Tuesday, 8 January 2013

Malakoff to pay 50%-75% of net profit as dividend

PETALING JAYA: Malakoff Corp Bhd - the country's largest independent power producer (IPP) en route to a comeback on the Main Market of Bursa Malaysia - said it aims to pay between 50% and 75% of its net profit as dividends in its draft prospectus.

“We propose to pay dividends out of cash generated from our operations after setting aside necessary funding for capital expenditure and working capital requirements,” its prospectus exposure on the website of the Securities Commission said.

“As part of this policy, our company targets a dividend payout ratio equivalent to between 50% and 75% of our consolidated profit attributable to our equity holders under the MFRS (Malaysian Financial Reporting Standards), beginning Jan 1, 2013,” it added.

Malakoff, a 51%-owned subsidiary of MMC Corp Bhd, had an effective power-generation capacity of about 5,020 MW, or 22.5% of Peninsular Malaysia's total installed capacity, as at Dec 31, 2011.

The IPP is also engaged in the independent water production and power-generation business in the Middle East and North African region.

Previous reports had stated that Malakoff would make a comeback to Bursa Malaysia some time in the second quarter of this year, and was looking to raise about US$1bil (RM3.1bil).

In its draft prospectus, however, the listing date and the issue price for its initial public offering (IPO) were not specified.

According to Malakoff's draft prospectus, the company's IPO would involve the sale of 760.87 million shares, comprising a public issue of 500 million new shares and an offer for sale of 260.87 million new shares. The total number of shares up for sale in Malakoff's' IPO represents 30.4% of the company's enlarged share capital post-listing.

Malakoff stated that the bulk, or 90%, of its IPO proceeds would be used to pare down debts. The remainder would be used for future business expansion, working capital and general corporate purposes as well as listing expenses.

For the nine months (9M) of its financial year (FY) ended Dec 31, 2012, Malakoff posted a net profit of RM420.39mil, representing an increase of 31.2% from the RM320.38mil recorded for the corresponding period a year ago. Revenue for 9M12 was also higher at RM4.3bil, compared with RM4.2bil a year ago.

For FY11, Malakoff's net profit stood at RM550.99mil, compared with RM217.34mil in FY10, while revenue stood at RM5.7bil for FY11, compared with RM5.2bil for FY10.

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