OCK Group launches RM150m sukuk programme

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KUALA LUMPUR, Sept 23 — OCK Group Bhd, which launched its RM150 million sukuk programme today, intends to utilise the proceeds to execute expansion plans for its telecommunications network services segment.

OCK Group, a local telecommunications network services company, plans to build and acquire more telecommunication towers going forward.

“This plan will contribute to the group’s increasing recurring income through our business plan to lease towers back to telecommunications operators,” OCK Group said in a statement issued at the Sukuk launch today.

BNP Paribas was appointed the Sukuk programme’s principal advisor, lead arranger, shariah adviser, as well as, the joint lead manager of the 20-year tenure sukuk with Bank Muamalat.

OCK Group Chief Executive Officer and Managing Director Sam Oii said the company currently owns over 60 telecommunication towers nationwide and is eyeing to increase the number through building new sites or acquiring existing ones.

He said there are basically two types of towers, ground based and rooftop, whereby the former costs around RM250,000 and the latter, RM60,000.

“How many we buy or acquire depends on the demand from telecommunication operators. Right now, we are seeing an increasing demand for rooftop towers,” Ooi told a press conference here today.

He said its telecommunication network services business segment contributes 70-80 per cent to the group’s revenue on average, with the balance attributed to its green technology and solar business segment.

He said revenue contribution from the company’s overseas business would increase 15-20 per cent next year, from being non-existent last year, as it has recently established a presence in Myanmar, Thailand and Cambodia.

On the group’s target to upgrade the company to the main market of Bursa Malaysia from the ACE Market currently, Ooi said this was due to it meeting the qualification for a main market-listed company, and was taking the necessary steps for an upgrading soon.

He, however, declined to elaborate. — Bernama

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