AmWatch - TSH Resources : Getting land in Kalabakan through related company, 26 Dec 2014

STOCK FOCUS OF THE DAY

TSH Resources : Getting land in Kalabakan through related company     Hold

TSH Resources Bhd has proposed to acquire a 70% stake in Rinukut Sdn Bhd from TSH Ventures Sdn Bhd for RM18.6mil.  TSH Ventures is a private company owned by the directors of TSH. Rinukut has a 60% stake in Rinukut Plantations Sdn Bhd. The other shareholder of Rinukut Plantations is Rakyat Berjaya Sdn Bhd. There were no details on Rakyat Berjaya Sdn Bhd.

TSH is not expected to face problems in financing the acquisition cost of RM18.6mil. As at end-September 2014, the group’s gross cash was RM55.8mil.  In December 2013, TSH had proposed to acquire a 60% stake in a company, which owns 26,794ha of land in Kalabakan, Sabah, for RM180mil. The transaction was called off in July 2014 due to non-fulfilment of certain conditions. The seller of the 60% stake was Ratu Awansari Sdn Bhd. The directors of Ratu Awansari were individuals.  Maintain HOLD on TSH.

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