Khazanah portfolio at record RM75bil
Realisable asset value of its investments rises to RM112.6b
KUALA LUMPUR: Khazanah Nasional Bhd has reaped the benefits of improving financial and economic conditions.
The Government's investment arm saw the net worth of its portfolio rise 39.4%, or RM21.2bil, to a record RM75bil as at Dec 31, 2010 from RM53.8bil a year earlier.
The realisable asset value (RAV) of its investments also improved to RM112.6bil as at Dec 31 from RM91.2bil in 2009.
Total shareholders' return on Khazanah's portfolio of listed companies in 2010 stood at 33.4%, outperforming the FTSE Bursa Malaysia KL Composite Index's total return of 23.3% over the same period.
“Last year was a very good year for us from the standpoint of financial performance,'' managing director Tan Sri Azman Mokhtar said at Khazanah's annual review briefing here yesterday.
This year the state investment firm would be “fairly cautious” given the current uncertain market conditions. “It'll be silly not to be, one has to be nimble in this type of market. That will remain our stance,” he said.
Azman said Khazanah, which holds stakes in major government-linked companies (GLCs) like Tenaga Nasional Bhd, was “not in a hurry” to divest its various stakes as its financial position was “pretty secure”.
“We will sell into strength,” he said.
Khazanah's RAV over liabilities cover stood at 2.9 times as at Dec 31, 2010 compared with 2.4 times in 2009. The ratio is an indication of the strength of its balance sheet.
“Six and a half years into the GLC Transformation Programme, GLCs are firmly on a growth trajectory after the global financial crisis of 2008/2009,” Azman said.
Khazanah raised RM6.2bil last year from divesting its stakes in companies that included Malaysia Airports Holdings Bhd, CIMB Group Holdings Bhd and DRB-Hicom Bhd.
Estimated gains from those divestments totalled RM3.5bil.
Azman did not say how much Khazanah planned to divest this year but indicated that it was in the process of executing the divestment of several significant stakes including those in toll concessionaire PLUS Expressways Bhd, banking group EON Capital Bhd and Pos Malaysia Bhd.
On investments, Azman said Khazanah and its companies were “on track” to spending the entire RM58bil allocated for 2009 to 2011.
It spent about RM36bil from 2004 to 2008 for investments.
He also revealed that the state investment arm received about RM2.4bil in dividend income last year against about RM1.9bil a year earlier.
Last year saw several key investment and financing transactions for Khazanah including the RM8.1bil takeover of Singapore medical group Parkway Holdings and the formation of an investment partnership with non-GLC private sector in developing Teluk Datai, Langkawi.
Azman said Khazanah would focus on three broad areas this year, namely financial portfolio value creation, strategic value creation through catalytic activities and institutionalisation, ie. to continue with its efforts to develop risk management and human capital, among others.
By YVONNE TAN
yvonne@thestar.com.my
KUALA LUMPUR: Khazanah Nasional Bhd has reaped the benefits of improving financial and economic conditions.
The Government's investment arm saw the net worth of its portfolio rise 39.4%, or RM21.2bil, to a record RM75bil as at Dec 31, 2010 from RM53.8bil a year earlier.
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| Tan Sri Azman Mokhtar speaking at the Khazanah Annual Review 2011 on Tuesday. With him are director, managing director’s office Ahmad Farouk Mohammed (left) and executive director/chief operating officer Datuk Mohamad Zainal Shaari. |
Total shareholders' return on Khazanah's portfolio of listed companies in 2010 stood at 33.4%, outperforming the FTSE Bursa Malaysia KL Composite Index's total return of 23.3% over the same period.
“Last year was a very good year for us from the standpoint of financial performance,'' managing director Tan Sri Azman Mokhtar said at Khazanah's annual review briefing here yesterday.
This year the state investment firm would be “fairly cautious” given the current uncertain market conditions. “It'll be silly not to be, one has to be nimble in this type of market. That will remain our stance,” he said.
Azman said Khazanah, which holds stakes in major government-linked companies (GLCs) like Tenaga Nasional Bhd, was “not in a hurry” to divest its various stakes as its financial position was “pretty secure”.
“We will sell into strength,” he said.
Khazanah's RAV over liabilities cover stood at 2.9 times as at Dec 31, 2010 compared with 2.4 times in 2009. The ratio is an indication of the strength of its balance sheet.
“Six and a half years into the GLC Transformation Programme, GLCs are firmly on a growth trajectory after the global financial crisis of 2008/2009,” Azman said.
Khazanah raised RM6.2bil last year from divesting its stakes in companies that included Malaysia Airports Holdings Bhd, CIMB Group Holdings Bhd and DRB-Hicom Bhd.
Azman did not say how much Khazanah planned to divest this year but indicated that it was in the process of executing the divestment of several significant stakes including those in toll concessionaire PLUS Expressways Bhd, banking group EON Capital Bhd and Pos Malaysia Bhd.
On investments, Azman said Khazanah and its companies were “on track” to spending the entire RM58bil allocated for 2009 to 2011.
It spent about RM36bil from 2004 to 2008 for investments.
He also revealed that the state investment arm received about RM2.4bil in dividend income last year against about RM1.9bil a year earlier.
Last year saw several key investment and financing transactions for Khazanah including the RM8.1bil takeover of Singapore medical group Parkway Holdings and the formation of an investment partnership with non-GLC private sector in developing Teluk Datai, Langkawi.
Azman said Khazanah would focus on three broad areas this year, namely financial portfolio value creation, strategic value creation through catalytic activities and institutionalisation, ie. to continue with its efforts to develop risk management and human capital, among others.
By YVONNE TAN
yvonne@thestar.com.my
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