TEHO'S 2nd property deal in 6 months; Geo Energy triples coal reserves

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limseehoe_350 TEHO International CEO Lim See Hoe.
NextInsight file photoLESS THAN half a year following TEHO INTERNATIONAL’S maiden foray into property development with the acquisition of TIEC Holdings, it is into a joint venture for developing property in Cambodia.

On 14 August, the SGX Catalist-listed rope and wire specialist said that it has signed a MOU with independent and unrelated third parties to form a joint venture company in Cambodia for real estate development and investment.

No details were announced. This proposed JV comes hot on the heels of the completion of its acquisition of 100% of local property developer, TIEC Holdings, on 26 May for S$12.3 million.

The purchase consideration was a fraction of the independent valuation of S$60.8 million as at 7 January 2014 based on its unsold units and the contracted selling prices of sold units.

TIEC Holdings posted an audited profit after tax for the financial year ended 31 March 2013 of S$500,000 and had a NTA of S$1.6 million as at 31 March 2013.

S$7.3 million of the S$12.3 million purchase consideration was paid for in cash and the balance via issue of 25 million TEHO shares at 20 cents apiece.

Elite_Residences Elite Residences @ Siglap. Artist's impressionTIEC Holdings specializes in residential properties in Singapore and is currently developing:

(i) Elite Residences at 52 Elite Terrace comprising 8 units of 3-storey strata landed terrace with basement and attic.

(ii) Urban Heritage at 238-242 Balestier Road comprising 3 retail units, 3 office units and 15 (1-2 bedroom) residential units.

(iii) 7 Berwick Drive comprising a pair of semi-detached units.

(iv) 61 Conway Grove comprising one semi-detached unit.

Explaining TEHO's entry into real estate, CEO Lim See Hoe said: “Being in the offshore marine industry subjects the Group to its volatile cycles. We believe the real estate sector will help to diversify our revenue and earnings streams."

TEHO posted revenue growth of 40.5% year-on-year to S$60.4 million for FY2014 (year end June). TIEC Holdings contributed S$5.1 milion in revenue, which is one full month of revenue post acquisition.

The Group's net profit was up 42.5% at S$3.4 million. It proposed a final dividend of 0.8 cent per share, representing a dividend payout of 32.5%.

Geo Energy enhances coal reserves

Geo_signing_8.14 Geo Energy Resources executive director Huang She Tong (right) at a signing ceremony with representatives from BIR vendor Optimum Company photoGeo Energy Resources has completed the acquisition of 66% of Borneo International Resources (BIR) for US$55 million.

The acquisition increases Geo Energy's coal reserves by more than 3 times, from about 11 million tonnes currently to more than 40 million tonnes.

BIR owns concession rights to mine 236.1 hectares of coal mines in South Kalimantan, Indonesia with an average coal calorific value that is higher than Geo Energy's current coal reserves.

BIR owns concession rights to SDJ, a coal mining area which contains coal with an average calorific value of 4,038 kcal/kg, which is higher than the 3,470 kcal/kg for Geo Energy's existing coal reserves at BEK.

Last month, Geo Energy entered into another mining services contract and mining co-operation agreement with CV Mandiri Makmur Citra Tambang at a concession area near SDJ.

The services agreement is for overburden removal, land clearing and dewatering of a concession area in South Kalimantan spanning a total area of 190.7 hectares.

The mining services agreement includes Geo Energy's purchase of 1.9 million tonnes of 4,100-kcal/kg coal from the concession owner at US$35.35 per tonne.

Recent story: YANGZIJIANG'S First VLOC Order, GEO ENERGY In Coal Concession Deal

TEHO'S 2nd property deal in 6 months; Geo Energy triples coal reserves

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