Benalec

With the charges now (Dec 2013) dropped, the parties intend to immediately negotiate and finalize the terms of a full and final global settlement under HOA with a view to execute the agreement within a month of the announcement.

The change in management and lawsuits will affect market sentiment as they are a distraction from Benalec’s key catalyst.

It is business as usual for Benalec in the meantime because it has a professional team in place. The main re rating catalyst for Benalec is its reclamation job in Tangung Prai, Johor.

Benalec has a binding term sheet with the State Secretary, Johor and 1MY Strategic Oil Terminal Sdn Bhd to undertake the reclamation and sale of 405 ha of land off the coast of Tanjung Piai.

Once the SPA is signed, it should be reflected soon after in the company’s earnings as the works can start quickly.

This is important for Benalec because it slipped into red in the first quarter ended Sept 30 for the first time since it was listed in early 2011.

It is believed that the loss is temporary. In the near term,, order book replenishment took a back seat.