KUALA LUMPUR (April 7): Encorp Bhd is in preliminary discussions with its major shareholder Felda to explore a collaboration in property development.

In a statement to Bursa Malaysia today, Encorp (fundamental: 0.45; valuation: 1.4), a property developer and construction firm, said it had however not yet finalised the terms and agreement with Felda.

Felda is the acronym for the Federal Land Development Authority, which owns 70.97% in Encorp.

Encorp’s statement came in response to a news report indicating the firm was confident of partnering Felda to develop the latter’s land bank in key urban areas within Selangor, Malacca and Johor.
 
The report indicated the proposed collaboration could see Encorp becoming the master developer of the Felda land.

At the 12:30pm market break, Encorp shares rose three sen or 2.2% to RM1.39, for a market capitalisation of RM386.8 million. The stock saw a trade volume of 20,000 units.

Encorp had risen 32% this year, significantly outperforming the FBM KLCI 5% gain.

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