IOI Properties Group Bhd has entered into a conditional share sale agreement with Tan Sri Lee Shin Cheng and Puan Sri Hoong May Kuan to acquire the entire equity interest in Mayang Development Sdn Bhd for RM1.26 billion.
The entire equity interest in Mayang development consist of 250,000 ordinary shares of RM1 each, the company said in a filing to Bursa Malaysia.
The group also proposed to acquire the entire equity interest of Nusa Properties Sdn Bhd, consisting six million ordinary shares of RM1 each, from the same individuals for RM319.83 million.
For the Mayang Development acquisition, IOI Properties would pay RM126.35 million, in cash, while the remaining RM1.14 billion would be satisfied with the issuance of 514.53 million new ordinary shares of RM1.00 each at an issue price of RM2.21 per share.
For the Nusa Properties acquisition, it said RM31.98 million would be satisfied via cash while the remaining RM287.84 million would be satisfied via the issuance of 130.25 million new IOI Properties shares at RM2.21 per share.
The landbank of the both companies, totalling 161.75 hectares, is located within the IOI City Resort and is strategically fronting the entrance of Putrajaya and next to the South Klang Valley Expressway.
Upon completion of the acquisitions, IOI Properties’ landbank in IOI Resort City would be enlarged to 181.99 hectares from its existing 20.23 hectares.
IOI Properties said the landbank of the both companies were expected to generate an indicative Gross Development Value of approximately RM20 billion.
“The proposed acquisitions will enable the group to enhance its existing and future product offerings within the IOI Resort City and provide it with the opportunity to extend the lifespan of its IOI Resort City development project.
“Furthermore, it is expected that the additional landbank will allow the group to embark on the development of the second phase of the project and to capitalise on the success of the mall,” it said.
Read more at http://focus.iproperty.com.my/news/184/ioi-properties-group-bhd-to-acquire-mayang-development-sdn-bhd-for-rm126-billion#vYcgK8hVWHrTrl5Z.99