BIG DEAL: IOI Properties buys land worth RM1.58 bil from controlling shareholders

KUALA LUMPUR (Oct 20): IOI Properties Group Bhd is acquiring Mayang Development Sdn Bhd and Nusa Properties Sdn Bhd for RM1.58 billion from the Lee family, under a cash and share deal.

According to IOI Properties' filing with the exchange, Mayang and Nusa Properties have land located near IOI Properties' development in Putrajaya.

IOI Properties said it signed conditional share sale agreements with Tan Sri Lee Shin Cheng, Puan Sri Hoong May Kuan and Datuk Lee Yeow Chor, for their respective 100% stakes in Mayang and Nusa Properties.

IOI Properties said it was buying Mayang for RM1.26 billion, while Nusa Properties was valued at RM319.83 million. IOI Properties said the acquisitions would be financed by a combination of cash and new IOI Properties shares.

“The landbank of the target companies is located within IOI ResortCity and is strategically fronting the entrance of Putrajaya, and next to the South Klang Valley Expressway.

“It is also adjacent to the current development of IOIPG (IOI Properties) Group. The target companies have landbank totalling 399.7 acres in area and post completion of the proposed acquisitions, the landbank of the IOIPG Group in IOI Resort City will be enlarged to 449.7 acres, from its existing 50 acres,” IOI Properties said.

According to IOI Properties, the landbank of Mayang and Nusa Properties is expected to generate about RM20 billion in gross development value.

“The proposed acquisitions are envisaged to offer significant development potential for IOI ResortCity and allow IOIPG to proceed with the future expansion of IOI ResortCity, in an efficient and structured manner,” said IOI Properties.

IOI Properties expects to complete the acquisitions by March 2016, being the third quarter of financial year ending June 30, 2016.
 


Today, trading in IOI Properties' shares has been suspended up to 5pm. Trading resumes tomorrow (Oct 21).

IOI Properties was last traded at RM2.12 yesterday (Oct 19), for a market capitalisation of RM7.99 billion.

Shin Cheng, Hoong and Yeow Chor own Vertical Capacity Sdn Bhd, which holds about 50% in IOI Properties. Hoong is Shin Cheng's wife, while Yeow Chor is their son. -- theedgemarkets.com