13th June, 2014
KUALA LUMPUR: Affin Research has maintained its Trading Buy on Benalec with a target price of RM1.98, hinging on its massive land reclamation concessions in Tanjung Piai and Pengerang.
In a note on Friday, the research house said the projects are expected to boost its order book by RM15bil and net profit by RM1.2bil over the next 10-15 years.
It said the the land sale to 1MYSOT is critical to the success of the Tanjung Piai concession.
“Validity of term sheet on reclamation works and land sale extended again Benalec Holdings announced Spektrum Kukuh, The State Secretary, Johor (Incorporated) and 1MY Strategic Oil Terminal (1MYSOT) have mutually agreed to extend the period of validity of the binding term sheet for an additional duration of six months to finalise the terms and conditions of the Sale and Purchase Agreement (SPA),” it said.
Affin said the extended duration is from June 12 to Dec 11.
“Parties first entered into the binding term sheet on March 12, 2013.
“ The binding term sheet relates to the reclamation and sale of approximately 1,000 acres of land off the coast of Tanjung Piai, Johor Darul Ta’zim for the purpose of constructing and operating a crude oil and petroleum storage facility together with a private jetty.
“The three parties first entered into the binding term sheet on March, 2013 and have since extended the duration to finalise the terms and conditions of the SPA three times,” it said.