PNB remains mum over plans for SP Setia

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) is still reluctant to share details of its future plans for property developer SP Setia Bhd, a group it took great pains to gain control of almost three years ago, despite the slew of resignations and shrinking sales target for the group.
"That (SP Setia's financial performance) we leave it to the board. We hope their board is in good position to ensure in the long run they are able to get the results that they want. We believe they are doing their level best to ensure that the returns are good for us," PNB president and CEO Tan Sri Hamad Kama Piah Che Othman told reporters yesterday.
He declined to comment further on SP Setia or the various resignations at the group.
On Tuesday, SP Setia announced that it achieved sales of RM4.62 billion for FY14, missing its target of RM5 billion.
Its acting president and CEO Datuk Voon Tin Yow said the group had deliberately scaled back on launches due to the market environment and the many changes within the group.
This year also saw the departure of former president and CEO Tan Sri Liew Kee Sin, CFO Datuk Teow Leong Seng and non-independent, non-executive director Tan Sri Lee Lam Thye.
Voon, who replaced Liew, has also tendered his resignation and will be serving his last day at the group on Dec 31, 2014. He will be replaced by the current acting deputy president and COO Datuk Khor Chap Jen effective Jan 1, 2015.
Hamad, who announced an income distribution of 7.5 sen per unit and a bonus of 1 sen per unit for its subsidiary Amanah Saham Nasional Bhd's (ASNB) Skim Amanah Saham Bumiputera (ASB) for the financial year ended Dec 31, 2014, said PNB has set aside a certain amount of funds in reserves in view of the uncertain market conditions.
"Outlook as I said, in the context of the unpredictable stock market which fell 10% this year, as a fund manager we always try to ensure that we get the returns that are competitive just as how investors/unit holders hope for competitive returns. When we invest for our portfolio we will ensure that we get the returns that we hope for," he said.
Hamad said so far, PNB's investments have not been affected by the falling oil prices, weakening ringgit and the slump in the stock market. He declined to comment on the outlook for its investments next year, saying only that it will prepare for 2015.
ASB's income distribution portion will involve a total payout of RM10.16 billion by ASNB, an increase of 10.8% compared with RM9.17 billion paid out last year. The bonus portion will involve a total payout of RM804.43 million by PNB, an increase of 19% compared with RM675.93 million paid out last year.
"In terms of capacity, we can pay more than 10 sen per unit but we decided to pay 7.5 sen per unit and carry forward the rest for future investments, because our portfolio is long-term. We must ensure we get competitive returns," he added.
The payment is expected to benefit 8.6 million unit holders which currently hold a total of 137.07 billion units of ASB.
Total gross income of ASB on Dec 16, 2014 is estimated at RM10.55 billion. Dividend income from investee companies contributed RM4.64 billion or 44% of the gross income while profit from the sale of shares contributed RM4.23 billion or 40.1% of the gross income. The remaining RM1.68 billion or 15.9% was derived from other incomes.