Posted by splendid_ignorance > 2014-06-11 11:05 | Report Abuse

taciturn, good info. just a minor correction. If the shares which are bought-back are kept as treasury shares, those shares will not dilute dividend distribution as treasury shares are not entitled to dividends.

Posted by powerwk > 2014-06-11 11:07 | Report Abuse

taciturn are right for the share buy back. Also to add, a company will decide to do that because they feel the share price are undervalue and it good time for them to buy and keep for future use (note: since they know what is coming in near future, e.g. huge project; good sale of land in discussion and etc). They usually will only sell it when they need cash for expansion and project provided they gain profit from selling too...

Posted by splendid_ignorance > 2014-06-11 11:19 | Report Abuse

wongwee. Share buybacks are important signals to the market about management's expectation of the company so it is relevant. Or would u rather discuss rumours ;)

Posted by Intuition > 2014-06-11 11:22 | Report Abuse

share buy back to push the market price so that those employees can exercise their options.

Posted by powerwk > 2014-06-11 11:29 | Report Abuse

wongwee - sound good..... why not you start the so call good topic and company related info and I believe everyone will jump into your topic and give comment if interested them????

Posted by crawler > 2014-06-11 12:11 | Report Abuse

how do you know what posting here is rumours and why not news to be unfold? How sure you are that there's no truth behind what was said?

Posted by taciturn > 2014-06-11 13:05 | Report Abuse

splendid_ignorance: Whoops, I missed that part about treasury shares. Knew I was forgetting something. :p


powerwk: I, or an associate will definitely attend the EGM (excluding force majeure :p). Already drafted/drafting a list of questions to be asked either on the open floor or if we can corner the boss/senior management before/after the EGM.

Will of course reproduce any of the answers that we feel are relevant here.


crawler: Heh, and you're the one saying I'm naive for waiting for details in black and white? Now it's wait for the news to unfold first?


Also, just to clarify, if you have questions for Benalec, you could always contact them to find some answers. Don't think they're really answering their investor relations emails at the moment, but you could always give them a call and speak to the IR manager. His name is Victor.

The phone number/IR e-mail address is available on Benalec's website.

Posted by thinkkfully > 2014-06-11 13:30 | Report Abuse

Thanks taciturn,splendid_ignorance, Intuition~ for explaining the buyback activity~~ :)

Posted by kurangmanis > 2014-06-11 14:56 | Report Abuse

Hi, when I read the news, penang reclamation is to be carried out by E&O itself? May I know why does it has anything to do with benalec? Thank you very much for sharing.

Posted by taciturn > 2014-06-11 15:06 | Report Abuse

kurangmanis: E&O has the concession rights to reclaim the land (and do development) for the area that's known as Seri Tanjung Pinang Phase 2 (STP2).

E&O is of course a major property developer, they're not reclamation specialists. So the assumption here is that they'll contract out the reclamation works. When that's done, they'll build the properties on their own/contract it out.

As there are very few reclamation specialists in the country, Benalec's prospects of getting the contract/a portion of the contract (as a subcontractor) is pretty good. This is of course assuming that the field isn't opened to foreign reclamation specialists.

Posted by taciturn > 2014-06-11 15:31 | Report Abuse

Does anyone know who did the reclamation work for Seri Tanjung Pinang Phase 1? Been trying to figure that one out as I was ruminating on kurangmanis's question.

To my knowledge, it wasn't Benalec that did it. Wondering who did.

Posted by taciturn > 2014-06-11 16:24 | Report Abuse

zero: Thanks. I was guessing it was something like that hence why I'm only 50-50 on Benalec getting STP2.

Eh, why'd you delete your comment?

Posted by zero > 2014-06-11 16:50 | Report Abuse

@taciturn - sorry about that! must've made you look like you're talking to yourself :p

I must be getting old; cannot confirm if that's for Pengerang (Dialog) or STP 1... so i thought i better shut up la than say something i'm not so sure about ;)

Posted by taciturn > 2014-06-11 17:00 | Report Abuse

zero: Heh, all good. So far I can't find evidence that reclamation STP1 was done by a local company (at least not as the contractor/principal subcontractor). Chances are it's still a foreign party who did it.

Will look into it later on.

Posted by powerwk > 2014-06-11 20:37 | Report Abuse

I try to search this before but couldn't find either. Need to check with the E&O folks.

kurangmanis and other - I read RHB report yesterday and here I copy and paste partial reporting from them. Well that what they say in the summary report of E&O


E&O’s masterplan for STP2 was endorsed by the Penang state
government yesterday. After this, the tender for reclamation is expected
to be out in late 3Q, and works could kick off in 4Q. We believe the
market has not fully priced in the land value of STP2, and this
announcement should be a boost to its share price. Our assumption of
MYR400 psf still suggests further upside to RNAV. Maintain BUY.

 Endorsement is in hand. Soon after the 9.9% share acquisition by its
MD Dato’ Terry Tham on 28 May, Eastern & Oriental (E&O) received the
endorsement from the Penang state government for its Seri Tanjung
Pinang 2 (STP2) masterplan. We are not surprised with the news, as this
came in line with its guidance. We also said in our 3 June report “Further
Catalysts For Share Price” that the state should draw greater comfort
after Dato’ Terry Tham raised his stake to 15% recently.

 Tender for reclamation in late 3Q, works to start in 4Q. After the
endorsement, the tender for the reclamation project should come in late
3Q, and works could begin in 4Q. Currently, E&O is working on an
environmental management plan (EMP) for the entire 891 acres,
according to the guidelines specified in the detailed environmental
impact assessment (DEIA) report approved by the Department of
Environment (DOE). The state’s approval still needs to be obtained for
the EMP to ensure that the plan conforms to the technical requirements,
before being incorporated into the tender document. We do not foresee
any hiccups, as this is just part of a procedure.

Posted by powerwk > 2014-06-11 20:38 | Report Abuse

If they open for tender then at least there are chances Benalec can benefit from it if they manage to secure it :-) since they are the expert in reclamation project and have all the tools and skills needed to do so :-) Well time will tell if they can win that from E&O later.

Posted by taciturn > 2014-06-11 21:11 | Report Abuse

powerwk: With a job of this size though, you find that foreign players would definitely be interested to come in.

Zero (before he deleted his comment, since he wasn't sure if he was mixing it up with Johor :p) said that STP1 could have been done by one of the Dutch/Belgian firms.

To give you an idea of how big these foreign firms can be:
http://en.wikipedia.org/wiki/Jan_De_Nul
http://en.wikipedia.org/wiki/Royal_Boskalis_Westminster
http://en.wikipedia.org/wiki/Van_Oord
http://en.wikipedia.org/wiki/DEME

Each of them has revenues in excess of EUR1.5 billion a year, and of course with an impressive fleet at their service. Whichever firm that did STP1 will probably have an edge against its competitors for STP2 (relationships etc, and assuming that they did their job well - after all, we always prefer to deal with people we know rather than those we don't).

Some people probably won't like me highlighting this here, but I'd prefer to be realistic and get as much information as possible.

Posted by powerwk > 2014-06-11 23:02 | Report Abuse

Well, all these info can be use and turn it to a smart question to ask Benalec during the AGM now they strategies themselves for the STP2 reclamation tender if they are interested :-)

Posted by taciturn > 2014-06-11 23:28 | Report Abuse

powerwk: Yep, good point.

wongwee: Benalec will probably be in the running. How good their chances are is something I have no idea of at this time.

Posted by speakup > 2014-06-12 10:41 | Report Abuse

look like market doesnt think benalac will give special dividend from land sale

Posted by zero > 2014-06-12 11:03 | Report Abuse

investors will hammer the stock down if Ben gave out special dividends instead of retaining the earnings; cannot give out Brim Brim Broom Broom candy all the time la

Posted by zero > 2014-06-12 11:03 | Report Abuse

anyway, guys, when was the Term Sheet due again on Tj Piai?

Posted by wongwee > 2014-06-12 11:37 | Report Abuse

assuming Benaleu is not successful, any impact on the price???

Posted by taciturn > 2014-06-12 11:57 | Report Abuse

speakup: Considering that they've only received the 10% deposit from the RM235m, hoping for a special dividend anytime soon is a bit optimistic. The progress payments will go on until 3Q2016.

I would strongly urge you to take the time to read the EGM circular on the land sale (http://www.bursamalaysia.com/market/listed-companies/company-announcements/1652405) to understand how and when the progress payments are expected.


zero: Term sheet expired yesterday. Following past precedents, they would renew it the next trading day after. Meaning we should see the announcement (for renewal) sometime today.


wongwee: Hard to say. There's also the 1MY Strategic Oil Terminal job (1000 acres), the rest of Tanjung Piai/Pengerang reclamations to consider. If none of them happen anytime soon, then I would say we're banging on them doing further land sales in Melaka/Pulau Indah (over 500 acres to go).

If you're looking for short term price movements, in all honesty I'd tell you that reading this forum probably won't help at all. Almost every prediction I've seen (sure hit RM1, sure hit RM1.10, sure hit RM1.20, sure hit RM1.50 etc) has been way off the mark, or they have that excellent qualifier added at the end of the statement, i.e. "soon").

If you're looking at the long term, prospects are still decent/good.

Posted by taciturn > 2014-06-12 14:37 | Report Abuse

Okay, just got off the phone with a friend who checked on this.

STP1 was done by Tidal Marine Engineering S/B. This firm is owned by Dr Nik Mohd Kamel, who's fairly well known as the principal of Dr Nik and Associates S/B.

We're a bit stunned at this in all honesty. Didn't think that Tidal Marine had the financial firepower to handle a job of that size (239 acres).

[Incidentally, good last minute memory recall and deleting that post, Zero. XD]

And it's confirmed that the tender to be called for STP2 will be an international tender.

Posted by sky4524 > 2014-06-12 15:02 | Report Abuse

most of the projects carried out by benalec just focus on south peninsular, wondering benalec is interested in stp2 that is far away in penang.

Posted by taciturn > 2014-06-12 15:17 | Report Abuse

sky4524: Don't think that distance is really that much of an issue. Shifting of vessels along the coastline isn't too hard a thing for them to do.

Especially when you consider the amount of money involved for a job of this scale, I'm sure Benalec would like a slice of (if not the whole) the pie.


Been reading up more on STP1 and am guessing that Benalec didn't participate in a major way since physical works at the site started in 1998.

Can't tell how big Benalec was back then (IPO financials go back only to 2008), but am guessing it was still a very small firm at that time.

Posted by GoGoBenalec > 2014-06-12 18:27 | Report Abuse

Further to the announcements made on 12 March 2013, 12 June 2013, 17 June 2013, 11 September 2013, 12 December 2013 and 19 March 2014 with regards to the Term Sheet, the Parties have mutually agreed to extend the period of validity of the Term Sheet for an additional duration of six (6) months from the expiry date to finalise the terms and conditions of the Sale and Purchase Agreement.

The extended duration shall come into effect from 12 June 2014 until 11 December 2014 or such other date as the Parties may agree in writing.

This announcement is dated 12 June 2014.

Posted by GoGoBenalec > 2014-06-12 18:28 | Report Abuse

Extended another 6 months??

Posted by taciturn > 2014-06-12 18:31 | Report Abuse

Yep, I think it was to be expected. EIA still hasn't been approved after all.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1655213

Posted by Ring > 2014-06-12 18:47 | Report Abuse

Sales & Purchase Agreement will be ready in 6 mths time so belief they have got EIA approval... am i right?

Posted by taciturn > 2014-06-12 19:06 | Report Abuse

Ring: Nope. This is the third 6 month extension they've done.

The previous two 6 month extension announcements.

12 June 2013
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1320201

12 December 2013
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1490669


And they do not have the EIA approval as yet (this is confirmed). Hence the extensions are not because of pricing issues between Benalec's subsidiary and 1 MY SOT, but because there's no point coming to a price agreement if you still don't have the EIA approval to go ahead and start work.

Posted by powerwk > 2014-06-12 20:02 | Report Abuse

taciturn - by reading the comment, one of them from you...

"And it's confirmed that the tender to be called for STP2 will be an international tender." - This mean the STP2 tender, Benalec 100% won't participate in tender? Sorry I'm miss understand your statement.

Posted by taciturn > 2014-06-12 20:11 | Report Abuse

powerwk: An international tender means it's open to everyone, doesn't matter what country you're from.

A local tender would be say open only to Malaysians/Malaysian majority owned companires.

So yes, Benalec can (and will probably) submit a bid. But they'll also be competing against the big guns from other countries.

Posted by Ring > 2014-06-12 20:18 | Report Abuse

Tks taciturn.

Posted by GoGoBenalec > 2014-06-12 21:34 | Report Abuse

Lost my direction now, keep??

Posted by GoGoBenalec > 2014-06-12 22:17 | Report Abuse

Sell now take profit then change my name or keep under pillow? Dilemma...

Posted by taciturn > 2014-06-12 22:26 | Report Abuse

Long term keep.

Short term, I have no clue.

Posted by powerwk > 2014-06-13 00:43 | Report Abuse

GoGoBenalec - another advice here if you like it. Sell half (take the profit) and keep half (expect for Benalec to win the bid and growth from there). At that time you can decide to go in more or not.

Well, that another alternative for you to think off.....

Personally, I will keep for long term until they make a big and worst mistaken with too many issues around :-)

Posted by GoGoBenalec > 2014-06-13 09:06 | Report Abuse

powerwk & taciturn - Sleepless yesterday and decided continue the game, cheer everyone and thanks for sharing

Posted by Dkwee > 2014-06-13 09:10 | Report Abuse

Opening red...red...really shit....!!!!!

Posted by wongwee > 2014-06-13 09:11 | Report Abuse

u lose alot???

Posted by leo218 > 2014-06-13 09:12 | Report Abuse

did u guy see the announcement...http://www.bursamalaysia.com/market/listed-companies/company-announcements/1655213

Posted by leo218 > 2014-06-13 09:13 | Report Abuse

land deal delayed...

Posted by Ring > 2014-06-13 09:15 | Report Abuse

Sharks using world cup as an excuse to push price just dont bother you have bullets got confidence in this stock just buy but dont sell..my2c.

Posted by splendid_ignorance > 2014-06-13 09:26 | Report Abuse

2cents.

I think taciturn's write-up has been quite realistic and consistent. And he has been proven right in his prediction that given the short turnaround time to sort out the issues, the validity of the term sheet will be extended.

Think if people bothered doing their homework they will be aware that there was always a high probability that the term sheet will be extended given that the company has just recently been able to sort out their issues.

If it is true as what taciturn said, that the issue is on the EIA rather than an agreement in price, I do believe it is very probable that things could be settled in 6 months. Pricing is always a key determinant factor and it is good if that is out of the way. Now, the royalty has been quite edgy over the delay in EIA so I do think this would pressure the relevant department to try to expedite the process. How fast is anyone's guess. But please aware that the term sheet signed is binding. Hence, any cancellation of it will have legal consequences to the other party so this is unlikely. Also be aware that E&O's STP2 EIA took awhile before approval and look how the share price have reacted once they got it.

I would hold for now as I am terrible with timing. No one will know when they will get the EIA approval and I wouldn't take that risk.

Posted by Dkwee > 2014-06-13 10:25 | Report Abuse

@wongwee bought only 20 lots @ 1.19 last week after reading someone's posting ..buta buta now paper loss ard 1.5k....but will hold until I make profit...cheers..

Posted by splendid_ignorance > 2014-06-13 11:01 | Report Abuse

wongwee, i think dkwee was tellin you what he bought

Posted by qwertyuiop > 2014-06-13 11:02 | Report Abuse

lol people not saying you la. please read properly before scolding.

Posted by qwertyuiop > 2014-06-13 11:44 | Report Abuse

Very well, Benalec is very prospective, FIFA + extension of EIA might cause short-selling, hold for mid term or long term will be a correct move for benalec. Anyway, its just my opinion, your money your choice, you should have to decide yourself whether you are a long term player of short term player for benalec or any other counters before you buy in.