A closer look at Talam Corp Bhd

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The Selangor government’s decision to approve an additional RM391 million budget allocation to Mentri Besar Inc (MBI) to take over the debts owed by Talam Corp Bhd to three state agencies has stirred controversy.

Basically, under the move, MBI will use the money (via Selangor Industrial Corporation as a channel?) to settle the amount that Talam owes subsidiaries of Selangor Development Corporation (PKNS), Kumpulan Darul Ehsan Bhd (KDEB), Permodalan Negeri Selangor Bhd (PNSB) and Yayasan Pendidikan Selangor. The state government (via SIC?) is then supposed to recover the amount due from Talam.

While critics are viewing it as a bailout or window-dressing, Mentri Besar Khalid Ibrahim says the rationale is to ensure that Talam gives a higher priority to its debt (to the state), incurred over the last decade, ahead of its other creditors. On 10 Nov, Khalid gave Talam three months to settle the debt, incurred in connection with several property development projects. That remains to be seen.

In any case, I hope the Selangor state government will also take action against those responsible in the three state agencies who allowed such a large debt to go uncollected for so long.  What sort of security did they obtain from Talam?

Whatever the reason for the takeover of the debts, let’s take a closer look at Talam.

The Edge reported the following on 10 Aug 2009:

Talam, a township developer, has been classified as an affected company under PN17 since Sept 1, 2006, after its auditors were unable to provide an opinion on its results for its FY2006 ended Jan 31. Talam also defaulted on several of its term loans and bond obligations.

As part of Talam’s regularisation plan, the company issued a number of securities to various creditors, including the now-defunct discount house Abrar Discounts Bhd. Abrar received preference shares, loan stocks and Islamic debt securities worth RM423.35 million as settlement from Talam as part of the latter’s regularisation plan.

Profit/(Loss) before tax(at group level):

  • 2009 – RM60.6 million
  • 2008 – RM5.8 million
  • 2007 – (RM6.9 million)
  • 2006 – (RM772.6 million)
  • 2005 – RM130.8 million
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Talam directors (click here)

Directors’ remuneration:

  • 2009 – RM1.9 million (9 directors, three of whom received more than RM300,000 each)
  • 2008 – RM1.8 million

Debt (non-current liabilities) to equity ratio: 0.5 (previous year – 0.6)

Liquidity ratio (Current ratio):

  • Current assets: RM1.5 million
  • Current liabilities: RM2.4 million
  • Current assets:Current liabilities ratio = 0.6:1 (previous year – same)

This means that its current (liquid) assets are much less than its liabilities due within a year.

“Other payables” amount to RM404.3 million.

Extract from Talam Annual Report 2009:

Other payables and accrued expenses

The obligation arising from the acquisition of land is in respect of obligations arising from the Universiti Industri Selangor (“UNISEL”) project, whereby the Selangor State Government had alienated three parcels of land to the Group in consideration for the development of UNISEL.

In 2001, Maxisegar Sdn. Bhd. (“MSSB”), a wholly-owned subsidiary, entered into an agreement with the State Government of Selangor for the financing and construction of the main campus of UNISEL on 572.16 acres of land at Berjuntai Bestari, Selangor Darul Ehsan for a total value of RM750 million. In return, the State Government of Selangor had alienated three parcels of leasehold land to MSSB as follows:

Acres RM’000
Batang Berjuntai 3,000  345,000
Taman Puncak Jalil 801  337,500
Saujana Damansara 110  67,500
Total 3,911  750,000

MSSB was unable to meet its financial obligation to bear the development and maintenance costs due of approximately RM134.0 million (“obligation due”) of UNISEL and as such, in the previous financial year, the long term portion of MSSB’s obligation under the said agreement has been reclassified to current liabilities and it has entered into an agreement with Kumpulan Darul Ehsan Berhad (“KDEB”) and Pendidikan Industri YS Sdn. Bhd. (“PIYS”) (both of which acted as nominees of State Government of Selangor) whereby MSSB agreed to settle the obligation due by transferring 1,715.9 acres of Batang Berjuntai land which the parties have agreed shall be valued for the purpose of settlement at RM80,000 per acre to KDEB and/or PIYS. The settlement agreement is pending fulfillment of certain conditions
precedent.

Substantial shareholders (based on Annual Report 2009):

(Based on Register of Substantial Shareholders as at 10 June 2009)
No. of Ordinary Shares of RM0.20 each
Direct Deemed
Name of substantial shareholders Interest %*4 Interest %*4
1. Tan Sri Dato’ (Dr) Ir Chan Ah Chye 130,769,592 6.78 854,561,543 *1 44.32
@ Chan Chong Yoon (“TSDCAC”)
2. Puan Sri Datin Thong Nyok Choo 7,493,945 0.39 977,837,190 *2 50.71
(“PSDTNC”)
3. Kumpulan Europlus Berhad 791,465,067 41.05 – –
(“KEURO”)
4. IJM Corporation Berhad (“IJM”) – – 791,465,067 *3 41.05
NOTES:
*1 Deemed interested through his spouse, PSDTNC, his daughter, Chan Siu Wei and by virtue of his interest in
Pengurusan Projek Bersistem Sdn Bhd, Prosperous Inn Sdn Bhd, Sze Choon Holdings Sdn Bhd and KEURO
pursuant to Section 6A of the Companies Act, 1965 (“Act”).
*2 Deemed interest through her spouse, TSDCAC, her daughter, Chan Siu Wei and by virtue of her interest in Pengurusan
Projek Bersistem Sdn Bhd, Prosperous Inn Sdn Bhd, Sze Choon Holdings Sdn Bhd and KEURO pursuant to Section
6A of the Act.
*3 Deemed interested by virtue of IJM holding 25% in KEURO.
*4 % shareholding based on voting share capital as at 10 June 2009 of 1,928,102,532.

On 17 July 2009, the Edge reported that Kumpulan Euro had disposed of a 9.10 per cent stake in Talam, a move which was described then as “puzzling”.

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44 Comments on "A closer look at Talam Corp Bhd"

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economy
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economy

Source : http://www.nikzafri.blogspot.com
Tuesday, March 16, 2010

I saw this on one blog – thought I would share them. It could be wrong, it could be right…but to a certain extend, I’m beginning to see some things hiding behind the veil.

TALAM CORPORATION BERHAD
Symbol & Code : TALAM (2259) Board : Main Industry : Properties
(Quick Analysis by Nik Zafri)

Put aside politics and please do not read this article if you’re think I’m into politics. No way!

Taking over Talam by the Selangor Government with Tan Sri Khalid at helm for debt recovery exercise is something unexpected by many quarters….

Amat
Guest
Amat

I have had very bad dealings with Talam’s and their
subsidiaries for more than a decade.
Talam should not be allowed to (take) the innocent
buyers (for a ride) years after years ,someone in power should stop
this nonsensical exploitation by Talam and their subsidiaries.

fnd
Guest
fnd
My experienced with Europlus (Talam’s subsidiaries): Bought an apartment for abt 40k. They sent a letter a few months before completion date asking buyers to allow late installation of electricity sockets for the fear of theft..I thought that’s ok. We need to reply within 7 days otherwise they will consider us to agree to their terms. The letter arrived AFTER the expiry date!..Then they asked me to collect the keys a few days before completion date…I thought thats great coz they managed to complete it in time. I went on Saturday, the office is barely open. I was given the… Read more »
SEWS
Guest
SEWS

Hope with this.. I’ll get the title..for my house/land loc Lestari Putra. Tired waiting from 2006 till now, seem no light 🙁

Jat
Guest
Jat
Strange to believe that amid Talam’s annual financial loses and yet the Directors renumeration run into millions . 2008 – 1.8 million ringgit 2009 – 1.9 million ringgit Absurd to believe that Selangor State Government is pumping Rm 391 million of hard earned taxpayers monies to take over the debts owed by Talam Corporation.It would be better if they buy Talam , at a fraction cost since the company is classified a PN 17 entity. Talam have screwed and messed not only in Selangor but also other states like Johor… BN/PKR Politicians must wake up and clean the mess IF… Read more »
mr
Guest
mr

In my opinion Talam should be booted long time,
it saddened me that (those responsible) ‘ in Talam management are still being protected…
… It is high time Malaysian wake-up from the slumber and expose these business … from exploiting the poor Malaysian of their hard earned monies.
Any comments buddies?.

Mohd Akram
Guest
Mohd Akram
Shame on Talam. Lakes Ville homes were sold like HOT CAKES in 2002/3. Todate 2011, 300+ buyers are still waiting. Even KL High Court order to accomodate Rule 176 for with only 30% payment of LAD to all buyers, to facilitate house ownership went by 24 Apr 2011 without a blinker from any (party). Poor Malaysians are taken for a ride and treated like dirt. Their hard earned monies gone to waste – looking weekly at readied houses which cannot be called homes. Even Federal reps and agencies including Selangor State. This reflect the present state of how Malaysians are… Read more »
faisal salvador
Guest
faisal salvador

What’s the pingback, kickback or whatever back? Looking at the board members of Talam, I can safely say that Selangor has to do it like it or not… Remember long time ago when The late HRH Sultan lashed at Mike Tyson that he has to move to Pulau Ketam” coz lands were all given out by Mike Tyson? Who are amongst the biggest receiver? Talam? Yes or no?

Look also who is amongst the director and shareholder of KDEB? It’s Chan Ah Chye as the biggest single minority shareholder. Aiiyahh, afterall this is just another paper shuffelings by those experts!.

mk
Guest
mk

Refer to state goverment. This is a win win situation. State goverment will able to recover the debt. Talam can dispose part of its land to further reduce the borrowing and enhance Talam’s balance sheet. In my opinion, no one can find valid reason to object this plan.

alexcheam
Guest
alexcheam

Thank you Mr Yang & MK for the advices of Talam ‘s Uplifting of PN 17.

As ‘ Government ‘ mentioned , are you refer Selangor- Pakatan or Federal Government – Barisan.
You know Barisan always wants to find trobles with Pakatan. Hopefully I am wrong ?????

mk
Guest
mk

Talam now had meet all the requirement to get SC to uplift it from PN17. However Talam is waiting the debt off setting plan to completed first. Pls read below for better understanding.

http://thestar.com.my/metro/story.asp?file=/2009/11/25/central/5174460&sec=central

alex cheam
Guest
alex cheam

As an investor for Talam Bhd. Please advise whether Talam can be out of PN 17 soon ?

Is the ‘Restructuring programme'( out of Pn 17 ) included the debts owed to GLC of Selangor ????

Yang
Guest
Yang

Alex :

Currently it is at around 10 cents. Wait for 7-8 cents it should be a good buy. If the government is not confident that it would come out of PN 17, how are they going to chase back the money. For the 1st half 2009, it made a profit of 2.46 millions and has a net tangible asset of 35 cents. Can take the risk but must be medium to short term…..

onthestreets
Guest
A lot of people got confused about this debt-buying issue. Mainstream media went to town with the news, hoping to exploit this confusion. Debt-buying doesn’t necessarily mean Selangor government had to pay Talam to buy the debts. It could mean that the debts owed to the state-run companies are now transferred to the state government (via its nominee, the MB, Incorporated). Why do it? 1) It cuts the bureaucracy. Instead of multiple state companies having to beg Talam to pay, now it’s only one entity & one group of people under MB, Inc. that deals with Talam. Focus and attention… Read more »
daniel
Guest
daniel

Yes. It is good that a Bombing check and balance zooming PR state government. They get the pay and working so hard for the Rakyat.

Any small mistake will get a firing from the Rakyat. However, their integrity is well respected although is never perfect in all their administrations.

Malaysia is multiple races with different back grounds. State administrator either bury them or delay the decision. But PR is bold and daring to come forward to resolve them.

Anyway, solutions could hurt few but I hope it brings all problems to a solution at least.

K
Guest
K
Anil I was told that the building that being constructed in the Beach Street (right opposite the entrance to the Market Street in Little India)has been converted from a public carpark to a commercial property. I remember MPPP deciding to remove an open uncovered carpark and to build a multi-story carpark for some dubious reasons a few years ago. The construction was stopped for a while when the current Development Above People took over. However, several weeks ago the project was re-launched and it was informed by my sources within MPPP that the building now has been given a go… Read more »
daniel
Guest
daniel

I believe the state government and MPPP will do their best. Be respectful to our leaders and government servants. This is time to work for betterment of Penang.

Even a commercial building were to be build, it is the state investment and the profit will go back to the state. In stead of the state government increase the burden by increase quit rent and assessment, the development and investment is good.

Be cool. Give the elected leaders a peace of mind to serve the people of Penang.

escapade
Guest
escapade
Can someone help to check some intriging issues surrounding the buyover or bailout? Its reported SIC to get CIMB loan over RM 391 million. What are the actual collateral? Who are the main guarantors? Its rumoured that (a certain M) is somehow the person to arrange this facilities. Also, the likes of (another M) & AH are somehow link to the Selangor Corps. Given the political scenario, why would CIMB wanna risk this loan or venture? I believe Anwar stepped in for a reason to make sure Khalid dont fumble to this hidden hands. Bailout or not, I am pretty… Read more »
daniel
Guest
daniel

Sorry for Tan Sri Khalid, you carry the burden of previous state government mismanagement
Tan Sri Khalid like the Prime Minister of Japan or President of USA, he is rich before he became the Menteri Besar. I trust him better.

K
Guest
K

daniel

It would be very interesting to ask how come Khalid become rich…and BTW understand that Khalid is also owe a huge sum of money to banks and these banks are pursuing legal avenue to recover it. It is possible that Khalid might be made a bankrupt and leave his post as MB.

Yang
Guest
Yang

k, You should be asking Khir Toyo that question, a dentist that could acquire a 24 million mansion. You should also be asking how Taib got 6 millions cash in his suitcase during check in to Australia. Are you biase or just plain stupid…… when Khalid would possibly be made bankrupt as you said so….

daniel
Guest
daniel

TS Khalid was a big shareholder in Guthrie and vast experience in corporate world in his entire life. A corporate figure before joining politics. Between Asian and Western, what a vast contrast. Most politicians become rich after in power. In modern countries, they are rich to begin with.

K
Guest
K
Dear Yang That’s precisely the reason why KT was kicked out of Selangor…while investigating KT and his allegedly ill-gotten assets is a definite must, I am more interested in making sure that we don’t replace one tainted MB with another even more tainted leader. Selangor, being the richest state always had politicians attracted to it like bees to honey via questionable deals and unchecked developments. However, the new Pakatan regime, instead of putting a stop to these dirty deals, (appears to have) wholeheartedly embraced them. Talk to any Selangorians and they will tell you that the politicians who before GE… Read more »
daniel
Guest
daniel

K,
If I were the Prime Minister of Malaysia, I will pay elected representatives high pay. They deserve with their hard work. Singaporean minister is salaried at least $30k a month.

We should be happy to see elected representatives improve their lifestyle. Normal people work in private sector already earning much more than them.

So, what is a RM150k-RM120k car? Look around us, so many people driving them.

I think we should put away jealousy.

johnny
Guest
johnny

Talam looks like a …. compny than a listed co.

Rg
Guest
Rg

Think is a wise move by Khalid.He know what he is doing.Lets support his move.If I am not wrong (someone) still owns the Sabah Turf Club’s gaming outfit,the STC lottery in Sabah under Everise Venture Sdn.Bhd.This company of his I believe is now making money though it was a PN4 company some years back.Khalid would know whom to squeeze to recover the Selangor government interest.Be patience,I sure this is a wise move.

Penangite
Guest
Penangite

By rescuing Talam, TS Khalid managed to recover debts owed to the 3 GLCs. No loss in this case as MBI paid to the 3 GLCs (right pocket goes to the left pocket). Thus by executing this move, the Selangor Govt has a good chance of recouping part of the RM391M or possibly all of it. IF this move was not executed, the RM391m owed by Talam to the 3 GLCs is as good as bad debts.

anthony Tan
Guest
anthony Tan
I fully agreed with malaysiain When PKR took over Selangor, they were more or less needed to become a washing machine. They have to clean the … dirt that had been swept and kept under the carpet by BeEnd or rather UMNO over the years, (52 years?) and to enriched themselves. Therefore, let’s us give the PKR and Tan Sri Khalid and his team the time needed to open up more cans of worms and expose them to the public. The BeEnd has taken the Malaysian for a ride for too long and we Malaysians are not stupid as the… Read more »
kelvinfoo
Guest
kelvinfoo

TALAM DUA MUKA has no corporate knowledge in raising Talam issue. Just paste information here and there to attract readers. At the end, readers find no substances.

K
Guest
K

Is there a link between this bail out and the appointment of Anwar as the “economic advisor” to the Selangor govt ??

If this is not cronyism then what is ?

Yang
Guest
Yang

Just like you said “Is there a link ????“ which means it is not affirmative so what croynism are you talking about.

Don`t keep trumpeting until you are certain…….

Yusba
Guest
Yusba

I believe the State government as the controller of land has the muscle to force to pay up the debts in the shortest time possible. TS Khalid with his wide corporate experience surely knows his stuff.

Yong
Guest
Yong

Talam – strange name. Bad Feng shui maa.

malaysiain
Guest
malaysiain

Come on Guys, PR khalid is clearing the … left by the man caught for money laundering in Brisbane then the various MBs… all UMNO….

They … plundered and screwed the rakyat, we should support Khalid and make sure UMNO… dun come back into power.

aca
Guest
aca

sweetheart deals were given … and the present govt has to bear the burden!

where are you Toyoman?