Director Datin Alicia Tiah said TA Global already had properties in Australia and Canada.
The company’s existing portfolio includes two five-star hotels in Australia and a four-star hotel in Vancouver, Canada.
“We’re always looking for opportunities. Buying a hotel is not as easy and a lot of homework needs to be done. We want to buy properties that have the right location, price as well as offer good yields,” Alicia said after the launching of the company’s prospectus yesterday.
She said the company was not under pressure to buy anything at the moment but would consider it if something came along.
To a question, Alicia said she hoped TA Global would have some “good news from Canada to disclose soon”.
Going forward, Alicia expects revenue from its hospitality division to triple in the financial year ending Jan 31 (FY10).
Alicia said hypothetically, revenues from hospitality should increase judging by the number of hotels it had now from one previously.
On pro-forma basis, TA Global posted a net profit of RM92.8mil on revenue of RM440.7mil in FY09. For the three months ended April 30, its net profit fell to RM15.7mil from RM19.8mil previously. Revenue was also lower at RM49.2mil.
“I’m sorry. We’re not allowed to give forecast but we’ve been profitable over the last three years,” Alicia said when asked on the company’s financial performance. However, she expects the company to “maintain” its financial performance in FY10 and FY11.
Executive chairman Datuk Tiah Thee Kian said the company’s properties were all iconic assets. “They are not only located in prime areas but also yield a steady income for TA Global.”
On the local front, TA Global owns land in prime areas in the Klang Valley. Its head office, Menara TA One, is scheduled for refurbishment and when completed, is expected to see higher yield.
With the listing, TA Global is expected to be one of the largest listed property companies in the country.
The exercise includes a rights issue of 269.9 million new shares to its single-largest shareholder TA Enterprise Bhd (TAE) at an issue price of 50 sen, raising RM135mil, which will accrue to TA Global.
TAE will offer for sale up to 460 million TA Global shares at an indicative offer price of 50 sen each. Of the total, 90 million shares are allocated for bumiputra individuals and organisations. Another 360 million shares are for approved bumiputra investors and 10 million shares for eligible directors, employees and business associates of the TA group. The listing exercise is expected to raise RM230mil.
By The Star
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