About Takaso ...

Dated Jan 2012

The company, whose core business is condom manufacturing, will acquire a Papua New Guinea company that has a timber licence and concession, in a bid to diversify its business. It was reported that Takaso would acquire Kayumas Plantation PNG Ltd, which holds the rights to a net loggable area of 40,000ha of timber, possibly worth up to RM500mil, in Inland Pomio, East New Britain Province , Papua New Guinea .

It is also in preliminary discussions to collaborate with Golden Pharos Bhd and an annoucement will be made upon the execution of any documents with Golden Pharos. Golden Pharos, which is 61.2% owned by Terengganu Inc Sdn Bhd, was likely to form a collaboration with Takaso and together, both parties might obtain a state-related iron mining project.

Sources familiar with the matter said Golden Pharos, which is 61.2% owned by Terengganu Inc Sdn Bhd, was likely to form a collaboration with Takaso and together, both parties might obtain a state-related iron mining project. Both companies have had serious discussions.

Terengganu Inc was set up by the state government to manage its investments.

It is unclear at this stage how a collaboration between Golden Pharos and Takaso will pan out whether it will be a pure joint venture or will require changes in shareholding. No specific details on the mining project are available.

The slow progress in the formal award of iron-ore mining rights by the Terengganu government has caused discontent among several domestic steel players and prospective foreign investors. Some local and foreign investors are clueless whether the official award of the mining concessionaires will finally be given out in 2012.

The Terengganu government is believed to have agreed in principle late 2011 to award five to six companies including joint-ventures with foreign parties, iron-ore mining concessions in Bukit Besi near Kemaman. The companies include Perwaja Holdings Bhd and Eastern Steel Sdn Bhd, a joint-venture between Hiap Teck Ventures Bhd, and China-based steel group, China Shougang and Chinaco Investment Pte Ltd. Another company widely speculated to get the mining concession is a joint venture between condom maker Takaso Resources Bhd and Terengganu-state owned timber company, Golden Pharos Bhd.

Takaso is a condom maker but is looking to diversify its businesses and review its corporate structure which may involve the appointment of new board members to boost profits. Golden Pharos is a resource-based company involved mostly in timber.

Takaso made a net profit of RM167,000 in its most recent quarter ended Oct 31, against quarters of consecutive losses as the eurozone crisis hit its largest export markets. Golden Pharos made a net profit of RM1.36mil in its latest quarter compared with a net loss of RM1.59mil for the same period a year earlier.

Its ED Chin Boon Kim has emerged as a substantial shareholder after he acquired a 4.62% stake. After the acquisition he holds 5.44%.