Ekuinas to invest up to RM600m this year
The move will assist in direct capital investment of up to RM1 billion into the national economy, says the prime minister
Putrajaya: Ekuiti Nasional Bhd (Ekuinas) will invest up to RM600 million in up to five companies in any of its six priority sectors this year to boost Bumiputera participation in the local economic pie.
The six sectors are oil and gas, healthcare, retail and leisure, services, fast-moving consumer goods and education.
Prime Minister Datuk Seri Najib Razak said the move will assist in direct capital investment of up to RM1 billion into the national economy.
"I hope that with the investment, it would boost Bumiputera participation in the country's economic sector, mainly in equity ownership, management, employment and the supply chain," Najib said in his speech yesterday when unveiling Ekuinas first-year results announcement for the year ended December 2010.
Ekuinas was Najib's brainchild mooted during Invest Malaysia in May 2009.
Speaking at a press conference later, Ekuinas chief executive officer Datuk Abdul Rahman Ahmad said the company will buy stakes in both listed and non-listed local entities to boost Bumiputera participation in high growth companies.
The firms can either be Bumiputera or non-Bumiputera. Gaming and liquor companies are excluded.
Ekuinas bought stakes in four companies last year for RM482.7 million.
Abdul Rahman said Ekuinas has a war chest of between RM600 million and RM1 billion.
"With the exception of the healthcare, retail and leisure sectors, we have invested in the other four sectors.
"This year, we will invest more in up to five companies with a stake of at least 20 per cent each in any of the six sectors."
Last year, Ekuinas bought a 20 per cent stake in cosmetics concern the Alliance Cosmetics Group for RM39.9 million, a 24 per cent stake in oil and gas firm Tanjung Offshore Bhd for RM99.8 million, a 66 per cent stake in Konsortium Logistik Bhd for RM241 million and a 51 per cent stake in education group Asia Pacific Institute of Information Technology/University College of Technology and Innovation for RM102 million.
Meanwhile, for 2010 highlights, Ekuinas chairman Tan Sri Raja Arshad Raja Uda said it had received a RM500 million fund.
Together with its outsource investment partners, the company is managing RM1.4 billion.
Ekuinas also outsources by investing in other private equity funds, namely CIMB Private Equity, Kuwait Finance House Asset Management and Navis Capital Partners.
It made a net internal rate of return of 24.3 per cent, exceeding private equity benchmarks of between 12 per cent and an aspirational 20 per cent.
Its Bumiputera equity value increased to RM483.2 million from the RM380.6 million capital invested.
Ekuinas made a net profit of RM3.4 million in 2010 from a loss of RM3 million in 2009.
The net profit was derived from management fees and interest income.
Set up in September 2009, Ekuinas promotes equitable and sustainable Bumiputera economic participation via the creation of Malaysia's next generation of leading companies.
Owned by Yayasan Ekuiti Nasional, Ekuinas does not invest in property and construction sectors, leaving the areas to Permodalan Nasional Bhd or Khazanah Nasional Bhd.
The entity was first introduced during the tabling of Budget 2010 and was allocated a total of RM5 billion until 2015 under the 10th Malaysia Plan (2010-2015).
Out of the RM5 billion, Ekuinas received RM500 million in 2010, of which it had spent RM482.7 million, and will gradually receive the remaining RM4.5 billion by 2015.
It invests a minimum of 20 per cent stake in each company and will keep its investments between five and seven years before selling them. It also helps the companies it has invested in to get listed and will not venture overseas.
Putrajaya: Ekuiti Nasional Bhd (Ekuinas) will invest up to RM600 million in up to five companies in any of its six priority sectors this year to boost Bumiputera participation in the local economic pie.
The six sectors are oil and gas, healthcare, retail and leisure, services, fast-moving consumer goods and education.
"I hope that with the investment, it would boost Bumiputera participation in the country's economic sector, mainly in equity ownership, management, employment and the supply chain," Najib said in his speech yesterday when unveiling Ekuinas first-year results announcement for the year ended December 2010.
Ekuinas was Najib's brainchild mooted during Invest Malaysia in May 2009.
Speaking at a press conference later, Ekuinas chief executive officer Datuk Abdul Rahman Ahmad said the company will buy stakes in both listed and non-listed local entities to boost Bumiputera participation in high growth companies.
The firms can either be Bumiputera or non-Bumiputera. Gaming and liquor companies are excluded.
Ekuinas bought stakes in four companies last year for RM482.7 million.
Abdul Rahman said Ekuinas has a war chest of between RM600 million and RM1 billion.
"With the exception of the healthcare, retail and leisure sectors, we have invested in the other four sectors.
"This year, we will invest more in up to five companies with a stake of at least 20 per cent each in any of the six sectors."
Last year, Ekuinas bought a 20 per cent stake in cosmetics concern the Alliance Cosmetics Group for RM39.9 million, a 24 per cent stake in oil and gas firm Tanjung Offshore Bhd for RM99.8 million, a 66 per cent stake in Konsortium Logistik Bhd for RM241 million and a 51 per cent stake in education group Asia Pacific Institute of Information Technology/University College of Technology and Innovation for RM102 million.
Meanwhile, for 2010 highlights, Ekuinas chairman Tan Sri Raja Arshad Raja Uda said it had received a RM500 million fund.
Together with its outsource investment partners, the company is managing RM1.4 billion.
Ekuinas also outsources by investing in other private equity funds, namely CIMB Private Equity, Kuwait Finance House Asset Management and Navis Capital Partners.
It made a net internal rate of return of 24.3 per cent, exceeding private equity benchmarks of between 12 per cent and an aspirational 20 per cent.
Its Bumiputera equity value increased to RM483.2 million from the RM380.6 million capital invested.
Ekuinas made a net profit of RM3.4 million in 2010 from a loss of RM3 million in 2009.
The net profit was derived from management fees and interest income.
Set up in September 2009, Ekuinas promotes equitable and sustainable Bumiputera economic participation via the creation of Malaysia's next generation of leading companies.
Owned by Yayasan Ekuiti Nasional, Ekuinas does not invest in property and construction sectors, leaving the areas to Permodalan Nasional Bhd or Khazanah Nasional Bhd.
The entity was first introduced during the tabling of Budget 2010 and was allocated a total of RM5 billion until 2015 under the 10th Malaysia Plan (2010-2015).
Out of the RM5 billion, Ekuinas received RM500 million in 2010, of which it had spent RM482.7 million, and will gradually receive the remaining RM4.5 billion by 2015.
It invests a minimum of 20 per cent stake in each company and will keep its investments between five and seven years before selling them. It also helps the companies it has invested in to get listed and will not venture overseas.
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