Sunsuria’s asset injection to be finalised by June 18

KUALA LUMPUR: Sunsuria Bhd, formerly Malaysia AICA Bhd, is expected to seal its acquisition of four companies and a bungalow project, all of which are linked to its executive chairman and substantial shareholder Datuk Ter Leong Yap, within 30 days following the signing of a heads of agreement (HoA).

Sunsuria yesterday entered into a HoA with Sunsuria Development Sdn Bhd, Rentak Nusantara Sdn Bhd and Strata Johan Sdn Bhd, which could see the injection of a 50% interest in the Xiamen University Township Development in Salak Tinggi, Selangor (estimated GDV of RM4.5 billion), a 75% stake in a proposed mixed development in Medini Iskandar, Johor (estimated GDV of RM4.5 billion), an 81% interest in 7th Avenue 2 Development in Setia Alam, Selangor (estimated GDV of RM1.1 billion), and an ongoing residential development project with 49 units of bungalow lots together with infrastructure in Bukit Raja, Selangor (estimated GDV of RM81 million).

Sunsuria’s announcement confirms The Edge Financial Daily’s report yesterday of Ter’s plans to boost Sunsuria’s status to become a midsized property development company through a series of asset injections, which are expected to contribute a combined gross development value of RM10.2 billion.

“The purchase considerations for the identified project and identified companies have yet to be determined at this juncture,” said Sunsuria in a filing with Bursa Malaysia yesterday.

Parties to the HoA have obliged to try and execute all necessary agreements for Sunsuria’s acquisitions within the 30-day “exclusivity period”, which expires on June 18.

Sunsuria said a detailed announcement will be made once the acquisitions have been finalised.

Sunsuria also said it plans to fund the proposed acquisitions via a renounceable rights issue, which was approved by its shareholders on May 12, a private placement of 10% of its enlarged issued share capital, borrowings and/or internal funds.

Shares in Sunsuria closed up 3 sen or 1.85% at RM1.65 yesterday, giving it a market capitalisation of RM261.3 million.

This article first appeared in The Edge Financial Daily, on May 20, 2014.


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