The Thinker Touch

Author: thethinker   |   Latest post: Fri, 22 Oct 2021, 10:41 AM


FELDA is considering selling its stake in Encorp Bhd [6076]

Author:   |    Publish date:

THE Federal Land Development Authority (FELDA) is rumoured to be interested in selling a share in developer Encorp Bhd.

The asking price is around RM1 (a share). FELDA paid a significant price for its investment, thus it is now examining a variety of choices.

According to another source, FELDA is also considering selling a block of shares to a bumiputera entrepreneur who can turn things around, and if the share price rises, FELDA will quit the company.

FELDA, through its subsidiary Felda Investment Corp Sdn Bhd (FIC), purchased a 49.5 percent ownership in Encorp from Tan Sri Mohd Effendi Norwawi in May 2014 for RM239.72 million, or RM1.55 per share, triggering a mandatory general offer. FIC also offered Encorp's redeemable convertible unsecured loan stock for 55 sen per warrant and RM1.55 (RCULS). To sum it all up, FELDA acquired 72.27 percent of Encorp after paying RM306.11 million.

Anjakan Masyhur Sdn Bhd, the vehicle of Azhar Mohd Awal and Azman Hanafi Abdullah, is another significant shareholder in Encorp, with a 12.65% ownership stake.

Anjakan Mashyur has been an Encorp shareholder since September 2007. Azhar and Azman are not members of Encorp's board of directors. Anjakan Mashyur is most likely controlled by businessman Tan Sri Syed Mokhtar Albukhary, based on its address (110 Jalan Maarof, Bangsar, Kuala Lumpur). It is worth mentioning that the tycoon's firms all share the same address.

Strand Mall generates a lot of interest for Encorp

It is thought that Encorp is currently reviewing some of the inquiries, but the company is also not in a rush to sell because it intends to revitalise the mall and the surrounding region by giving it a new lease on life.

Strand Mall is part of Encorp Strand, an 18.6-hectare integrated commercial complex created by Encorp in collaboration with Selangor State Development Corp. (PKNS).

Red Carpet Avenue, a 90-foot-wide and 800-foot-long covered, climate-controlled al fresco boulevard, Encorp Strand Garden Office, and Encorp Strand Residences are all part of the RM1.4 billion construction.

The mall, which has a net lettable space of 435,000 square feet, debuted in May 2014 and was Encorp's first foray into retail development and administration.
When the mall opened, Kota Damansara was ecstatic.
The mall features three levels of retail space with over 200 stores and 2,133 parking spaces. Its tenancy is made up of 30% education, 30% food and beverage (F&B) businesses, 25% entertainment, and 25% fashion.
Encorp Bhd chairman Hussein Ismail says the developer is planning to rebrand Strand Mall by conceptualising it as a medical, wellness and lifestyle hub. Encorp Pic
Encorp's aim, according to Hussein, is to ensure that Strand Mall establishes an excellent track record, sustained income, and strong branding in the eyes of consumers.
Encorp has received inquiries, he said, and a few conversations are underway with operators and stores interested in operating or leasing the mall.
“We're currently speaking with them. If all goes well, we hope to work with them to operate the mall and bring in additional new tenants, particularly on the F&B side.”
Encorp owns around 275ha of landbank, which might last until 2029. About 15ha of this is in Shah Alam's Encorp Cahaya Alam, 259ha in Melaka's Bukit Katil, and 1ha in Perth, Australia.
Rumours regarding FELDA selling its stake is just around the corner! 
Share this

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Stock Screener using Technical and Fundamental criteria
MQ Affiliate
Join the MQ Affiliate Program today to earn rewards

415  465  583  824 

Top 10 Active Counters
 DNEX 0.77+0.015 
 MINETEC-PA 0.035+0.035 
 AT 0.055-0.005 
 FITTERS 0.435+0.02 
 MTRONIC 0.025-0.005 
 MYEG 1.09+0.05 
 LKL 0.125-0.01 
 NWP 0.275-0.015 
 KANGER 0.050.00 
 OPCOM 1.29-0.04