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- Sunsuria said it has signed an agreement to acquire the additional 41% stake for RM21.46 million from four existing KLCG shareholders, namely Suez Capital Sdn Bhd, Scenic Starhill Sdn Bhd, Yedor Holdings Sdn Bhd and Yeoh Ah Tu.
KUALA LUMPUR (Dec 10): Sunsuria Bhd (KL:SUNSURIA) is raising its stake in KL City Gateway Sdn Bhd (KLCG), the developer of the Kampung Sungai Baru redevelopment project, to 61% from 20%.
In a bourse filing on Wednesday (Dec 10), Sunsuria said it has signed an agreement to acquire the additional 41% stake for RM21.46 million from four existing KLCG shareholders, namely Suez Capital Sdn Bhd, Scenic Starhill Sdn Bhd, Yedor Holdings Sdn Bhd and Yeoh Ah Tu.
The company had acquired the initial 20% stake in KLCG in December 2024.
Sunsuria said it has also signed a new shareholders’ agreement with Transworld Equity Sdn Bhd and Suez Capital, who collectively hold the remaining 39% of KLCG, to govern the rights and obligations of all shareholders following the acquisition.
As part of the deal, Sunsuria is required to provide financial assistance to KLCG, which includes shareholders’ advances and a corporate guarantee of up to RM387 million.
KLCG is redeveloping 9.66 acres of land in Kampung Sungai Baru, located next to Kampung Baru. Phase 1 of the project, covering 7.95 acres, will be a mixed-use integrated development with an estimated gross development value (GDV) of RM2.75 billion, comprising residential and serviced apartments, office suites, retail spaces and supporting public amenities.
Phase 2, spanning 1.71 acres, is still subject to planning assessments and regulatory approvals, said Sunsuria.
Sunsuria expects its increased stake in KLCG to contribute positively to earnings in stages over the tenure of Phase 1. The company said KLCG’s prospects remain positive, with anticipated contributions to the group’s earnings over the medium to long term.
It added that the additional shareholders’ advances are intended to fund working capital requirements for Phase 1 while the corporate guarantee will support the project’s banking facilities, which KLCG has not yet secured.
The acquisition is considered a related-party transaction due to the interests of Sunsuria’s executive chairman and major shareholder Tan Sri Ter Leong Yap and his daughter Ter Shin Nie, a non-independent executive director. His brother, Datuk Ter Leong Hing, is a director and major shareholder of Scenic Starhill, Suez Capital and Transworld.
Shares of Sunsuria closed unchanged at 44.5 sen on Wednesday, giving the company a market capitalisation of RM398.7 million. Year-to-date, the stock has fallen more than 8%.
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