Kang Hoo and nephew now directors at Tebrau

KUALA LUMPUR (July 4): Tebrau Teguh Bhd has appointed Tan Sri Lim Kang Hoo and his nephew Lim Keng Cheng directors effective on Tuesday. This follows the emergence of Iskandar Waterfront Holdings Sdn Bhd (IWH), in which Kang Hoo owns a stake, as a significant shareholder of Tebrau.

At the same time, IWH despatched the offer document to Tebrau shareholders on Tuesday to acquire the remaining 66.85% stake in the company at 76 sen per share.

In the offer document, Tebrau said it may see its assets merged with those of IWH following the completion of the latter's general offer (GO), adding that it may "rationalise and restructure" Tebrau, if the need arises.

"In doing so, IWH may effect necessary changes to the corporate structure that may or may not include the disposal and deployment of the assets of the Tebrau Teguh group," stated the offer document.

IWH said it will embark on a review of the enlarged group's businesses, and following the completion of the review may undertake a business amalgamation and a consolidation of properties and assets between the two groups.

"It should be noted the rationale of the acquisition and offer is to consolidate the landbanks held by Credence Resources Sdn Bhd and Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) spanning from the east to the west of the waterfront of Johor Baru," stated the offer document.

Tebrau is currently in possession of 437ha of waterfront land around the Tebrau Coast in Johor. Credence Resources holds more than 15% of the voting shares in IWH and is owned by Kang Hoo. KPRJ is the Johor state investment arm.

However, the offer document also stated that at the moment, none of these plans are set in stone until the exercise is completed.

IWH said it intends to keep Tebrau's listing status following the completion of the exercise, with the first closing date for the GO on July 24.

This story appeared in The Edge Financial Daily on July 4, 2012.