NADICORP Holdings Sdn Bhd, controlled by Datuk Mohd Nadzmi Mohd Salleh, expects to complete its acquisition of troubled Park May Bhd by the year-end.
Mohd Nadzmi said Nadicorp will submit its regularisation plan for Park May to the relevant authorities next month, after which it normally takes five to seven months to complete the acquisition of a Practice Note 4 company, depending on the court cases.
"As such, we hope to complete everything before the end of this year," he told reporters after the commercial launch of Badanbas Sdn Bhd's superstructure buses by Transport Minister Datuk Seri Chan Kong Choy in Kajang yesterday.
Nadicorp is in the midst of injecting eight bus operating subsidiaries valued at RM125 million into Park May, whose listing status will be assumed by newly-incorporated company Konsortium Transnasional Bhd.
The eight are Kenderaan Langkasuka Sdn Bhd, Kenderaan Klang Banting Bhd, Kenderaan Labu Sendayan Sdn Bhd, Starise Sdn Bhd, Transnasional Express Sdn Bhd, Syarikat Tanjong Keramat Temerloh Utara Omnibus Bhd, Syarikat Rembau Tampin Sdn Bhd and Syarikat Kenderaan Melayu Kelantan Bhd.
Nadicorp's ninth bus operating subsidiary, Sistem Kenderaan Seremban-Kuala Lumpur Sdn Bhd, will not be involved in the injection exercise.
Asked whether Nadicorp is interested in taking over Intrakota Consolidated Bhd, Mohd Nadzmi said: "The Government (via Syarikat Prasarana Negara Bhd (SPNB) has decided to buy the buses from the bus company, with Nadicorp managing those buses. That was the original plan."
On the integration of the Klang Valley's public transportation system, he said it was still under negotiation with the Government. He declined to elaborate.
"We are proceeding with discussions for the final handing over of the infrastructure to us to manage," he said.
Badanbas, a wholly-owned subsidiary of Nadicorp, expects to post revenue of RM30 million this year compared with some RM10 million in 2003. This translates into a 10 per cent contribution to Nadicorp.
For the year ended December 31 2002, Nadicorp raked in RM20 million in net profit on a turnover of RM235 million.
The local busmaker sold 40 superstructure coaches last year and expects the number to increase to 200 this year, hitting its annual capacity of 200 units.
"Badanbas has no problem in ramming up its production to 500 buses per year, but the question is whether that figure is sustainable.
"What's the point of building 500 coaches now and in subsequent years the demand drops to 300 buses? Then you'll have a big headache with excess stock," said Mohd Nadzmi.
It is understood that the country's current demand for buses is some 800 new units per year.
Mohd Nadzmi also believes that there are currently too many bus operators in the country.
"There is an oversupply of buses running on the road with a low load factor and that's not good. However, the Government continues to issue new permits," he said.
"Polytechnic Merlimau was the first customer outside the Nadicorp group of companies (to purchase the superstructure coaches), but we are certainly looking beyond Transnasional to sustain our long-term presence and market leadership in the industry.
"We hope to see a 50-50 contribution in coming years," said Mohd Nadzmi, adding that it has already started taking orders from other bus operators as well as the Education Ministry.
Once its marketing plans are put in place, he said, Badanbas is confident of selling more superstructure buses to state governments, quasi-government bodies, institutions of higher learning and other private enterprises.
The estimated price of a Badanbas superstructure bus ranges from RM120,000 to RM150,000 per unit.
A superstructure bus is one that is built with the latest construction technology and incorporates advanced design technology that meets the highest international standards.
Badanbas buses comply with the Australian Design Rules, which are claimed to be