Pos Malaysia to study Transmile buy

Thursday May 13, 2010




By EDY SARIF

edy@thestar.com.my





KUALA LUMPUR: Pos Malaysia Bhd does not rule out a possibility to take over the debt-ridden air cargo transporter Transmile Bhd but this will only happen after a proper business plan being carried out first, said chairman Tan Sri Aseh Che Mat.



“This is one of the proposals being forwarded by our shareholders during the AGM today and the board will take note of the proposal and deliberate the issue carefully at the next board meeting,” he told reporters yesterday.



Pos Malaysia is currently the second largest shareholder in Transmile with a 14.9% stake.



Aseh said a proper business plan was required for this matter as Transmile's debt was very huge, at about RM500mil.



“We do not want to see our profits turn into losses if we proceed with the proposal to take over Transmile,” he said.



On the issue of Khazanah Nasional Bhd's plans to dispose of its 32% share in Pos Malaysia, Aseh said Pos Malaysia couldn't comment on the disposal plan but hoped the new shareholders would continue with Pos Malaysia's transformation plan.



The 3-year Transformation Master Plan in Pos Malaysia is to help the company increase its revenue and profit and optimise its cost apart from strengthening its image.



On the business side, group managing director/chief executive officer Datuk Syed Faisal Albar said the company's logistics business for east Malaysia was currently valued at RM110mil with 70% of it being handled by Transmile.



He said Pos Malaysia expected its revenue to rise by 15% to 18% in each of two 12-month periods after its postal tariff hike takes effect on July 1.



The company, he said, was also conducting research on exploring the best ways to unlock the value of the land on which its post offices and other operations are located.



Pos Malaysia's net profit for the financial year ended Dec 31, 2009 was RM76.7mil compared with a net loss of RM33.3mil a year ago due to the effective cost optimisation measures throughout the year and the absence of any investment impairment provision. Revenue was down to RM902.6mil versus RM921.7mil due to weak economic conditions which adversely affected mail volume.



The company declared a final dividend of 12.5 sen per ordinary share less 25% income tax for the financial year ended Dec 31, 2009 that translates to a net dividend payout of about 71%.