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KPS declares special dividend of 27 sen

KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd (KPS) will pay out a special dividend of 26.67 sen per share amounting to RM99 million funded with proceeds from the divestment of its stake in Kumpulan Hartanah Selangor Bhd (KHSB).

In a filing with Bursa Malaysia yesterday, KPS announced that the entitlement date for the special dividend will be on Oct 4, while its payment date is on Oct 25.

“The distribution follows when KPS receives the cash payment in early October,” KPS head of group strategic planning and investment Kevin Lee told reporters after the company EGM yesterday.

The company’s shares surged to RM2.39, up 17 sen or 7.7% yesterday after it declared the special dividend for its financial year ending Dec 31, 2013.

At the EGM, KPS shareholders had approved the disposal of a 56.57% stake in KHSB to Selangor state investment arm Kumpulan Darul Ehsan Bhd (KDEB) for RM212.8 million cash.

Lee noted that the stake divestment in KHSB will no longer make KPS a property developer. However, KPS will still retain some property investments.

He said KPS’ water and hospitality division would remain the group’s bread and butter, contributing about 60% to its top line.  

Out of the balance of the divestment proceeds, RM18 million has been earmarked for repayment of borrowings, while RM1.1 million has been allocated for defrayment of expenses. KPS has also set aside RM38 million for working capital and RM56 million for new investments.

“There are investments that we are currently looking at, but we are still at the preliminary stages,” said Lee, adding that the group will be looking at the sectors which it is currently involved in.

KPS senior independent director Mustaffa Kamil Ayub, who chaired the EGM, said: “Future investments include expanding the operations of our telco as well as oil and gas (O&G) segment”.

On the telco operation, KPS holds 30% in Ceres Telecom Sdn Bhd, which currently provides prepaid services.

Lee said future plans for Ceres Telecom include expanding into data services, which is expected to be profitable and contribute to the group by 2016.

He noted that although the telco industry is seen as a competitive market, the group and shareholders believe that there is room for KPS to enter the industry.

For its O&G business, KPS owns 40% stake in NGC Energy Sdn Bhd, which is involved in the LPG distribution business and is already profitable, said Lee.

 

This article first appeared in The Edge Financial Daily, on September 19, 2013.

 

 

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