Kurasia Dec 2011

Kurasia: It announced that it had submitted an application to BNM for the approval of MOF to enter an agreement to possibly dispose of its wholly owned subsidiary Kurnia Insurans Bhd to AmG Insurance Bhd. It was reported that KAB would most likely sell KIMN at around 2.5 to three times the book value of the company. The book value is rm720 million as at March 31, 2011. The deal would be around rm1.8 billion to rm2.2 billion.

Gamuda Dec 2011

Gamuda: It is facing problem of depleting order book as its existing construction projects are reaching the tail end and on expectations of possible hiccups on the execution of the MRT project. The depleting construction order book would translate into weaker future earnings. For now Gamuda has some rm2 billion worth of outstanding building jobs, of which a large chunk comes from the Ipoh-Padng Besar double tracking project which is 71% completed. Nonetheless, the silver lining at this juncture is that MMC-Gamuda JV in which Gamuda holds 50% stake stands a relatively chance pf securing the tunneling works for the Klang MRT project.

As at Oct 31, 2011, Gamuda had cash of rm1.39 billion against debt of rm2 billion, translating into a net debt of rm613 million. Net assets per share stood at rm1.85.