The proposed merger of Iskandar Waterfront City Bhd (IWC) with Iskandar Waterfront Holdings Sdn Bhd (IWH) is still on and will see the injection of RM4.3 billion worth of land in IWH, reported The Star.
This comes as IWH eyes to enter into various sale and purchase agreements to acquire properties in Johor controlled indirectly or directly by Kumpulan Prasarana Rakyat Johor Sdn Bhd, IWH executive vice-chairman and director Tan Sri Lim Kang Hoo and other Johor state entities, revealed IWC in a Bursa Malaysia filing.
The restructuring exercise involves IWH purchasing the remaining 61.7 percent stake in IWC at RM1.50 per IWC share, which will be satisfied through the issuance of IWH shares on the basis of one new IWH share for one existing IWC share, and a proposed one-into-two IWC share split.
IWC noted that the proposed merger scheme is set to be completed in Q1 2018.
“Following the completion of the corporate exercise, IWH will have a total land bank of approximately 6,773 acres in Johor Baru, with an estimated open market value of approximately RM30 billion as assessed by the appointed independent valuers,” said IWH.
Separately, IWC modified its agreement with Greenland Holdings Group Ltd, its partner in an RM18.4 billion waterfront city project in Johor.
Tebrau Bay Sdn Bhd, a unit of IWC, signed a supplemental agreement on the disposal of its partially-submerged land in Plentong, Johor Bahru for RM2.4 billion to special-purpose vehicle Greenland Tebrau Sdn Bhd (GTSB).
IWC, via unit Southern Crest Development Sdn Bhd, owns a 20 percent stake in GTSB, while the remaining 80 percent is held by the Greenland group, through Greenland Malaysia Real Estate Operator Sdn Bhd.
GTSB proposed a change in the tranche completion’s sequence to facilitate changes to the development plan for the land.
Other changes include subjecting the disposal consideration for each land tranche to the approvals required under National Land Code Act’s Section 433B and completion of the land reclamation prior to the date stipulated for the balance payment by GTSB for the respective lots.
The proposed land disposal is set to be completed in Q2 2020 from Q1 2018 previously.
Among developments to look out for in Johor are:
Image sourced from The Star
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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