Sunway City acquiring 45% stake in Sunway Lagoon for RM128.57m

KUALA LUMPUR: Sunway City Bhd (SunCity) has proposed to acquire a 45% stake in theme park operator Sunway Lagoon Sdn Bhd (SLSB) for RM128.57 million and raise its shareholding to 96%.

SunCity, which owns 51% of SLSB, said it was acquiring the shares from Datuk Lim Say Chong and Oh Kim Sun respectively.  Lim and Oh held 1.9 million and 2.6 million RM1 shares each, representing 19% and 26% equity interests respectively in SLSB.

“By owning 96% of SLSB and with the same management effort, SunCity will have greater share of the future earnings of SLSB group,” it said in a statement to Bursa Malaysia on Thursday, Sept 2.

The acquisition would be paid for using internally generated funds.

For the 18-month financial period ended Dec 31, 2009, SLSB reported a group profit after tax of RM53.3 million. It had contributed to 12% of SunCity’s profit after tax and minority interest (PATAMI) excluding revaluation gain during the same period.

SLSB also holds 123 acres of land in Bandar Sunway and 46 hectares of land in Sydney, Australia.

SunCity said the purchase price was arrived at on a willing buyer-willing seller basis after considering the net tangible assets of SLSB and the future earnings potential of its subsidiaries.

“With improved consumers’ sentiment during the current year, SLSB anticipates at least 20% increase in the visitorship for Sunway Lagoon. The many international events held in Sunway Lagoon e.g. MTV World Stage that was broadcasted over 150 countries, continues to attract higher foreign visitorship,” it said.

“As for the Sunway South Quay development, in addition to the successful enbloc sale to a Korean purchaser which will be handed over early next year, the recent launch of the 242-unit condominium known as A'marine, had received a strong take-up rate. This paves a strong confidence for future launches.

The 46 hectares of land in Western Sydney, is strategically located in one of the most sought-after logistic precinct in Sydney, Australia, out of which 20% had been sold during the current year and pending completion,” it added.