Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 20): Tadmax Resources Bhd hopes to conclude the planned sale of its wholly-owned subsidiary Tadmax Power Sdn Bhd to 1Malaysia Development Bhd (1MDB) for RM317.3 million cash “as soon as possible,” Tadmax Resources Chief Executive Officer Mohamad Reezal Siddiq said.

Taxmax Power is the owner of approximately 124ha (310 acres) of leasehold land in Pulau Indah in Klang, Selangor. Both Tadmax Resources and 1MDB had entered into a share sale agreement on February 20 this year.

Today, Mohamad Reezal said the deal might be concluded by this October 31.

“We are fairly anxious, (as) we are the vendor, and we hope we can conclude this deal as soon as possible.

“It's an internal issue on their (1MDB) end as far as I'm concerned. They are just asking for (more) time... So, basically there is no update except to wait until October 31 - a request by them. Hopefully we will conclude the deal by then,” Mohamad Reezal said to the press after Tadmax Resources' extraordinary general meeting here today.

This deal is deemed crucial for Tadmax Resources as it would enable the group to pare borrowings, and strengthen cash reserves for future acquisitions. These potential acquisitions include land bank for property development.

Mohamad Reezal said the the key focus of Tadmax Resources moving forward was in property development.

“The general direction is basically to look at property development projects and we already have one in Labuan that we are focusing on (via acquisition of Ganggarak Development Sdn Bhd). We will build from there,” he said.

The 16.6ha (41.5 acre) land in Labuan has been earmarked for residential and commercial development with a gross development value of up to RM570 million, according to him.

On Tadmax's financials, Mohamad Reezal said the group would try to “moderate” losses this financial year ending December 31, 2014.

It is, however, uncertain if the group would return to the black this year, according to him.

For the six months ended June 30, 2014, Tadmax Resources narrowed its net loss to RM8.5 million from a RM26.5 million net loss a year earlier. Revenue came in at RM11.6 million compared with RM124,000 previously.

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