(EWI) will see its overseas contribution leapfrog to about 20% of its bottomline from about 2% presently.
Its group chief executive officer and director Jeffrey Chew said overseas expansion will help it diversify its risk and not put all of its eggs into one basket.
“The overseas expansion consists of three phases – first, which was achieved with the EWI stakes acquisition.
“The second phase of support is from our present exposures in Bangkok, Thailand, which we have already spent five years of learning – their construction process, requirements from the authorities and our shareholder,” Chew said at a briefing after its AGM in Shah Alam yesterday.
“The third phase is that we are looking to invest in property projects, not very big ones but smaller ones such as industrial factories, commercial complex or small residential projects that we would go in at the structured equity level in a short term basis of up to five years, to enter and then come out on a project by project basis,” he added.
For the third phase, the company said it would work with various partners in various mature country markets, including in the United Kingdom, the United States, Japan, Singapore and Europe.
Chew said these diversification plans would give it exposure into the various markets – both domestic and international, as well as developing and developed countries.
“It gives us the option to adjust our risk and allocate capital accordingly. We can choose to increase our short term exposure in Malaysia should we find the domestic market doing very well (or vice versa),” he said.
Paramount is presently in an equity venture business partnership that is developing the Na Reva, Bangkok.
Meanwhile, Chew said the company had earlier received verbal agreement to elect board members with its partners in EWI and is expected to appoint them soon.
“We are going to ask for the seats, but before we did the deal we did informally ask the major shareholder if we were welcomed in the company with board representation and we got a favourable response.
“This is very important before we finally put out the offer,” he said.
He noted the EWI deal was funded with 80% debt and 20% equity, of which the former had seen it secure borrowing rates that were competitive to carry out the acquisition.
The EWI deal saw Paramount’s purchase consideration at RM170.61mil for the 21.54% stake, which would see the acquirer also netting dividends eventually of up to RM108.57mil from a proposed capital reduction exercise, based on EWI’s circular to shareholders on Feb 23.
Chew is confident of the prospects in the domestic property market, where he noted the situation with the overhang had eased based on the latest numbers from the National Property Information Centre.
“Now that we are halfway through the year, I can say we are quite confident of hitting RM600mil in sales by end-June and we can achieve another RM800mil in the second half.
“There is no issue for us to achieve more than RM1bil in sales for the entire year,” he said.
As published: The StarOverseas earnings growth key for Paramount
By Daniel Khoo
SHAH ALAM: Paramount Corp Bhd is aiming to grow its overseas contribution from the property scene to 30% of its net profit within the next seven years.
The company’s recent 21.54% stake acquisition into Eco World International Bhd(EWI) will see its overseas contribution leapfrog to about 20% of its bottomline from about 2% presently.
Its group chief executive officer and director Jeffrey Chew said overseas expansion will help it diversify its risk and not put all of its eggs into one basket.
“The overseas expansion consists of three phases – first, which was achieved with the EWI stakes acquisition.
“The second phase of support is from our present exposures in Bangkok, Thailand, which we have already spent five years of learning – their construction process, requirements from the authorities and our shareholder,” Chew said at a briefing after its AGM in Shah Alam yesterday.
“The third phase is that we are looking to invest in property projects, not very big ones but smaller ones such as industrial factories, commercial complex or small residential projects that we would go in at the structured equity level in a short term basis of up to five years, to enter and then come out on a project by project basis,” he added.
For the third phase, the company said it would work with various partners in various mature country markets, including in the United Kingdom, the United States, Japan, Singapore and Europe.
Chew said these diversification plans would give it exposure into the various markets – both domestic and international, as well as developing and developed countries.
“It gives us the option to adjust our risk and allocate capital accordingly. We can choose to increase our short term exposure in Malaysia should we find the domestic market doing very well (or vice versa),” he said.
Paramount is presently in an equity venture business partnership that is developing the Na Reva, Bangkok.
Meanwhile, Chew said the company had earlier received verbal agreement to elect board members with its partners in EWI and is expected to appoint them soon.
“We are going to ask for the seats, but before we did the deal we did informally ask the major shareholder if we were welcomed in the company with board representation and we got a favourable response.
“This is very important before we finally put out the offer,” he said.
He noted the EWI deal was funded with 80% debt and 20% equity, of which the former had seen it secure borrowing rates that were competitive to carry out the acquisition.
The EWI deal saw Paramount’s purchase consideration at RM170.61mil for the 21.54% stake, which would see the acquirer also netting dividends eventually of up to RM108.57mil from a proposed capital reduction exercise, based on EWI’s circular to shareholders on Feb 23.
Chew is confident of the prospects in the domestic property market, where he noted the situation with the overhang had eased based on the latest numbers from the National Property Information Centre.
“Now that we are halfway through the year, I can say we are quite confident of hitting RM600mil in sales by end-June and we can achieve another RM800mil in the second half.
“There is no issue for us to achieve more than RM1bil in sales for the entire year,” he said.
As published: The Star
(EWI) will see its overseas contribution leapfrog to about 20% of its bottomline from about 2% presently.
Its group chief executive officer and director Jeffrey Chew said overseas expansion will help it diversify its risk and not put all of its eggs into one basket.
“The overseas expansion consists of three phases – first, which was achieved with the EWI stakes acquisition.
“The second phase of support is from our present exposures in Bangkok, Thailand, which we have already spent five years of learning – their construction process, requirements from the authorities and our shareholder,” Chew said at a briefing after its AGM in Shah Alam yesterday.
“The third phase is that we are looking to invest in property projects, not very big ones but smaller ones such as industrial factories, commercial complex or small residential projects that we would go in at the structured equity level in a short term basis of up to five years, to enter and then come out on a project by project basis,” he added.
For the third phase, the company said it would work with various partners in various mature country markets, including in the United Kingdom, the United States, Japan, Singapore and Europe.
Chew said these diversification plans would give it exposure into the various markets – both domestic and international, as well as developing and developed countries.
“It gives us the option to adjust our risk and allocate capital accordingly. We can choose to increase our short term exposure in Malaysia should we find the domestic market doing very well (or vice versa),” he said.
Paramount is presently in an equity venture business partnership that is developing the Na Reva, Bangkok.
Meanwhile, Chew said the company had earlier received verbal agreement to elect board members with its partners in EWI and is expected to appoint them soon.
“We are going to ask for the seats, but before we did the deal we did informally ask the major shareholder if we were welcomed in the company with board representation and we got a favourable response.
“This is very important before we finally put out the offer,” he said.
He noted the EWI deal was funded with 80% debt and 20% equity, of which the former had seen it secure borrowing rates that were competitive to carry out the acquisition.
The EWI deal saw Paramount’s purchase consideration at RM170.61mil for the 21.54% stake, which would see the acquirer also netting dividends eventually of up to RM108.57mil from a proposed capital reduction exercise, based on EWI’s circular to shareholders on Feb 23.
Chew is confident of the prospects in the domestic property market, where he noted the situation with the overhang had eased based on the latest numbers from the National Property Information Centre.
“Now that we are halfway through the year, I can say we are quite confident of hitting RM600mil in sales by end-June and we can achieve another RM800mil in the second half.
“There is no issue for us to achieve more than RM1bil in sales for the entire year,” he said.
As published: The Star
