PanGlobal Bhd wants to focus on property investment and development as well as timber and coal operations after its restructuring exercise, which includes the sale of PanGlobal Insurance Bhd.

The company plans to develop a RM90 million hotel and service apartment project in Kuching as it moves further into property development.

Its group chief executive officer Bernard Wong said: “PanGlobal will be focussing on properties, timber and coal mining, which are all profitable.

“The coal business is coming along strongly with RM6 million to RM8 million net profit, and timber with RM8 million to RM10 million net profit.”

Speaking to reporters after the company’s EGM in Kuala Lumpur on Jan 22, he said the group would be going into more hotel and resort development, catering to the niche market.

“We have a building in Johor and a few developments coming up at prime areas in Kuching. We are about to start on a project in Sarawak, costing an estimated RM90 million and which will take two years to be completed,” he said

At the EGM, shareholders approved the sale of PanGlobal Insurance to AMMB Holdings Bhd, which is currently carrying out a due diligence exercise on the general insurance company.

Wong said PanGlobal has targeted to sell the insurance unit at not less than RM150 million.

PanGlobal’s proposed restructuring scheme also involves a capital reduction with the cancellation of 60 sen for every existing RM1 share and the consolidation of the 140.13 million shares of 40 sen each into 112.1 million shares of 50 sen each besides a renounceable rights issue of 420.39 million shares on the basis of 15 shares for every four existing shares held after the capital reduction and the consolidation exercise.

The exercise, expected to be finalised by end-March, is to address its debt situation and to put the group into a stronger financial footing.

Wong forecasts the group’s profit over the next three years (after the restructuring exercise) to grow about 18% to 25%.