This is net of: i) amortisation of intangible assets of RM70.4 million; and ii) loss of interest income (acquisition price: US$70 million [RM284.9 million]). Therefore, this would boost Shuaibah’s contribution to an estimated RM80 million for FY20 (FY19 estimate: RM57 million). Lastly, following the Macarthur disposal, we estimate loss of earnings contributions of RM29 million-RM32 million for FY20-FY21 (10% of forecasted earnings). Nevertheless, for the second, we believe there is a high likelihood that Malakoff would recycle the proceeds into new investments. In particular, the management is eyeing international renewable energy (RE) opportunities.

Source: The Edge Markets January 23, 2020 03:06 UTC