Malaysian firm takes control of listed North Borneo Timber<\/p>\n
KUALA LUMPUR (AFP): A firm based in Malaysia's timber-rich
\nSabah state yesterday announced acquisition of a strategic 30.567
\npercent stake in North Borneo Timber Bhd., seen as a bid by the
\nSabah government to corporatize its timber operations.<\/p>\n
With the purchase, Aman Takzim Sdn. Bhd., wholly-owned by
\nSabah natives, has taken control of listed North Borneo from
\nBombay Burmah Trading Corporation Ltd. of India in the deal
\nestimated at 200 million ringgit (US$80 million) or 8.50 ringgit
\n($3.4) per share of North Borneo.<\/p>\n
Aman Takzim said the acquisition, sealed on Friday, was a
\nstrategic move towards the corporatization of the timber industry
\nin Sabah.<\/p>\n
Trading of shares in North Borneo Timber was voluntarily
\nsuspended yesterday on the Kuala Lumpur Stock Exchange while
\nawaiting the announcement.<\/p>\n
Aman Takzim, principally involved in timber, has nominated
\nMohd. Shafie Apdal, a 37-year old Malay Bajau native, who is
\nchairman of the state-run Sabah unit trust, as chairman of North
\nBorneo.<\/p>\n
Mohd Shafie, seen by analysts as a state government nominee,
\nis also chief of the youth wing of Prime Minister Mahathir
\nMohamad's United Malays National Organization (UMNO) in Sabah
\nstate.<\/p>\n
Analysts see the deal as a move by the Sabah government to use
\nthe listed vehicle to reorganize its highly politicized timber
\nindustry.<\/p>\n
North Borneo, formed in 1950 and listed in 1968, was involved
\nin logging in Sabah for a long time before it ceased its timber
\nactivities and diversified into oil palm and cocoa.<\/p>\n
Now listed as a plantation stock, it surged 1.50 ringgit to
\nclose Friday at 8.55 ringgit.<\/p>\n
Across the causeway in Singapore, North Borneo shares rose
\n1.59 Singapore cents to S$6.55 on Clob International, the central
\nlimit order book, Singapore's computerized over-the-counter
\nmarket for foreign issues, prior to its voluntary suspension
\nyesterday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysian-firm-takes-control-of-listed-north-borneo-timber-1447893297",
"image": ""
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