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LBS Bina teams up with NWP to jointly develop Zhuhai project

KUALA LUMPUR (March 5): LBS Bina Group Bhd has entered into a heads of agreement (HoA) with NWP Holdings Bhd to jointly undertake a development project relating to the transformation of Zhuhai International Circuit (ZIC) in China, in which LBS has a 60% stake.

Under the HoA, LBS will be subscribing to 1.1 billion NWP shares, representing 73.7% of the latter's shares, for a cash consideration of RM93.5 million or 8.5 sen per share.

The purchase price represents a 35% discount against NWP's closing price of 13 sen on March 2. NWP shares were suspended from trading today pending a material announcement, and will resume tomorrow.

"LBS has obtained the approvals and will soon commence the development of ZIC into a mixed commercial development. The development project requires substantial funding and hence NWP is being identified to jointly undertake the project together," said the group in a filing today.

"Pursuant to the HoA, LBS and NWP shall enter into definitive agreements for the proposed development and the proposed subscription within 60 days from the date of HoA, or such further extended date as the parties may mutually agree upon," it added.

LBS said the proposed subscription in NWP will enable it to partly fund the ZIC project and retain control of the project via NWP.

Upon completion of LBS's subscription in NWP, a mandatory general offer will be triggered which will require LBS to acquire all the remaining NWP shares it does not own.

As a result of NWP's participation, the timber group will see its business diversified to include property development, property construction and property investment as its new businesses.

Shares of LBS were last traded at RM1.03. — theedgemarkets.com

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