SunCity acquires Mega Capacity

KUALA LUMPUR: Sunway City Bhd yesterday entered into a Share Sale Agreement (SSA) with Sunway Pyramid Sdn Bhd (SPSB) for the proposed acquisition of Mega Capacity for RM2.8 million.

In a filing to Bursa Malaysia, the company said it also entered into a SSA with Reco Pyramid (M) Sdn Bhd (RPSB) to acquire 48% equity in SPSB and a SSA with Reco Resort Hotel (M) Sdn Bhd (RRHSB) to acquire 9.6 million ordinary shares of RM1 each in Sunway Resort Hotel Sdn Bhd (SRH), representing a 48% stake, for RM12.144 million, subject to post-closing working capital adjustment.

“RPSB and RRHSB have expressed their interest to dispose of their respective 48% stake in SPSB and SRH upon completion of the disposal of Sunway Pyramid and disposal of hotels which were owned by SPSB and SRH respectively to Sunway REIT,” it said.

Sunway City will continue to engage in the hotel business through its subsidiaries as SRH is the master lessee of the hotels, and Sunway International Hotels & Resorts Sdn Bhd is the operator of the hotels as well as being engaged in the management of Sunway Pyramid shopping mall via Sunway REIT Management Sdn Bhd.

By owning 100% of SRH and SPSB, Sunway City will have greater flexibility in the management and enhancement of these businesses.

The proposed acquisition of Mega Capacity was completed yesterday while the proposed acquisition of SRH is expected to be completed by the second half of 2010 and the proposed acquisition of SPSB is expected to be completed by the first half of 2012. — Bernama

This article appeared in The Edge Financial Daily, July 13, 2010.

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