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JAKS (Lower Gearings, Vietnam Power Plant Project)
It is aligning its business portfolio after the loss-making property development venture that was hit hard by the slowdown.
Jaks Resources will focus on construction and its power generation in Vietnam. However, the group did not set a timeline to cease its property development business.
Jaks Resources shareholders have given the greenlight to dispose of four parcels of land measuring 5.99ha within the Sungai Penaga Industrial Park in Subang Jaya for RM167.59 million cash. The land sale will translate into an estimated net gain of RM97.1 million. The proceeds from the exercise will be used mainly to pare down the group's debts by RM100 million and lower its gearing to a "comfortable level" of 0.6 times.
It has one last project, which is the Pacific Star mixed development in Section 13, Petaling Jaya.
Jaks Resources is still working to dispose of its Evolve Concept Mall in Ara Damansara, citing weak market conditions as among the reasons for its difficulty in securing a buyer.
In Vietnam, Jaks Resources is involved in a US$1.87 billion 1,200MW build-operate-transfer (BOT) coal-fired thermal power plant project in Hai Duong, together with integrated power engineering service provider China Power Engineering Consulting Group Co Ltd (CPECC). The joint venture involves Jaks Resources holding 30% share while the remaining 70% is held by CPECC.
Jaks Resources currently (Dec 2017) recognises about 80% of its overall group profit from the construction of the Vietnam power plant, which it expects to be completed and begin operations in 2020.
Apart from its Vietnam venture, Jaks Resources will continue tendering for Malaysia-based construction projects in areas. Jaks Resources is not eyeing transit-oriented projects such as the Mass Rapid Transit Corp (MRT) and Light Rail Transit (LRT) packages.
As of September 2017, the group has an outstanding orderbook of RM850 million for local construction jobs alone. Including the Vietnam IPP, Jaks Resources is committed to RM2.6 billion worth of projects.
It is aligning its business portfolio after the loss-making property development venture that was hit hard by the slowdown.
Jaks Resources will focus on construction and its power generation in Vietnam. However, the group did not set a timeline to cease its property development business.
Jaks Resources shareholders have given the greenlight to dispose of four parcels of land measuring 5.99ha within the Sungai Penaga Industrial Park in Subang Jaya for RM167.59 million cash. The land sale will translate into an estimated net gain of RM97.1 million. The proceeds from the exercise will be used mainly to pare down the group's debts by RM100 million and lower its gearing to a "comfortable level" of 0.6 times.
It has one last project, which is the Pacific Star mixed development in Section 13, Petaling Jaya.
In Vietnam, Jaks Resources is involved in a US$1.87 billion 1,200MW build-operate-transfer (BOT) coal-fired thermal power plant project in Hai Duong, together with integrated power engineering service provider China Power Engineering Consulting Group Co Ltd (CPECC). The joint venture involves Jaks Resources holding 30% share while the remaining 70% is held by CPECC.
Jaks Resources currently (Dec 2017) recognises about 80% of its overall group profit from the construction of the Vietnam power plant, which it expects to be completed and begin operations in 2020.
Apart from its Vietnam venture, Jaks Resources will continue tendering for Malaysia-based construction projects in areas. Jaks Resources is not eyeing transit-oriented projects such as the Mass Rapid Transit Corp (MRT) and Light Rail Transit (LRT) packages.
As of September 2017, the group has an outstanding orderbook of RM850 million for local construction jobs alone. Including the Vietnam IPP, Jaks Resources is committed to RM2.6 billion worth of projects.
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