KUALA LUMPUR (Mar 10): Sunsuria Bhd will see its executive chairman and substantial shareholder Datuk Ter Leong Yap injecting over 440 acres of landbank into the group, which will lead to the group's total project gross development value (GDV) rising to RM11 billion from RM300 million now.
In a statement today, Sunsuria (fundamental: 2.5; valuation: 1.2) said it has entered into several agreements with Ter for stakes in three property companies for a combined RM324.97 million. The companies have on-going and upcoming developments in Salak Tinggi and Setia Alam in Selangor and Medini in Johor.
"The collective proposals, which are expected to be completed by the second quarter of 2015, will expand Sunsuria’s existing land bank from 4.71 acres to 445 acres," it said.
"Taking into account the effective interest of Sunsuria in the projects arising from the proposals, this will translate into an effective GDV of RM4.5 billion for its future income stream," added Sunsuria.
Under the agreements signed between Sunsuria and Ter today, Sunsuria will acquire a 99.99% stake in Sunsuria Gateway Sdn Bhd (SGSB) for RM1 million; a 21% stake in Sunsuria Medini Sdn Bhd (SMSB) for RM54.97 million; and a 99% stake in Rentak Nusantara Sdn Bhd for RM32 million.
Sunsuria said all three acquisitions are to be funded from internal funds and from the fund raising exercise of a rights issue with warrants, which was approved by Sunsuria shareholders on May 12 last year.
Meanwhile, the acquisition of SGSB involves subscriptions of new and existing redeemable preference shares, which amount to RM100 million, to be paid to Ter.
Ter will then reinvest these proceeds into Sunsuria through the subscription of 102.04 million shares at an issue price of 98 sen.
All of these corporate exercises are expected to be completed by the second quarter of this year.
Trading in Sunsuria, which was suspended for two market days, will resume tomorrow.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)