CORP BRIEF: CTOS Digital-RAM Holdings, E&O, HSBC and YTL Data Center Park


CTOS Digital to acquire 9.1% stake in RAM Holdings

CTOS Digital Bhd proposes to buy 9.1% of the total paid-up capital in RAM Holdings Bhd from OCBC Bank Bhd, Affin Bank Bhd and Affin-Hwang Investment Bank Bhd for a total cash consideration of RM25 million. The purchase consideration was arrived at based on a willing buyer willing seller basis after taking into consideration that it represents 1.6 times of the financial year 2020 (FY20) net asset value of RAM Holdings and 32.8 times FY20 profit after tax, is in line with the other listed credit rating agencies globally. The acquisition of a strategic minority stake in RAM Holdings will allow both companies to leverage each company’s expertise in credit assessment, data and analytics to further extend their product offering and value proposition to their existing customer base.

E&O’s subsidiary secures 0.25% lower sukuk profit rate

EASTERN & Oriental Bhd’s (E&O) subsidiary Tanjung Pinang Development Sdn Bhd (TPD) has secured a 0.25% downward revision in the margin of floating profit rate applicable to the outstanding sukuk Murabahah and future of sukuk Murabahah to be issued under the first tranche. The first launch on the fully reclaimed Andaman Phase 1, called the Meg has been well received and it has unveiled the second tower for booking to encouraging response. TPD has issued RM847.8 million out of the RM1.3 billion first tranche with the remaining RM452.2 million available for issuance. The 0.25% profit rate reduction would translate to an annual cost savings of RM2.1 million based on the current amount issued.

HSBC offers first SLP-based financing in South-East Asia

HSBC has granted its inaugural social financing in Malaysia, which also represents its first Social Loan Principles (SLP)-based financing in South-East Asia for the real estate sector, to property developer Jayyid Land Sdn Bhd. HSBC Amanah Malaysia Bhd provided the financing amounting to RM136 million to Jayyid Land, a joint venture between Platinum Victory and Jakel Group, for the development of Phase One of the J Satine project in Setapak, Kuala Lumpur.

YTL Data Center Park in Johor launched

YTL Power International Bhd’s subsidiary, YTL Data Center Holdings Pte Ltd, announced that work has started on the first 72-megawatt (MW) of its 500MW data centre campus in Johor, the first data centre park in Malaysia to be powered by renewable solar energy. YTL Power MD Datuk Yeoh Seok Hong said the first 72MW data centre is expected to be in service by the first quarter of 2024.