By Sharen Kaur
sharen@nstp.com.my
Published in NST on September 20 2011
KUALA LUMPUR: Bandar Raya Developments Bhd (BRDB)'s board of directors have accepted an offer from Ambang Sehati Sdn Bhd to acquire some of its assets and liabilities in a deal valued at RM914 million.
Upon completion of the deal, BRDB is also proposing to pay RM390.12 million or 80 sen a share as cash dividend to shareholders, upon receiving the cash from Ambang Sehati.
Early this month, the BRDB board hired CIMB Investment Bank to evaluate the deal.
Ambang Sehati is 26 per cent-controlled by BRDB's chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz. Moiz also has an 18.8 per cent stake in BRDB.
"This was an unsolicited offer. We did receive offers from other parties before but there was nothing serious on the table. After weighing the offer from Ambang Sehati against what is happening in the market, we found it a very interesting deal," said BRDB's chief executive officer Datuk Jagan Sabapathy.
Speaking to newsmen after the close of the stock market yesterday, Jagan said the board's decision took into account the advice and opinion of its main adviser CIMB and independent adviser Public Investment Bank Bhd.
Ambang Sehati is proposing to buy the Bangsar Shopping Centre (BSC) and Menara BRDB, which are parked under BRDB's wholly-owned unit BR Property Holdings Sdn Bhd (BRPH), as well as CapSquare Retail Centre in Kuala Lumpur, and Permas Jusco Mall in Johor.
Ambang Sehati will pay RM430 million cash for the deal and take over the term loan from BRPH amounting to RM450 million and other liabilities of the company in the region of RM34 million.
The disposal consideration of BRPH is based on its unaudited RNAV of RM216 million, taking into account the indicative value of RM700 million for BSC and Menara BRDB and the nett liabilities of the company of RM484 million.
The disposal consideration for CapSquare and Permas Jusco Mall are at RM146 million and RM68 million respectively.
Jagan added that the board had not conducted an open tender exercise to dispose of the assets as it may negatively impact the smooth operations of the retail centres.
On how proceeds from the sale will be utilised, Jagan said apart from the RM390 million special dividend payout, BRDB will use RM302 million to pare down debt and RM168 million as working capital.
"This is to finance projects and look for new opportunities or good deals that come along. We will not buy anymore investment assets except land to expand our property development activities," Jagan said.
The investment assets have an average yield of 6 per cent per annum and contribute less than 5 per cent to BRDB's revenue and net profit.
Upon disposal of the assets, BRDB will focus on property development activities long term.
BRDB currently has residential property developments worth about RM6 billion in recognisable gross development value over the next three to five years.
-ENDS-
sharen@nstp.com.my
Published in NST on September 20 2011
KUALA LUMPUR: Bandar Raya Developments Bhd (BRDB)'s board of directors have accepted an offer from Ambang Sehati Sdn Bhd to acquire some of its assets and liabilities in a deal valued at RM914 million.
Upon completion of the deal, BRDB is also proposing to pay RM390.12 million or 80 sen a share as cash dividend to shareholders, upon receiving the cash from Ambang Sehati.
Early this month, the BRDB board hired CIMB Investment Bank to evaluate the deal.
Ambang Sehati is 26 per cent-controlled by BRDB's chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz. Moiz also has an 18.8 per cent stake in BRDB.
"This was an unsolicited offer. We did receive offers from other parties before but there was nothing serious on the table. After weighing the offer from Ambang Sehati against what is happening in the market, we found it a very interesting deal," said BRDB's chief executive officer Datuk Jagan Sabapathy.
Speaking to newsmen after the close of the stock market yesterday, Jagan said the board's decision took into account the advice and opinion of its main adviser CIMB and independent adviser Public Investment Bank Bhd.
Ambang Sehati is proposing to buy the Bangsar Shopping Centre (BSC) and Menara BRDB, which are parked under BRDB's wholly-owned unit BR Property Holdings Sdn Bhd (BRPH), as well as CapSquare Retail Centre in Kuala Lumpur, and Permas Jusco Mall in Johor.
Ambang Sehati will pay RM430 million cash for the deal and take over the term loan from BRPH amounting to RM450 million and other liabilities of the company in the region of RM34 million.
The disposal consideration of BRPH is based on its unaudited RNAV of RM216 million, taking into account the indicative value of RM700 million for BSC and Menara BRDB and the nett liabilities of the company of RM484 million.
The disposal consideration for CapSquare and Permas Jusco Mall are at RM146 million and RM68 million respectively.
Jagan added that the board had not conducted an open tender exercise to dispose of the assets as it may negatively impact the smooth operations of the retail centres.
On how proceeds from the sale will be utilised, Jagan said apart from the RM390 million special dividend payout, BRDB will use RM302 million to pare down debt and RM168 million as working capital.
"This is to finance projects and look for new opportunities or good deals that come along. We will not buy anymore investment assets except land to expand our property development activities," Jagan said.
The investment assets have an average yield of 6 per cent per annum and contribute less than 5 per cent to BRDB's revenue and net profit.
Upon disposal of the assets, BRDB will focus on property development activities long term.
BRDB currently has residential property developments worth about RM6 billion in recognisable gross development value over the next three to five years.
-ENDS-
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