JCorp - THE LATEST DEVELOPMENT

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Wednesday December 29, 2010

Can JCorp manage debt without asset sale?

BEHIND THE NEWS
By CECILIA KOK


cecilia_kok@thestar.com.my

PETALING JAYA: For those still craving for a bite of its “finger lickin' good” business in Malaysia, Johor Corp (JCorp) has this to say: “QSR Brands Bhd and KFC Holdings (M) Bhd are not for sale.”
Any speculation of its intention to sell those prized assets must have to be mooted by people with “malicious intent”, JCorp's newly appointed president and chief executive officer Kamaruzzaman Abu Kassim said in a statement issued on Monday to quash rumours that the state investment arm was planning to sell QSR and KFC to finance its debt.


JCorp is the ultimate shareholder of the lucrative fast-food businesses of QSR and KFC. Its interests in both the companies are held through its 53%-owned subsidiary Kulim (M) Bhd, whose main business is in the plantation sector. Kulim owns a 57.5% stake in QSR, which in turn, owns a 50.6% stake in KFC.
As one of the country's largest state economic development authorities, JCorp at present boasts about 250 companies in its stable. Besides those embroiled in the recent takeover rumours, the company's other key assets also include private healthcare service provider KPJ Healthcare Bhd; property development companies Johor Land Bhd and Damansara Realty Bhd; intrapreneur venture business Sindora Bhd; as well as the London-listed plantation company, New Britain Palm Oil Ltd (NBPO). (Kulim owns about 50% of NBPO)
Market observers say that while JCorp's recent clarification has managed to quell speculation of QSR and KFC sale, it has not entirely rule out the possibility of JCorp needing to dispose of some of its other key assets to pare down its mountain of debt.


According to JCorp's latest annual report, its total debt as at Dec 31, 2009, stood at a whopping amount of RM6.62bil. Of that, RM3.6bil is due for repayment in July 2012.
“It remains to be seen if JCorp could afford to resolve this huge amount of debt without having to embark on some asset sales,” an analyst says.


Kamaruzzaman in a recent note has maintained that JCorp's debt obligations remain manageable for the company, and that CIMB Bank Bhd and Malayan Banking Bhd, which own the bulk of the company's soon-to-expire debt, have been appointed as its financial advisers.


He has also earlier informed the press that JCorp already has in place a debt-restructuring plan, details of which will be revealed next year. It is understood that refinancing could be an option that the company is going for, as the route will not necessarily result in the need to sell out any of JCorp's assets. This is important to maintain the company's strategic interests.


But analysts point out that in order to qualify for the option, JCorp still has to prove that it has a compelling cash flow story to tell the bankers. But as it stands, analysts say, this is the very element that JCorp lacks.
The company's annual report, for one, revealed that JCorp only had RM705mil in cash as at the end of last year. On top of that, it had to fork out around RM500mil as interest payments to service its loan RM1.7bil as loan repayments. and


“Creditors are inclined to see at least a partial repayment of a huge debt as proof of the company's commitment to settle its loan,” an analyst says.


“In that sense, it's going to be a challenge for JCorp to find ways to prove its cash flow position and commitment in repaying its debts based on its prevailing balance sheet,” he adds.


While JCorp is asset rich, considering its total assets worth of more than RM14bil as at the end of last year, the company only managed to book a paltry RM5mil in dividend receipts during the financial year of 2009.


This problem is due to JCorp's structure of the ownership of its assets: the company does not own most of its prized assets directly. To put that into perspective, any dividend declared at the KFC and QSR levels, for instance, tend to get “trapped” at Kulim's level. JCorp will only get to enjoy a portion of the money declared at the KFC and QSR levels.


In any case, it is argued that JCorp has other assets that can be sold. One is its direct stake of 48.35% of KPJ Healthcare Bhd, with Khazanah Nasional Bhd being the likely buyer. The other is the NBPO, which it owns through Kulim's holding of a 50% stake in the company.


One thing for sure, some punters will still speculate on the potential sale of JCorp's other assets until the company unveil the details of its debt-restructuring plan.

source: http://biz.thestar.com.my/news/story.asp?file=/2010/12/29/business/7697667&sec=business
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JCorp nafi cadang jual QSR Brands, KFCH

SEGAMAT - Menteri Besar Johor, Datuk Abdul Ghani Othman menafikan Johor Corporation (JCorp) bercadang untuk menjual kepentingannya di dalam QSR Brands Bhd dan KFC Holdings (M) Berhad.

Beliau yang juga adalah Pengerusi JCorp berkata, isu cadangan melupuskan kepentingan JCorp di dalam kedua-dua syarikat itu tidak timbul sama sekali.

JCorp di dalam satu kenyataan kelmarin berkata, ia tiada rancangan untuk menjual aset berharganya, QSR Brands Bhd dan KFC Holdings (M) Bhd, yang dipegang menerusi anak syarikatnya Kulim (M) Bhd.

“Keputusan daripada segmen ini menyumbang dengan ketara, sekali gus menyaksikan 47.5 peratus dan 44.1 peratus masing-masing kepada pendapatan dan keuntungan sebelum cukai Kulim dalam tahun kewangan yang lepas.

“Adalah satu keputusan tidak bijak untuk melepaskan ‘perniagaan tunai’ yang mendatangkan keuntungan kerana kami mungkin tertekan mendapatkan pelaburan alternatif yang menyediakan pulangan yang sama ataupun lebih baik,” katanya.

JCorp mempunyai beberapa aset bernilai dalam lingkungan kumpulan. Walaupun ia tidak memiliki kebanyakan daripada aset ini secara langsung, ia menguasai 53 peratus Kulim yang memiliki 57.5 peratus QSR. QSR sebaliknya pula menguasai 50.6 peratus KFC. - Bernama 

sumber: http://www.sinarharian.com.my/sh/johor/content/story8563151.asp
            sinar harian Rabu 29 Disember 2010
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YB DR MOHAMMAD TASLIM,ADUN MAHARANI,PERNAH BERTANYA  KEPADA YAB MENTERI BESAR JOHOR TENTANG BON JCorp 

 DI PERSIDANGAN DEWAN NEGERI JOHOR PADA  

8 SEPTEMBER 2009

Soalannya:

JCORP MENERBITKAN BON BAGI MENYELESAIKAN HUTANG RM4.032 BILION DAN KERAJAAN JOHOR MENJADI PENJAMINNYA.BON AKAN DITEBUS BAYAR 2012 ADALAH RM4-376 BILION.BERDASARKAN KEUNTUNGAN TAHUNAN SEBELUM CUKAI KUMPULAN JCORP BOLEH BAYAR RM4-376 BILION? APA PENYELESAIANNYA?


INILAH JAWAPAN OLEH YAB MENTERI BESAR JOHOR:

Johor Corporation telah menerbitkan bon di dalam Pelan Induk Penstruktursn Korporat (PIPK) Johor Corporation bagi menyelesaikan hutang sejumlah RM4.032 bilion di mana Kerajaan Negeri Johor menjadi penjaminnya.

Di bawah PIPK ini,terdapat 4 jenis bon yang telah diterbitkan iaitu Bon Bai' Bithaman Ajil (Guaranteed Redeemable Bond), Bon Bai' Bithaman Ajil (Redeemable Revolving Credit Facility) dan juga Perjanjian Bayaran Berjadual (Schedule Payment Agreement).

Penebusa bon-bon ini telah ditetapkan di dalam tiga siri matang di mana Johor Corporation telah berjaya menebus Bon Siri 1 yang matang pada 31 Julai 2007 berjumlah RM393.76 juta dan Siri 11 yang mayang pada 31 Julai 2009 berjumlah RM694.98 juta.Sementar itu,jumlah Bon Siri 111 yang akan matang pada 31 Julai 2012 adalah berjumlah RM3.58 bilion.

Sehingga 31 Disember 2008.jumlah keseluruhan aset nyata dan asrt tidak nyata yang dimiliki Johor Corporation adalah senabyak RM4.934 bilion sepertiman dicatatkan di dalam Laporan Tahunan Johor Corporation Berakhir 2008.Sebahagian daripada aset-aset ini telah dikenalpasti untukd ijual dan hasil penjualan dan keuntungan yang diperoleh akan disakurkan untuk membiayai bon pada tarikh matang yang akan datang.Walau bagaimanapun Johor Corportaion bercadang untuk menjual hanya sebahagian darpada aset-aset yang telah dikenal pasti ini iaitu dengan anggaran hasil jualan sebanyak RM1.0 bilion sahaja.

Penjualan nsebahagian daripada aset-aset yan dimilikinya adaklah perlu memandangkan pendapatan daripada operasi dan juga dividen adalah terhad kepada kegunaan untuk kos kewanhan dan juga operasi.Penjualan sebahagian aset tersebut juga dalah kerana Johor Corporation berhasrat untuk membiayai semula pinjaman (Refinance) sebanyak RM2.60 bilion dengan pihak-pihak bank yang berminat untuk memberikan tawaran pinjaman yang lebih baik dari segi kadar faedah dan skim bayaran balik yang lebih fleksibel serta tempoh bayaran balik yang lebih panjang bergantung kepada kemempuan tunai Johor Corporation di masa-masa akan datang.




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