Wilmar names new COO, eyes property projects

KUALA LUMPUR (Dec 16): PPB Group Bhd’s 18.3%-owned associate, Wilmar International Ltd, is capitalising on newly appointed chief operating officer (COO) Pua Seck Guan’s expertise to undertake property projects.

Singapore’s The Straits Times quoted Wilmar chairman and chief executive Kuok Khoon Hong as saying yesterday that Pua, who is also Perennial Real Estate chief executive, could open the door to ventures into real estate projects for agribusiness-based Wilmar.

“Pua has extensive leadership, management and entrepreneurial skills and experience in growing businesses in different markets.

“These qualities make him suitable to manage Wilmar’s global operations. Experience in agribusiness is an advantage, but not essential, as he can learn the business,” Kuok said.

The daily noted that Perennial has a portfolio of properties developed or managed in Singapore, China, Malaysia and Ghana. Wilmar has an effective interest of about 13.1% in Perennial.

Wilmar and Perennial are both listed on the Singapore exchange, while PPB is listed on Bursa Malaysia. At the close of trading hours yesterday, PPB shares settled two sen or 0.13% higher at RM15.38, with a market capitalisation of RM18.33 billion.

Kuok said Wilmar had, in the past, declined government real estate project offers as the group did not have expertise in property development.

“In many places where Wilmar has significant operations, we have been offered attractive projects by the local government, which we declined as we did not have expertise in property development.

“With the association with Perennial through Pua, these projects can be undertaken by Perennial with Wilmar maybe taking a small stake. Successful development of these projects will enhance Wilmar’s relationship with the government and standing of the company in those places,” Kuok said.

Nevertheless, Kuok stressed that Pua was not appointed to help Wilmar build a real estate business.

“We made Pua the COO of Wilmar not for his property expertise, but for his management skills and his ability to work with partners. Property is unlikely to have anywhere close to the potential we have in agribusiness.”

This article first appeared in The Edge Financial Daily, on Dec 16, 2015. Subscribe to The Edge Financial Daily here.