Its stocks portfolio has seen their share values rise on stronger palm oil prices and earnings and work/ project flows
By DASHVEENJIT KAUR / Pic By MUHD AMIN NAHARUL
SOME of Urusharta Jamaah Sdn Bhd’s stocks have soared since the transfer from Lembaga Tabung Haji (TH) was done at the end of December 2018.
Urusharta Jamaah stocks portfolio, like FGV Holdings Bhd and Dayang Enterprise Holdings Bhd, has seen their share values rise on stronger palm oil prices and earnings and work/project flows.
Oil and gas group Dayang Enterprise, which Urusharta Jamaah holds a 7.92% stake, has experienced a 429% increase in share price since Dec 31, 2018.
Price data show Dayang Enterprise was trading at 51 sen when the transfer took place and last closed at RM2.90 yesterday. Its market value has also more than tripled from RM512 million to RM3.04 billion currently.
Planter FGV’s, in which Urusharta Jamaah has a 7.78% stake in, share price has gained as much as 88% since Dec 31, 2018, as it rose from a low of 68.5 sen in early 2019 to close at RM1.52 at the end of December 2019.
Its market cap almost doubled from RM2.61 billion in 2018 to RM4.89 billion as of yesterday. Still, it is substantially below its IPO price of RM4.45.
E-government service provider Datasonic Group Bhd, where Urusharta Jamaah holds a 9.2% share in, has soared as much as 290% since the end of December 2018.
In December, its share price jumped 43.7% to end the year at a three-year high of RM1.48. The counter closed at RM1.59 yesterday, compared to 41 sen in December 2018 as its market value rose to RM2.13 billion from a mere RM546 million 13 months ago.
Datasonic received a letter of extension to supply 6.1 million raw MyKads and MyKad consumables to the National Registration Department.
Other stocks in the Urusharta Jamaah portfolio that have performed well since the takeover include IJM Corp Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE).
MMHE, in which Urusharta Jamaah has a 6.6% holdings in, has risen 41.28% since December 2018 to 74.5 sen at close yesterday, driving its market value to RM1.23 billion from RM872 million.
Construction and property development giant IJM’s share price increased by 39% over the same period to RM2.24 from RM1.62 over a year ago.
IJM’s market value has increased by over RM2 billion to RM8.13 billion from RM5.87 billion at the end of 2018.
Urusharta Jamaah appears to have taken a loss on its stake in Icon Offshore Bhd after ceasing to be a substantial shareholder in the financially troubled company.
In December 2018, Icon Offshore’s share price was at 24 sen and continued falling to a low of 3.5 sen last week before the company moved to consolidate its 50 shares into one as part of its financial restructuring exercise.
In a bourse filing last Friday, Icon Offshore disclosed that Urusharta Jamaah has disposed of 972,225 shares in the offshore support vessel player, thus ceasing to be a substantial shareholder.
The announcement suggested that the special-purpose vehicle has opted out instead of pumping in more cash into Icon Offshore.
Despite the gains made on some of the counters, Urusharta Jamaah portfolio is still likely to be below its acquired value.
To recall, its portfolio of 106 equities was acquired for RM16.85 billion as the stocks were bought based on the pilgrim fund’s historical purchase prices instead of their collective market value of RM7.47 billion as at Dec 31, 2018.
The assets transferred to Urusharta Jamaah consist of a mixture of listed equity holdings, properties and one unlisted plantation asset as a part of TH’s rescue and restructuring plan.
The exercise was similar to what Pengurusan Danaharta Nasional Bhd did when it took over the nonperforming loans of banks after the 1997/98 Asian Financial Crisis.
The transaction, which was completed on Dec 28, 2018, involved a transfer of assets with a market value of RM9.63 billion from TH to Urusharta Jamaah in exchange for RM19.9 billion, consisting of two tranches of sukuk totalling RM19.6 billion and RM300 million in cash payable to TH.
The difference of RM10.3 billion between the consideration of RM19.9 billion and RM9.63 billion assets market value was borne by the government to ensure that the financial health of TH was restored.
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