Perduren still on lookout to acquire O&G property assets

KUALA LUMPUR: Property investment company Perduren (M) Bhd which recently disclosed plans to venture into oil and gas-related real estate development such as supply bases, said it has yet to identify any potential assets but intends to do so within a year.
"On O&G (oil and gas) sites, we are still looking at several possibilities (to merge and acquire new assets), but as for now nothing has been firmed up yet. Hopefully in a year we will have more diversified portfolio," its director Datuk Kamaluddin Abdullah, son of former prime minister Tun Abdullah Ahmad Badawi, told reporters after its EGM yesterday.
"With the recent downturn in oil prices, valuations of businesses on O&G site are more realistic. I think that will be very opportunistic for us," he said, adding that the group has RM166 million cash for its plans.
Perduren is primarily engaged in rental of investment properties, and car park, hotel and recreation centre operations.
Meanwhile, Perduren's director Datuk Mazlin Md Junid said despite the subdued O&G prices, he said the sector remains as a backbone to the Malaysian economy.
"There has been no reduction in consumption (of O&G) and there has been no alternative to fossil fuel that is economical going forward," Mazlin said, noting that there are also limited numbers of supply bases in the country.
"Therefore, we can be sure that there will be a continued growth in the consumption of O&G, and we all believe that the current oil prices are not going to stay this way for too long," he added.
Kamaluddin and Mazlin had in February completed the mandatory takeover for the remaining 30.7% they did not own in Perduren for RM66.27 million or RM1.60 per share.
With the completion of the takeover exercise and its new business direction, Perduren will now be known as Enra Group Bhd, named after Endon and Ramlah, the mothers of Kamaluddin and Mazlin.
During the EGM, the group's shareholders approved the proposal to dispose the group's existing property-related businesses for RM81.5 million to Jerusan Indah Sdn Bhd and Meridian Hectares Sdn Bhd. Wan
Kamaluddin said after the proposed disposals, the group would cease to have revenue from its hotel segment, while its car park revenue would be reduced substantially.
However he said revenue from its property investment and property development interests, namely Holiday Plaza and Landmark Zone Sdn Bhd will continue as usual.
Kamaluddin said the company do not plan to pay any dividends as an immediate result of the proposed disposals at this juncture.
The group has not paid any dividends for the past five years including its financial year ended Dec 31, 2014.
Yesterday, Perduren shares went up 10 sen or 4.93%, closing at RM2.13. The increase however was on thin volume with only 600 shares traded.