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.