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KUALA LUMPUR: Shares of Sunrise Bhd and UEM Land Holdings Bhd rose in active trading on Thursday, Dec 9, ahead of the Dec 22 deadline for the former's minority shareholders to accept the latter's takeover offer.
Sunrise shares rose 29 sen to RM3.30 with 13.36 million shares traded. This was its biggest one-day gain since Nov 8's 70 sen share surge to RM3.22, when its shares resumed trading after the announcement of the corporate exercise. Since then, Sunrise's shares have traded ex for two dividends totalling 31.67 sen.
On Thursday, UEM Land's shares rose 15 sen to an all-time high of RM2.58 with 10.22 million shares transacted.
UEM Land's acquisition of Sunrise will create Malaysia's largest property company on Bursa Malaysia. With the recent rally in the share prices of both companies, the combined market capitalisation of the merged entity is estimated at around RM11 billion.
Credit Suisse said in a recent note that among the spate of mergers and acquisitions among property companies this year, it was most excited about the UEM Land-Sunrise merger, especially with Sunrise executive chairman Datuk Tong Kooi Ong leading UEM Land's charge in Iskandar Malaysia.
"We are positive about UEM Land's takeover of Sunrise because UEM Land would benefit from the 'Sunrise' brand name and Tong at the helm of the development committee of both UEM Land and Sunrise," it said.
Independent adviser AmInvestment Bank Bhd had advised Sunrise shareholders to accept the takeover offer from UEM Land at RM2.80 per share.
The offer would be satisfied via the issuance of UEM Land shares at an issue price of RM2.10 each on the basis of 1.33 shares for every one Sunrise share, or the issuance of redeemable cumulative preference shares (RCPS) in UEM Land on the basis of 2.8 RCPS for every Sunrise share.
The offer closes on Dec 22.
Sunrise shares rose 29 sen to RM3.30 with 13.36 million shares traded. This was its biggest one-day gain since Nov 8's 70 sen share surge to RM3.22, when its shares resumed trading after the announcement of the corporate exercise. Since then, Sunrise's shares have traded ex for two dividends totalling 31.67 sen.
On Thursday, UEM Land's shares rose 15 sen to an all-time high of RM2.58 with 10.22 million shares transacted.
UEM Land's acquisition of Sunrise will create Malaysia's largest property company on Bursa Malaysia. With the recent rally in the share prices of both companies, the combined market capitalisation of the merged entity is estimated at around RM11 billion.
Credit Suisse said in a recent note that among the spate of mergers and acquisitions among property companies this year, it was most excited about the UEM Land-Sunrise merger, especially with Sunrise executive chairman Datuk Tong Kooi Ong leading UEM Land's charge in Iskandar Malaysia.
"We are positive about UEM Land's takeover of Sunrise because UEM Land would benefit from the 'Sunrise' brand name and Tong at the helm of the development committee of both UEM Land and Sunrise," it said.
Independent adviser AmInvestment Bank Bhd had advised Sunrise shareholders to accept the takeover offer from UEM Land at RM2.80 per share.
The offer would be satisfied via the issuance of UEM Land shares at an issue price of RM2.10 each on the basis of 1.33 shares for every one Sunrise share, or the issuance of redeemable cumulative preference shares (RCPS) in UEM Land on the basis of 2.8 RCPS for every Sunrise share.
The offer closes on Dec 22.
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