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Tambun Indah raises stake in Pearl City development

 

TAMBUN-ACQUISITION
TAMBUN INDAH RAISES STAKE IN PEARL CITY DEVELOPMENT
GEORGE TOWN, June 21 (Bernama) -- Property developer Tambun Indah Land Bhd
expects better profits ahead with the proposed acquisitions of a minority
equity interest in two subsidiaries undertaking the development of the Pearl
City township in mainland Penang.
In a statement today, Tambun Indah Land said it plans to acquire the
remaining 30 per cent stake in Tambun Indah Development Sdn Bhd (TIDSB),
comprising 300,000 ordinary shares and 8.04 million redeemable preference
shares.
It said Tambun Indah Land also hopes to acquire a 40 per cent stake in
Palmington Sdn Bhd (PSB), consisting of 2.3 million ordinary shares, from
Pembangunan Bandar Mutiara Sdn Bhd, a 100 per cent subsidiary of Nadayu
Properties Bhd, for a purchase consideration of RM112.2 million.
"The purchase consideration will be satisfied via a combination of RM40.7
million cash payment and an issuance of 55.0 million new Tambun Indah shares at
an issue price of RM1.30 per share.
"The cash payment will be funded by internal funds and bank borrowings, as
well as partly from the proposed private placement of 15.0 million new shares
to identified institutional investors," it said.
It added that the corporate exercises of acquisition and private placement
will result in Tambun Indah enlarging its share capital by 70.0 million ordinary
shares of RM0.50 par, from the current share capital of 318.6 million shares to
388.6 million shares.
It said the proposed acquisitions are expected to be completed in fourth
quarter of 2013 and will be subjected to approval from the relevant authorities,
as well as shareholders in an Extraordinary General Meeting (EGM) at a later
date.
However, Tambun Indah Land Managing Director Teh Kiak Seng said the
acquisition is a strategic move for the Group to gain complete exposure of the
fast growing township near the Penang Second Bridge.
"The acquisition will also enable the group to capture a bigger pie of the
expanding profits coming from the Pearl City development," he said.
For the financial year ended Dec 31, 2012, the two subsidiaries -– TIDSB
and PSB -- contributed about 70 per cent or RM39.8 million to the Group’s profit
after tax of RM57.0 million, out of which profit attributable to Nadayu was
RM14.0 million.
On prospects, Teh said the remaining gross development value of RM1.9
billion in Pearl City is expected to contribute to the Group with a profit
before tax in excess of RM600.0 million over the next six to seven years.
"With the future profits from the township to be fully attributed to our
shareholders, we believe the deal upon completion will create great value for
them,” he added.
-- BERNAMA
KTK KTK WGM

 

GEORGE TOWN: Property developer Tambun Indah Land Bhd expects better profits ahead with the proposed acquisitions of a minority equity interest in two subsidiaries undertaking the development of the Pearl City township in mainland Penang.

In a statement today, Tambun Indah Land said it plans to acquire the remaining 30% stake in Tambun Indah Development Sdn Bhd (TIDSB), comprising 300,000 ordinary shares and 8.04 million redeemable preference shares.

It said Tambun Indah Land also hopes to acquire a 40% take in Palmington Sdn Bhd (PSB), consisting of 2.3 million ordinary shares, from Pembangunan Bandar Mutiara Sdn Bhd, a 100% subsidiary of Nadayu Properties Bhd, for a purchase consideration of RM112.2 million.

"The purchase consideration will be satisfied via a combination of RM40.7 million cash payment and an issuance of 55.0 million new Tambun Indah shares at an issue price of RM1.30 per share.

"The cash payment will be funded by internal funds and bank borrowings, as well as partly from the proposed private placement of 15.0 million new shares to identified institutional investors," it said.

It added that the corporate exercises of acquisition and private placement will result in Tambun Indah enlarging its share capital by 70.0 million ordinary shares of RM0.50 par, from the current share capital of 318.6 million shares to 388.6 million shares. It said the proposed acquisitions are expected to be completed in fourth quarter of 2013 and will be subjected to approval from the relevant authorities, as well as shareholders in an Extraordinary General Meeting (EGM) at a later date.

However, Tambun Indah Land Managing Director Teh Kiak Seng said the acquisition is a strategic move for the Group to gain complete exposure of the fast growing township near the Penang Second Bridge.

"The acquisition will also enable the group to capture a bigger pie of the expanding profits coming from the Pearl City development," he said.

For the financial year ended Dec 31, 2012, the two subsidiaries -– TIDSB and PSB -- contributed about 70% or RM39.8 million to the Group’s profit after tax of RM57.0 million, out of which profit attributable to Nadayu was RM14.0 million.

On prospects, Teh said the remaining gross development value of RM1.9 billion in Pearl City is expected to contribute to the Group with a profit before tax in excess of RM600.0 million over the next six to seven years.

"With the future profits from the township to be fully attributed to our shareholders, we believe the deal upon completion will create great value forthem,” he added. - Bernama

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