By Sharen Kaur
sharen@nstp.com.my
Published in NST on February 9, 2013
sharen@nstp.com.my
Published in NST on February 9, 2013
RM11B PROJECT: Property group signs RM729m deals with Gapurna
MALAYSIAN Resources Corp Bhd (MRCB) will have a share in the RM11 billion PJ Sentral Garden City project, with Gapurna Sdn Bhd emerging as its new shareholder.
PJ Sentral, located in Section 52 of Petaling Jaya, is a 70:30 joint venture between Nusa Gapurna Development Sdn Bhd (NGD) and the Selangor Economic Development Corp (PKNS). The project will begin this year.
NGD is a subsidiary of Gapurna, controlled by businessman Datuk Mohamad Salim Fateh Din.
MRCB is the builder for KL Sentral, an integrated transport hub in Brickfields. KL Sentral, slated to finish in 2016, is the only current project for MRCB.
MRCB yesterday announced that it has teamed up with Gapurna in a RM729 million corporate exercise which will see the private developer injecting land worth RM459 million into the property and construction group, in return for shares.
The 13.2ha land is located in the Klang Valley and includes the PJ Sentral development.
Trading in MRCB shares was suspended in the afternoon session for the announcement.
In a statement, MRCB said it signed several agreements with companies related to Gapurna for total purchase consideration of RM729 million.
These include RM111 million cash payment and issuance of 398.71 million MRCB shares with attached 113.97 million free warrants on the basis of two new MRCB warrants for every seven new MRCB shares held.
The new MRCB shares are priced at RM1.55 per share, which is a 25 per cent premium over the stock's last closing price of RM1.24 on Thursday. MRCB shares have fallen by some 45 per cent from RM2.27 since February 8 2012 as it lacked new developments.
MRCB chief financial officer Chong Chin Ann said the acquisition will boost the group's landbank with the key development being PJ Sentral, and the potential to replicate the KL Sentral development.
Besides the land deal, MRCB inked agreements with NGD to acquire several companies related to Gapurna such as Gelanggang Harapan Construction Sdn Bhd (GHC) for RM250 million and Gapurna Global Solution Sdn Bhd (GGS) for RM20 million.
MRCB also entered into a first rights of refusal-cum-call option agreement with NGD to acquire all the remaining land and any future development land secured by NGD over three years as well as a RM50 million profits guarantee pact with Gapurna for GHC.
The entire exercise is expected to be completed in the next quarter, subject to approval from shareholders of MRCB at an extraordinary meeting.
Post the proposed acquisitions, Gapurna will have direct and indirect interest of 16.8 per cent of the enlarged MRCB, while the Employees Provident Fund's (EPF) interest will be 38.4 per cent. EPF now has a 42.2 per cent interest in MRCB and 40 per cent in NGD.
Salim will also be appointed as the managing director of MRCB.
Gapurna, the EPF and parties acting in concert for the proposed acquisition will seek an exemption from the Securities Commission from undertaking a mandatory takeover offer for the remaining MRCB shares not owned by them upon completion of the deal
.
PJ Sentral, located in Section 52 of Petaling Jaya, is a 70:30 joint venture between Nusa Gapurna Development Sdn Bhd (NGD) and the Selangor Economic Development Corp (PKNS). The project will begin this year.
NGD is a subsidiary of Gapurna, controlled by businessman Datuk Mohamad Salim Fateh Din.
MRCB is the builder for KL Sentral, an integrated transport hub in Brickfields. KL Sentral, slated to finish in 2016, is the only current project for MRCB.
 |
The 13.2ha land is located in the Klang Valley and includes the PJ Sentral development.
Trading in MRCB shares was suspended in the afternoon session for the announcement.
In a statement, MRCB said it signed several agreements with companies related to Gapurna for total purchase consideration of RM729 million.
These include RM111 million cash payment and issuance of 398.71 million MRCB shares with attached 113.97 million free warrants on the basis of two new MRCB warrants for every seven new MRCB shares held.
The new MRCB shares are priced at RM1.55 per share, which is a 25 per cent premium over the stock's last closing price of RM1.24 on Thursday. MRCB shares have fallen by some 45 per cent from RM2.27 since February 8 2012 as it lacked new developments.
MRCB chief financial officer Chong Chin Ann said the acquisition will boost the group's landbank with the key development being PJ Sentral, and the potential to replicate the KL Sentral development.
Besides the land deal, MRCB inked agreements with NGD to acquire several companies related to Gapurna such as Gelanggang Harapan Construction Sdn Bhd (GHC) for RM250 million and Gapurna Global Solution Sdn Bhd (GGS) for RM20 million.
MRCB also entered into a first rights of refusal-cum-call option agreement with NGD to acquire all the remaining land and any future development land secured by NGD over three years as well as a RM50 million profits guarantee pact with Gapurna for GHC.
The entire exercise is expected to be completed in the next quarter, subject to approval from shareholders of MRCB at an extraordinary meeting.
Post the proposed acquisitions, Gapurna will have direct and indirect interest of 16.8 per cent of the enlarged MRCB, while the Employees Provident Fund's (EPF) interest will be 38.4 per cent. EPF now has a 42.2 per cent interest in MRCB and 40 per cent in NGD.
Salim will also be appointed as the managing director of MRCB.
Gapurna, the EPF and parties acting in concert for the proposed acquisition will seek an exemption from the Securities Commission from undertaking a mandatory takeover offer for the remaining MRCB shares not owned by them upon completion of the deal
.
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