Monday, March 24, 2014

About Protasco

It is a defensive stock given that the company profits highly from its road maintenance and construction division.

Protasco is maintaining about 14000km of federal and state roads under long term maintenance contracts and concession. The outstanding value for these road maintenance and construction works stands at rm1.7 billion which would provide earnings visibility to group for the coming three years from 2013.

Protasco’s crisis is the civil unrest in Libya, which led to the company halting operations in Malaysia in 2011. Protasco has written off rm40 million in provisions over the past two years from 2013 which the company is seeking to claim form the Libyan government.

In spite of the imminent risks, it is not deterred from its work there and is in fact facing considering extending its stay beyond the completion of the suspended works.

Its O&G Division …

Expect its proposed O&G business through the purchase of a 63% stake in PT Anglo Slavic Indonesia (PT ASI) to contribute no less than 15% to its earnings from 2014.

However its entry into the oil and gas sector has been delayed hopes the restated S&P that it signed with an Indonesian party in Jan 2014 will expedite its entry into the sector.

The restated SPA will enable the company to take control of PT-ASI and commence with the exploration, well reactivation and construction of the well in accordance with the agreed development plan approved by PT Pertamina, Indonesia’s state owned oil corporation.

There are approximately 30 wells in the field, some of which may be able to be reactivated.

Under the restated SPW, PT-ASU is required to resolve all outstanding issues within six months from Feb 2014 to the satisfaction of Protasco, failing which the company has the right to terminate the restated SPA.

To recap, Protasco will fund the acquisition via internally-generated funds. The investment represents 24% of Protasco's net assets.

PT ASI's unit, PT Haseba, has a 10-year contract to extract oil and gas from KST Field starting 2004. The extraction works, however, were halted as PT ASI faced financing issues.

PT ASI made a net loss of RM346,000 for the five-month period ended May 31 2013, with net assets of RM31.4 million.

PT ASI has attached a profit guarantee of a consolidated net profit of US$22 million in the next four years from Jan 2014. The deal includes a US$5 million advance to be made by Protasco to PT ASI to conduct exploration, wells re-activation and/or construction of wells.

This is necessary to obtain an extension of the production management partnership agreement between PT Pertamina EP and PT Haseba beyond its expiry on December 14 2013 for a further 10 years to December 14 2024, on the best terms possible.

Its Property Division ….

Tey Por yee is using his two companies (Asdion and Protasco) as his platform to fast track his property development business outside the Klang Valley. In the Sept 2013, the two companies teamed up to develop property in Johor.

Tey is the largest shareholder in both Asdion and Protasco with a 28.13% stake in Asdion and 18.51% stake in Protasco. He also has a 2.44% stake in Nextnation.

Nextnation had acquired am 11 storey office building in Bangsar South for rm64 million.

Protasco also has development in Kajang, a mixed development on 40ha of freehold land with a GDV of rm6 billion.

Besides being an indicator of Tey’s expanding property development interests, the formation of the JV marks a turning point for Asdion which is involved in ICT.

Also, Protasco owns approximately 100 acres of freehold land in Kajang for a mixed development known as De Centrum City. The land’s GDV alone is worth about 15 times more than the company’s market cap of rm420 million as at 31 July 2013.

This RM10 billion De Centrum integrated development in Bangi is essentially the redevelopment of its 100-acre University Kuala Lumpur (IUKL) land acquired at a very low price more than a decade ago.

Property development is still a small part of its business but the group intends to make the segment one of its core businesses. The construction business will remain the largest contributor, contributing rm99.5 million or 96% of its operating profit.

It owns a 40ha plot in Kajang of which it plans a mixed development worth a GDV of rm6.6 billion.

Its Financial Strength …
Protasco is in a net cash position of about rm105 million. Cash and its equivalent stood at rm147.13 million as at end FY2012 while total borrowings amounted to rm42.3 million.

Its healthy balance supports its aggressive business expansion.

Debt to equity ratio stood at 0.697 times as at end FY2012.
It has an unofficial dividend payout policy of 60% of net income every year.

Tey Por Yee became the second largest shareholder with a 15.13% stake in Adison. Tey is also the CEO, MD and executive director of Nextnation, a director of Protasco Bhd and former executive provider of Petrol One Res Bhd.

Tey Por Yee’s Shareholdings as of Oct 20 2013 …
· 18.51% in Protasco;
· 28.51% in Ire Tex Corp Bhd;
· 28.13% in Protasco;
· 13.33% in Hytex;
· 2.44% in Nextnation;
· 18.38% in Malaysian AE Models


Anonymous said...

As the countdown to next week’s Protasco EGM continues, here are some interesting points to ponder for shareholders who may want to consider why Tey Por Yee should be kicked out from Protasco’s board.

Actually all those who have dealings with the Tey Por Yee syndicate and also the public at large should take note of this cautionary tale.

Just to go back a little Tey Por Yee had in 2012 brought to the attention of Protasco a deal to invest in an oil and gas venture in Indonesian concern PT Anglo Slavic Indonesia (PT ASI).

As part of the deal some RM50 million was paid upfront, and as collateral shares in a seemingly unrelated Indonesian company PT Inovisi was pledged as collateral to Protasco.

It should be noted that all this while the Protasco board (the innocent members of the board that is) thought they were dealing with Indonesian companies and businessmen.

Tey Por Yee was allegedly arms length away from the deal. His only interest or so he was to lead the board to believe was with Protasco benefiting from the deal.

Now back to the PT Inovisi shares pledged for the deal. These shares were in the name of Acclaim Investments, a company registered in the BVI with a paid up capital of US$100.

It has now emerged that Acclaim Investments was set up in 2009 with just two shareholders. Guess who? Tey Por Yee with 85 shares and his sidekick Ooi Kok Aun with 15 shares.

(As for February 6, 2014 these two men now no longer own any shares in Acclaim. It is now 100 per cent held by one Lim Sue Fern)

Plus the fact that Tey Por Yee and Ooi Kok Aun also own or have beneficial interests in the various companies with interests in the PT Slavic deal one can now see this tangled web that the two men spun to entangle Protasco and ultimately receive US$27 million in a deal which has just fallen apart.

So not bad lah this magician. He has got the US$27 million, Protasco has lost the money and there’s no deal on the table any more.

You can draw your own conclusion as to who got cheated and who was the victim of what can only be called a giant scam.

So who do you think you would vote out of Protasco’s board?

Anonymous said...

Dirty boardroom fights. Non of them are clean. Chong Ket Pen or Tey or Ooi all same. Wants to fight go arena boxing championship. Disgusting. Sold my shares.

Pen Ket Chong said...

Chong ket pen is a con man. Cheated all his partners last 30 years, siphon money and use company money to disturb other people companies, such sinful guy should just die and get lost. Sell his shares or government will confiscate because of his large money siphoning work. Learn about his from insider

Pen Ket Chong said...

CON man ket pen chong moda operandi is spam PR show his fake face and blackmail his victims Teh and Oi companies. Should be dead and rest for world peace and better humanity. Hisa fter life goes here http://penketchong.blogspot,com

Kenny Chong said...

Other investors and reporters are covering Chong Ket Pen, the Malaysian turn Australian refugee who stolen billion dollars from his country and public money. Some of the coverage could be found here:

Chong Ket pen scam policemen

UK journalist reported scam by Protasco robber Chong Ket Pen

Another insider report of potential scam plan to con police

Ibrahim Nor said...

Protasco oh protasco chong, ungrateful and bites hand that feeds him.

DealTrails said...

The ungrateful reckless staff Chong Ket Pen who bites the hand who feeds him, is an animal. Newspaper editors who told the real story could be found every where online.

His boss Tey Por Yee could be found investing in many listed companies with constructive merger and acquisition to turn around dying companies, or expand the business which ends up reward long term investors, not short term speculators.

Some other trails world wide could also find his contribution to help turn dead lock businesses into new growth, which general market needs corporate advisories to achieve sustainability. Check out some International coverage:

Anonymous said...

To learn more about the venture capitalist Tey Por Yee, here is some Google records:

Dato Larry Tey Por Yee has often been described as an entrepreneur par excellence. He was born in Malaysia on 2nd February, 1976 in a modest family. His parents were not extremely rich. Yet, as on date, Larry Tey Por Yee can be counted amongst the most successful entrepreneurs that Malaysia has seen in the last few decades. He is a successful venture capitalist and angel investor who goes out of his way to help and promote startups in raising money.

Tey Por Yee is the founder and CEO of Nexgram Group of Malaysia with business interests in Malaysia, China, Thailand and Indonesia. He has investments and business interests in information technology, property, telecom, oil and gas, energy, commodities, mining, shipping, social media, internet, packaging and manufacturing industries.

Family members, friends, acquaintances and business associates of Dato Larry Tey Por Yee know and address him as Tey Por Yee, Larry Tey Por Yee and Dato Tey Por Yee. Being as affable as Tey Por Yee is, he responds to all these names with as much ease and affection as could be expected of the modest out of all highly successful entrepreneurs around.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.