Wednesday, February 9, 2011

Tabung Haji sells 1m Masteel shares

KUALA LUMPUR: Lembaga Tabung Haji disposed of one million shares of Malaysia Steel Works (KL) Bhd on Jan 31 and Feb 2, reducing its stake to 14.026 million shares or 6.66%.

A filing with Bursa Malaysia showed the pilgrimage fund had disposed of 500,000 shares on Jan 31 and another 500,000 shares on Feb 2.

The share price closed at RM1.28 on Jan 31 and RM1.30 on Feb 2.

Masteel shares had attracted attention after the company and KUB MALAYSIA BHD [] (KUB) proposed to build and operate a 100km inter-city rail transit system in Iskandar Malaysia, which will connect to the MRT line from Singapore.

To recap, the companies said on Jan 19, 2011, the project could cost over RM1 billion, and consists of up to 25 commuter stations in major towns in the Iskandar Malaysia region in the initial stage.

"The operation of the inter-city rail transit shall be based on a 25-year concession," they said in the statement after the signing of the head of joint venture agreement to undertake the project.

Masteel and KUB would hold 60% and 40% equity stakes respectively in the JV company, Metropolitan Commuter Network Sdn Bhd. The project would be undertaken in three phases and completed within 24 months from project commencement.

The building of the rail transit infrastructure would also be funded by project financing under the Public-Private Partnership scheme (PPP).

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