Malaysia: JCorp to issue RM3b sukuk to redeem bonds
Johor Corp Group (JCorp) will issue RM3 billion worth of sukuk wakalah to redeem the final series of bonds issued in 2002, which matures on July 31.
The sukuk issuance is expected in May with the underlying assets being crude palm oil and syariah-compliant shares, and JCorp is looking at five, seven and 10-year terms.
Its president and CEO Kamaruzzaman Abu Kassim said several local investment banks have been shortlisted for the corporate exercise.
Speaking at a press briefing yesterday, he said the proposed issue would be used to finance debt of RM3.2 billion maturing in July, as well as to finance new growth drivers and continue its role as the development agent of the state.
Commenting on the proposed takeover of QSR Brands Bhd and KFC Holdings Bhd by JCorp and CVC Capital Partners Asia III Ltd, Kamaruzzaman said it is still very much in progress, and has taken longer than anticipated as there are issues to be resolved and terms and conditions to determine.
He said it is working on a definitive agreement and "ensuring all interests are covered".
He added that discussions with Yum! Brands Inc, franchisor of KFC and Pizza Hut worldwide, are ongoing and while their main concern is growth of the business, they "understand the proposal" and have no objections thus far.
On JCorp's outlook for 2012, Kamaruzzaman said it can sustain its 2011 performance.
"We're cautiously optimistic and we believe we can get double-digit growth, about 10-15% in all our businesses," he said, adding that its 2011 financial results were its best ever since its establishment over 40 years ago.
For the financial year ended Dec 31, 2011, JCorp recorded a 55% jump in net profit to RM1.1 billion on a 4% rise in revenue to RM7.8 billion.
Contribution of all businesses to group revenue rose 29% to RM9.7 billion from RM7.5 billion.
The plantation sector posted a profit of RM1 billion, up 42% from RM732 million previously, the food sector RM296 million, property RM273 million, intrapreneur division RM43 million and healthcare, RM14 million.