Malaya Glass is to change its name to Fraser & Neave (Malaysia) and F&N will have to cut its stake in the former to 51% by 1998, to comply with Malaysia“s National Development Policy. This will invol…
Malaya Glass is to change its name to Fraser & Neave (Malaysia) and F&N will have to cut its stake in the former to 51% by 1998, to comply with Malaysia“s National Development Policy. This will involve the divestment of some 50 million Malaya Glass shares or 34.4% to bumiputra investors. On its proposed bonus issue, F&N said it is seeking to improve the affordability of its shares. The group has also promised that it will maintain its 1995 dividend rate even after the bonus issue. F&N declared a total dividend of 17% per share after tax for 1995. Group chairman Michael Fam, of Fraser & Neave (F&N), is expecting future earnings growth to be boosted by improved contributions from its soft drink division as its regional ventures get under way, it was announced in the annual report. Of its new regional soft drink operations in Vietnam, Sri Lanka, Cambodia and Nepal, only the latter was profitable in 1995. Mr. Fam said regional development and corporate office costs continued to impair profitability but these new regional activities are expected to start making positive contributions to results in the coming year. The soft drink division, which showed a 22% improvement in pre-tax profit for 1995, should see “continued solid growth”. This should partially cushion an “inevitable dip in earnings from the property division in 1997” when the two unusually profitable projects – The Anchorage and Valley Park – have been completed substantially, said Mr. Fam. F&N expects earnings from its property division to peak this year.