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
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
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,"
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
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,"
"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