31.05.2006

Favelle Favco to float in August

Favelle Favco Bhd, the crane maker that also owns Kroll tower cranes and currently a wholly owned subsidiary of Muhibbah Engineering (M) Bhd, is set to be listed on Bursa Malaysia’s ‘second board’ in August. The company is already aiming to elevate itself to the exchanges main board during 2007.

Favelle’s chief executive officer Mac Chung Hui said the company would have fulfilled all the main board’s listing requirements if it meets its own earnings forecast this year.

Favelle Favco currently comprises RM291million (£43.$80 million) or 30 percent of Muhibbah’s RM970.7 million (£143/$267 million) revenues and RM6.5 million (£1/$1.8 million) or 25 percent of its net profits of RM26.1 million(3.8/$7.2 million), last year.

Mac Chung Hui, speaking after signing the underwriting documents yesterday in Kuala Lumpur, said “The parent group has been grooming the crane division for the last 10 years and we have tried to go public for several years. We believe this is the right time,”

Muhibbah will retain 58.3 percent of the shares in Favelle Favco after the flotation. The shares will not be available to the public until after the formal listing. Muhibbah share holders will be awarded shares in Favelle on a one for five basis