YTL Land to acquire property development assets from YTL Corp for RM476m

KUALA LUMPUR: In a move to rationalise YTL Corporation Bhd's property development assets and projects, YTL Land & Development Bhd is acquiring nine companies and six parcels of land from holding company YTL Corp and YTL Singapore Pte Ltd for a total consideration of RM476.05 million and settle their collective inter-company outstanding balances, it announced to Bursa Malaysia on Tuesday, Nov 23.

YTL Land had entered into separate conditional share sale agreements (SSA) with YTL Corp and YTL Singapore to acquire the companies and the parcels of land in Bidor today.

The companies involved in the transaction are as follows: a 100% stake in Arah Asas Sdn Bhd (AASB), a 100% stake in Satria Sewira Sdn Bhd (SSSB), a 70% stake in Emerald Hectares Sdn Bhd (EHSB), a 100% stake in Pinnacle Trend Sdn Bhd (PTSB), a 100% stake in Trend Acres Sdn Bhd (TASB), a 100% stake in YTL Westwood Properties Pte Ltd (YTLW), a 70% stake in Lakefront Pte Ltd (LFPL), a 70% interest in Sandy Island Pte Ltd (SIPL), a 100% stake in Budaya Bersatu Sdn Bhd (BBSB) and six parcels of land in Bidor.

The consideration will be satisfied with the issuance of RM253.03 million worth of 10-year 3% stepping up to 6% ireedeemable convertible unsecured loan stocks (ICULS) at 100% of nominal value of 50 sen per ICULS and the remaining RM223.02 million will be satisfied in cash.

YTL Land has also proposed to render financial assistance to three of the companies to be acquired, namely Emerald Hectares Sdn Bhd (EHSB), Lakefront Pte Ltd (LFPL) and Sandy Island Pte Ltd (SIPL) to settle the outstanding sum of RM67.16 million.

In addition, YTL Land has also proposed to provide a corporate guarantee of up to SG$28.62 million (RM68.90 million) for LFPL's term loan facility and up to SG$92.72 million in respect of SIPL's term loan facility, being the amounts outstanding as at Nov 15.

YTL Land has also proposed a share premium reduction of up to RM130 million to reduce its accumulated losses, and the balance will be used to offset the proposed acquisitions, provision of financial assistance, ICULS rights issue and proposed share premium reduction.

"The proposed rationalisation exercise of the YTL Corp group's property development assets under the company, has presented a unique opportunity for the company to acquire property development projects and additional landbank in choice and strategic locations in Malaysia and Singapore," it said.

The exercise is expected to be completed in the first half of 2011.
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