UEM Sunrise Bhd may be on the list of companies that Khazanah Nasional Bhd plans to pare down shareholding in. 

The Edge, citing sources familiar with UEM Sunrise, report that the potential sale already has suitors. But Khazanah (with its 66.06% equity interest in UEM Sunrise) has not put the block up for sale. It is looking at the offers as part of due process. 

"I can guarantee that Khazanah did not put [UEM Sunrise] up for sale ...it's just that when offers or proposals come in, it has no choice but to weigh them, deliberate on them and look at the merits and demerits to the shareholder before making any decision," a source was quoted as saying. 

Tabung Haji is the only other substantial shareholder in UEM Sunrise, with 7.75% equity interest.

Garment outfit Jakel Group (which has a property arm - Jakel Land Sdn Bhd) has popped up as an interested party, though this cannot be confirmed at present. 

In early 2018, there were reports of Jakel being one of many companies that were said to have acquired 64 parcels of land from City Hall at cheap rates. Jakel reportedly acquired 5 choice parcels.

Also reported was that Jakel acquired a 12.34-acre parcel located in Cheras, at a price of RM133.49 million in November 2015. This comes to RM248 per sq ft. In September of last year, it was said to have acquired a 19.14-acre parcel of land fronting Jalan Duta near Istana Negara in Kuala Lumpur for RM646 million, or RM774.90 psf. 

Other parties are said to be interested in UEM Sunrise, but their names could not ascertained at this time.

having closed at 70 sen on Friday, UEM Sunrise's market capitalisation of RM3.18 billion. A 51% block would cost RM1.95 billion and a waiver from making a general offer.

Sans the waiver, the potential new shareholder would have to part with RM3.82 billion.

Should the new shareholder wish to take up 33% to ensure a general offer is not triggered, that would cost RM1.26 billion, including a 20% premium.

As at end-September, UEM Sunrise's net asset per share was RM1.56, or more than double its share price, making it unlikely that Khazanah will let go of the property developer based on its depressed share price. 

For the nine months ended September, UEM Sunrise posted a net profit of RM260.25 million on RM1.29 billion in revenue, up by over 66% compared to the previous corresponding period. 

Earnings per share for the same period was at 5.56 sen.

UEM Sunrise, in the notes that accompany its financials said: "The group recorded higher operating profit for the cumulative period compared with the preceding year's due to significantly higher contribution from land sales in Iskandar Puteri with its lower cost base, higher contribution from development cost savings for projects and lower operating expenses."

UEM Sunrise had RM4.93 billion worth of land held for property development.

Its FY2017 annual report reveal that the company has 9,816.9 acres in Johor, about 600 acres in Kuala Lumpur, Selangor and Negeri Sembilan, 2,405 acres in Tapah, Perak, and pockets of land in Melbourne, Australia, and Durban in South Africa. 

The estimated gross development value for the 600 acres is RM14.8 billion, as stated in its annual report, indicating GDV for total land bank that could be much higher. 

All things considered, Khazanah may not be likely to sell their block of shares in the developer. 

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