taken up by other entitled shareholders.

Abdul Hamed, Hasmi and their PACs, who collectively own nearly 94.83 million shares or 40.02% of Naim’s issued capital of 250 million (excluding 13 million treasury shares) will seek approval from the Securities Commission for an exemption from the obligation to undertake a mandatory offer for the remaining Naim shares not already owned by them arising from the subscription for the excess rights shares.

If the minimum RM100mil is raised, Naim will channel RM70mil to fund property development activities and RM25mil for repayment of bank borrowings.

If the maximum RM159.9mil is raised, RM114.9mil and RM40mil will be utilised for property development and loan repayment respectively.

Naim group has total borrowings of RM545.4mil and shareholders fund of about RM1.13bil as of Dec 31,2017.

Hasmi said Naim was also bidding for the proposed new Malaysian Maritime Enforcement Agency base project in Miri.

The project,which will involve the construction of an administrative building, a jetty, staff quarters and related infrastructure and facilities is estimated to cost over RM100mil.

Currently, Naim is constructing 200 units of various types of houses in Tanjung Manis,Mukah Division,for Sarawak Timber Industry Development Corporation (STIDC).

Naim group has been awarded two other housing projects worth a combined RM708mil by Syarikat Perumahan Negara Bhd (SPNB).

One of the projects is in Desa Bahagia,Miri for the construction of 951 units of affordable houses and the second in Sultan Tengah, Kuching that would involve the construction of 1,553 units.

Under Desa Bahagia,Naim had completed phase I and II worth RM332.3mil.

The group is currently in the midst of discussion with SPNB pertaining to the design amendments,detailed timing and other aspects of the Desa Bahagia phase III and Sultan Tengah project.

Hasmi said Naim had planned to construct another 150 units of affordable and medium priced houses in its flagship Permyjaya new township, Miri.

Earlier it launched 416 units if residential properties, mainly terraced and semi-detached houses in the township’s lakeside development known as Southlake.