Malaysian firm takes control of listed North Borneo Timber

Malaysian firm takes control of listed North Borneo Timber

KUALA LUMPUR (AFP): A firm based in Malaysia's timber-rich
Sabah state yesterday announced acquisition of a strategic 30.567
percent stake in North Borneo Timber Bhd., seen as a bid by the
Sabah government to corporatize its timber operations.

With the purchase, Aman Takzim Sdn. Bhd., wholly-owned by
Sabah natives, has taken control of listed North Borneo from
Bombay Burmah Trading Corporation Ltd. of India in the deal
estimated at 200 million ringgit (US$80 million) or 8.50 ringgit
($3.4) per share of North Borneo.

Aman Takzim said the acquisition, sealed on Friday, was a
strategic move towards the corporatization of the timber industry
in Sabah.

Trading of shares in North Borneo Timber was voluntarily
suspended yesterday on the Kuala Lumpur Stock Exchange while
awaiting the announcement.

Aman Takzim, principally involved in timber, has nominated
Mohd. Shafie Apdal, a 37-year old Malay Bajau native, who is
chairman of the state-run Sabah unit trust, as chairman of North
Borneo.

Mohd Shafie, seen by analysts as a state government nominee,
is also chief of the youth wing of Prime Minister Mahathir
Mohamad's United Malays National Organization (UMNO) in Sabah
state.

Analysts see the deal as a move by the Sabah government to use
the listed vehicle to reorganize its highly politicized timber
industry.

North Borneo, formed in 1950 and listed in 1968, was involved
in logging in Sabah for a long time before it ceased its timber
activities and diversified into oil palm and cocoa.

Now listed as a plantation stock, it surged 1.50 ringgit to
close Friday at 8.55 ringgit.

Across the causeway in Singapore, North Borneo shares rose
1.59 Singapore cents to S$6.55 on Clob International, the central
limit order book, Singapore's computerized over-the-counter
market for foreign issues, prior to its voluntary suspension
yesterday.