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
TOP PICKS BY EDGEPROP
NEW Semi-D Cluster @ Villa Heights Kajang
[ READY TENANT+ COVER INSTALLMENT ] Hotel Suites
(CMCO Offer) 5R6B Villa Style Super Link, Puchong
2 Storey Seksyen 8 Bandar Baru Bangi
[ Europe Style Duplex Condo ] ROI 9% Cash Back
Student Rental RM1800 Cover Instalment! Freehold
NEW Townhouse @ Putra Perdana Puchong
Rumah Berkembar 2 Tingkat di Kuala Kedah
Kuala Kedah, Kedah
[ READY TENANT INVEST] New Township Between Cyberj
Corner Lot for Sale @ Tmn Mawar Salak Tinggi
NEW 1-Storey Semi-D @ Changgang Jaya
Freehold Semi-D, Taman Lesung Batu Jaya
Alor Gajah, Melaka
Semi D 2½ Corner Lot Jalan Kebun Seksyen 30
Shah Alam, Selangor
Rumah Berkembar Setingkat di Kuala Kedah
Kuala Kedah, Kedah
[ Confirm Rental Get RM 3000 ] Students Condo
LUXURY CONDO WITH INFINITY POOL,1st HOME BUYER