By Sharen Kaur
Published in NST on September 28, 2011
KUALA LUMPUR: Bandar Raya Deve-lopments Bhd (BRDB) has received three offers from institutional investors for its key assets after its major shareholder had offered to buy them, company officials said.
BRDB will call for a tender by the end of this year or early next year, they said, adding that it will hire a consultant by the next board meeting.
"We can't disclose who the interested parties are as these are confidential matters. They are parties who invest in assets and securities," one of the officials said yesterday.
BRDB on Monday announced that it had decided to scrap a deal to sell four key assets and related liabilities to a major shareholder, Ambang Sehati Sdn Bhd, for RM914 million, and call for a tender instead.
"Expression of interest came after BRDB said it would accept the deal. After serious consideration, BRDB and Ambang Sehati decided to mutually terminate talks for the tender to take place," the official explained.
The official added that the investors, not related to BRDB, had expressed interest to buy the assets to its board members, including chief executive officer Datuk Jagan Sabapathy, about a week ago.
"Based on our directors' assessment of the interested parties, they decided it is worthwhile to engage in discussion with them and see what they offer," he told Business Times.
BRDB received the offer from Ambang Sehati on September 5 to buy Bangsar Shopping Centre (BSC), Menara BRDB, CapSquare Retail Centre in Kuala Lumpur and Permas Jusco Mall in Johor.
BSC and Menara BRDB are parked under BRDB's wholly-owned unit BR Property Holdings Sdn Bhd (BRPH).
Ambang Sehati is 26 per cent controlled by BRDB chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz. He also has an 18.8 per cent stake in BRDB.
Two weeks later, BRDB told Bursa Malaysia that it had accepted the offer after taking into account the advice and opinion of its main adviser CIMB and independent adviser Public Investment Bank Bhd.
But there were concerns raised by various parties including analysts, the media and the Minority Shareholder Watchdog Group.
"They said there is no transparency in this deal as it is a related-party transaction. They also raised concerns that BRDB was accepting the deal at lower than the market value and it was not doing the right thing with how the money would be spent," the official said.
"The board did speak to several independent property consultants who said it was a fair deal looking at the 6 per cent yield. The board decided the best thing to do now is call for a tender," the official added.
At a media briefing last week to announce the deal, Jagan told reporters that BRDB did not receive any serious offers on the table, hence decided to take the offer made by Ambang Sehati.
Jagan also said that BRDB did not call for a tender as it would jeopardise the deal with Ambang Sehati.
Published in NST on September 28, 2011
KUALA LUMPUR: Bandar Raya Deve-lopments Bhd (BRDB) has received three offers from institutional investors for its key assets after its major shareholder had offered to buy them, company officials said.
BRDB will call for a tender by the end of this year or early next year, they said, adding that it will hire a consultant by the next board meeting.
"We can't disclose who the interested parties are as these are confidential matters. They are parties who invest in assets and securities," one of the officials said yesterday.
BRDB on Monday announced that it had decided to scrap a deal to sell four key assets and related liabilities to a major shareholder, Ambang Sehati Sdn Bhd, for RM914 million, and call for a tender instead.
"Expression of interest came after BRDB said it would accept the deal. After serious consideration, BRDB and Ambang Sehati decided to mutually terminate talks for the tender to take place," the official explained.
The official added that the investors, not related to BRDB, had expressed interest to buy the assets to its board members, including chief executive officer Datuk Jagan Sabapathy, about a week ago.
"Based on our directors' assessment of the interested parties, they decided it is worthwhile to engage in discussion with them and see what they offer," he told Business Times.
BRDB received the offer from Ambang Sehati on September 5 to buy Bangsar Shopping Centre (BSC), Menara BRDB, CapSquare Retail Centre in Kuala Lumpur and Permas Jusco Mall in Johor.
BSC and Menara BRDB are parked under BRDB's wholly-owned unit BR Property Holdings Sdn Bhd (BRPH).
Ambang Sehati is 26 per cent controlled by BRDB chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz. He also has an 18.8 per cent stake in BRDB.
Two weeks later, BRDB told Bursa Malaysia that it had accepted the offer after taking into account the advice and opinion of its main adviser CIMB and independent adviser Public Investment Bank Bhd.
But there were concerns raised by various parties including analysts, the media and the Minority Shareholder Watchdog Group.
"They said there is no transparency in this deal as it is a related-party transaction. They also raised concerns that BRDB was accepting the deal at lower than the market value and it was not doing the right thing with how the money would be spent," the official said.
"The board did speak to several independent property consultants who said it was a fair deal looking at the 6 per cent yield. The board decided the best thing to do now is call for a tender," the official added.
At a media briefing last week to announce the deal, Jagan told reporters that BRDB did not receive any serious offers on the table, hence decided to take the offer made by Ambang Sehati.
Jagan also said that BRDB did not call for a tender as it would jeopardise the deal with Ambang Sehati.
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