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Friday, March 9, 2012

Naim Indah says no new plans for more projects

PETALING JAYA: Naim Indah Corp Bhd (Nicorp) denies there are plans for new development projects except for what had been agreed upon with Generasi Cipta Sdn Bhd last month.

The property and timber company was responding to a report on Monday in a Chinese daily saying that Nicorp's new chief executive was expected to bring in a new development plan worth RM500mil.

“The directors and major shareholder of Nicorp wish to clarify that there is no proposal from Datuk Raymond Chan to bring a new development plan into the company as at to date, apart from the heads of agreement (HoA) entered into with Generasi Cipta Sdn Bhd which was announced on Feb 10, 2012,” it said in the announcement on Bursa Malaysia.

On the sharp increase in its share price on Wednesday, it said that the company was not aware of any reason for the movement except for the update regarding the Generasi Cipta HoA.

Nicorp announced on March 7 that it had received authorisation from Generasi Cipta “to initiate, negotiate and finalise other investment opportunities in the best interest of Nicorp except on property investments and property development business”.

The counter gained 26% on Wednesday to close at 65.5 sen from 52 sen a day before. Yesterday, the counter dipped 3.8% to 63 sen.

On Feb 10, Nicorp announced that it entered into a HoA with Generasi Cipta to buy 60% of Sagajuta for RM240mil.

Following that, Nicorp also intends to buy the remaining 40% stake in Sagajuta that is not owned by Generasi Cipta on similar terms as agreed between Nicorp and Generasi Cipta.

Nicorp added that the parties involved did not intend to undertake a mandatory general offer, seeking an exemption from the Securities Commission from it.

Chan is one of the directors of Generasi Cipta and also the managing director of Sagajuta Group and 1Green Enviro Sdn Bhd.

He was appointed Nicorp chief executive on Feb 29. On the same day, Sagajuta's former executive director Tan Tiang Lai was appointed Nicorp executive director.

Early in February, Chan bought a 12.11% stake in Nicorp from the then largest stakeholder Crest Energy Sdn Bhd. With the Sagajuta acquisition, he and several others stand to own up to 33% stake in Nicorp via a reverse takeover from his private company Sagajuta (Sabah) Sdn Bhd.

By The Star

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