KUALA LUMPUR (Feb 19): Tebrau Teguh Bhd rose in early trades following news reports that Singapore's Temasek Holdings Pte Ltd and a subsidiary will buy a man-made island from its major shareholder Iskandar Waterfront Holdings Bhd (IWK).

At 10.39 am, the 6th most active stock was flat at 92.5 sen after rising 2.7% to a high of 95 sen, with trades of 10 million shares, against a declining broader market.

A dealer told theedgemalaysia.com: “This stock is seen as a proxy to Iskandar Malaysia development. There is so much happening there that you cannot ignore it.

“Though speculative, this stock has some fundamentals. Hence it is one of the picks of retail players. As at end-September, its net assets per share stood at 78 sen.”

Two news dailies, quoting sources , reported today that Temasak and Capital Land Malaysia Pte Ltd will enter into an agreement with IWK today to buy 28.33ha at Danga Bay for about RM800 million.

In addition, IWH’s unit Iskandar Waterfront Sdn Bhd would also be party to the acquisition, and the three parties would jointly develop the 28.33ha into a mixed integrated development with gross development value of RM8 billion over the next few years.

Last December, a unit of Tebrau Teguh was appointed a building and infrastructure work contractor by Unit Perancang Ekonomi Negeri Johor for a resettlement project in Pengerang, worth RM335 million.


The company said in its filing with Bursa Malaysia that the contract was expected to contribute positively to its earnings in 2013.