The proposed merger of Iskandar Waterfront Holdings Sdn Bhd (IWH) and Iskandar Waterfront City Bhd (IWC) will create one of Bursa Malaysia’s biggest property developers with RM30 billion worth of land, reported New Straits Times.
IWH, which is controlled by Tan Sri Lim Kang Hoo, has proposed to acquire the remaining 61.7 percent stake in IWC that it does not already own at RM1.50 a share.
The RM1.50 offer price for the proposed merger represents a 14 percent premium over the 30-day volume weighted average price of IWC up to 3 March.
In a filing with Bursa Malaysia, IWH noted that IWC board has 30 days until 19 April to deliberate on the offer.
“Upon completion of the proposed merger, IWH will assume the listing status of IWC on the Main Board of Bursa Malaysia, which will see the establishment of one of the largest listed strategic master property developers,” said IWH.
Along with the proposed merger, IWH will also embark on a restructuring exercise with its executive vice chairman Tan Sri Lim Kang Hoo through internal rationalisation of minority stakes in the IWH Group as well as various Johor state entities, including Johor state government investment unit, Kumpulan Prasarana Rakyat Johor Sdn Bhd, to consolidate landbank under IWH.
With the restructuring, around 3,593 acres of land with an open market value of RM4.1 billion will be injected into IWH.
Image sourced from NST
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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