| RH PETROGAS' chairman is 10th richest man in Malaysia, and a serial successful entrepreneur |
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Written by Leong Chan Teik
Friday, 15 October 2010 00:00
a) timber
b) oil & gas
c) palm oil
d) media publishing
d) salmon farming
e) mining
f) property development
g) optical fibre manufacturing
A rare serial entrepreneur, Tan Sri Datuk Sir Tiong Hiew King has money in all these ventures and more, which have contributed to his net worth of US$1.2 billion. He was ranked the 10th richest Malaysian on the Forbes list for 2010.
Despite his immense wealth and the award of knighthood by Queen Elizabeth in 2009, Tan Sri, 75, is relatively low profile and not many Singaporeans know him well.
He is, of course, better known in his home country where he owns significant business interests and continues to live and work.
Singapore-listed RH Petrogas' chairman is Tan Sri Datuk Sir Tiong Hiew King, the Rupert Murdoch of the Chinese media, and the tycoon behind the largest forestry group in the world.
HOW MANY successful local or regional entrepreneurs do you know who is into businesses as diverse as the following?
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And now....RH Petrogas:
Tan Sri Datuk Sir Tiong Hiew King, executive chairman, RH Petrogas
RH Petrogas Limited aims to be a leading independent oil and gas company in the region.
Its first oil and gas project is a production sharing contract with China National Petroleum Corporation to jointly develop and produce hydrocarbon resources in Block 1 of Fuyu in the Songliao Basin, Jilin Province, the PRC.
RH Petrogas has also successfully completed the acquisition of Singapore-based Orchard Energy on 14 June 2010.
Orchard Energy is an oil and gas exploration and production company which holds a production sharing contract in relation to the exploration and production of petroleum in West Belida Block, Jambi, South Sumatra, Indonesia, covering an area of approximately 1,402 sq km.
Kim Eng initiates BUY recommendation with Target Price at $1.35
We initiate coverage on RH Petrogas (RHP) with
a BUY recommendation and target price of
$1.35/share, which is based on a conservative
sum‐of‐the‐parts valuation of its oilfield assets.
RHP is the Rimbunan Hijau Group’s vehicle for its
ambitions into the energy sector. Formerly an
electronics company called Tri‐M, RHP has been
transformed by the injection of Chinese oilfield
assets, the acquisition of Orchard Energy from
Temasek Holdings, and a subsequent oilfield
purchase in West Papua, Indonesia. We expect
the company to cement its place as a major
player in the regional upstream energy sector.
RHP acquired Kingworld Resources (KRL) in
2008 for $110m from within the private holdings
of the Tiong family. KRL’s primary asset is an
oilfield concession in Northeast China. We
conservatively estimate that this concession
alone is worth a minimum of $625m, or
$1.29/share, and potentially worth several
multiples over this base value.
In 2010, Orchard Energy along with its West
Belida concession was acquired from Temasek
Holdings. The real jewel in the crown from this
deal is the inheritance of Orchard Energy’s
capable management team, led by industry
veteran Dr Tony Tan. RHP subsequently wasted
no time in acquiring a 2,000‐sq‐km oilfield
concession in West Papua, Indonesia, with net
attributable reserves of 14.6m barrels and
average attributable production of more than
5,000 barrels per day.
RHP is backed by the Rimbunan Hijau (RH)
Group, one of the largest conglomerates in
Malaysia. RH has a wide range of business
interests, with timber and forestry being the
mainstay. RHP is therefore able to leverage the
broader capabilities and financial strength of the
group. It is also likely that there will be more
oilfield assets injected into RHP from the RH
Group.
We believe RHP will issue more new equity in
order to finance its development plans. Under
the terms of the sale of Orchard Energy,
Temasek may also become a significant
shareholder of RHP if it chooses to subscribe to
the new equity. In addition, RHP can lean on the
considerable financial resources of the RH
Group, as evidenced by its West Papua oilfield
acquisition.
Life Is Great
EGM on 14 Dec. 2010 to approve 2 major transaction.
Oil price $89.19 share price $0.54
I still think share price can go higher next week.
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