Friday, June 17, 2011

APH says in talks with investor to finance hub project - Muhibbah

KUALA LUMPUR: Asia Petroleum Hub (APH) has identified an investor and was in negotiations with the investor to fully finance the completion of the APH hub project, including making due payments to contractors.

In a filing Friday, June 17, MUHIBBAH ENGINEERING (M) BHD [] said according to APH, it had identified an investor.

Muhibbah is one of the contractors for a petroleum hub and bunkering facility at the reclaimed island of Tanjung Bin, and its receivables for certified work done and related costs amount to RM 370.8 million as at Dec 31, 2010.

Muhibbah's share price tumbled yesterday after the Singapore Business Times reported on June 15 that CIMB (the financier of APH project) had appointed receivers and managers for APH.

However, the shares recovered this morning and were last traded eight sen higher at RM1.60 with 9.27 million shares done before trading was halted for one hour from 10.39am.

'As this is a oil and gas project with a secured business and the said investor due to finalise its financing transaction with APH, there are reasonable grounds to hold that the receivables are recoverable in due course,' Muhibbah said.

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