Tuesday 19 Mar 2024
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KUALA LUMPUR: Shares in Benalec Holdings Bhd (fundamental: 1.65; valuation: 1.8) rose as much as 6.25% yesterday, after news of the controversial Forest City project in Johor getting approval of its detailed environmental impact assessment (DEIA) from the Department of Environment (DoE).

While the marine construction services provider is not involved in the Forest City project, it has a reclamation project nearby, covering 1,410ha at Tanjung Piai, for the purpose of an industrial oil and gas hub. The approval granted to Forest City sparked optimism about Benalec’s reclamation project in Tanjung Piai.

Benalec’s share price rose 2.5 sen or 3.91% to close at 66.5 sen yesterday, with some 6.45 million shares done. The counter earlier gained as much as four sen or 6.25% to reach a high of 68 sen.

Country Garden Pacific View Sdn Bhd (CGPV), the master developer of the Forest City project, on Wednesday announced that the DoE had accepted its proposed measures to mitigate environmental impacts through “integrated and workable solutions”. CGPV’s shareholders include China’s Country Garden Holdings Co Ltd, the sultan of Johor and the Johor state government.

As recently as Jan 7, Benalec said it had yet to receive the go-ahead from the DoE to start reclamation works for its Tanjung Piai integrated petroleum and petrochemical hub and maritime industrial park project. It then clarified to Bursa Malaysia that it had submitted the DEIA report to the DoE in late October 2014, and was still awaiting an official approval.

 

This article first appeared in The Edge Financial Daily, on January 16, 2015.

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