Friday, September 7, 2012

Scomi's Shareholder

Daruk Siew Mun Chuang has surfaced as a substantial shareholder of Scomi group, controlling almost 62.5 million shares or about 5.3% equity interest after acquisition on the open market. Siew is MD of the Oriental Group of Restaurants. He holds stakes in many companies linked to Tan Sri Abu Sahid Mohamed of the Maju group fame.

Siew has about 8.4% in Australia listed Avalon Minerals Ltd, and is deputy chairman of the mineral exploration company.  The largest shareholder of the company is Abu Sahid who has about 15% stake.  Siew is also an independent and non executive director of building materials manufacturer IPmuda Bhd and has about 4.16% equity interest. Abu Sahid holds 8.9% stake and his Maju group has about 22% in IpMuda.

Siew is also an independent non executive director of Kinsteel Bhd and Perwaja Holdings Bhd in which Abu Sahid has substantial shareholding as well. Siew is director of Brigh Focus Sdn bHd, a private vehicle of Abu Sahid.

Abu Sahid had 10.21 million shares or 0.87% stake in Scomi Group as at end April 2012.

Siew came into the group to capitalize on a restructuring which has been ongoing for the past few months.

The first part of the restructuring entails an 18.5 sen capital repayment which has been concluded.

One of the aspects of the exercise is that Scomi has proposed to merge its oilfield service and associate company, Scomi Marine Bhd’s offshore support services, to create a new business unit. Under the plan, Scomi group will sell 76.08% owned Scomi Oilfield to Scomi Marine in return Scomi Marine shares. Subsequently Scomi will make an offer for sale of its Scomi Marine shares.

The proceeds are to pare down the group’s debts. Scomi group had a 42.71% stake in Scomi Marine. As at June 2012, Scomi group had cash and equivalent of about rm256 million and had short term borrowings of rm711 million and long term borrowings of rm387 million.

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