Friday, 5 May 2017

(NST) IWH to merge with IWC

KUALA LUMPUR: Iskandar Waterfront Holdings Sdn Bhd (IWH) is moving forward with the process of merging with its listed associate Iskandar Waterfront City Bhd (IWC) today despite hiccups in an aborted deal to acquire a controlling 60 per cent stake in Bandar Malaysia Sdn Bhd.

IWH announced the acceptance by the board of IWC to table the merger scheme to IWC’s shareholders.

In a statement today, IWH said the merger scheme forms part of a proposed rationalisation and restructuring exercise by the group to consolidate its land bank and reap economies of scale.

Under the merger scheme, IWH will acquire the remaining 61.7 per cent stake in IWC at an offer price of RM1.50 per IWC share. This is to be satisfied via issuance of IWH’s shares on a 1-for-1 basis.

After the merger, IWH will assume the listing status of IWC.

Within 60 days of the merger, IWH will inject 3,598 acres of landbank valued at RM4.3 billion into IWH through definitive agreements with the respective vendors, namely IWH executive vice-chairman Tan Sri Lim Kang Hoo, Kumpulan Prasarana Rakyat Johor Sdn Bhd and other Johor state entities.

"Following the completion of the corporate exercise, IWH will have 6,773 acres in Johor Baru valued at RM30 billion. This merger will give opportunity for IWC’s shareholders to participate in an enlarged listed entity," said IWH.

Separately, IWC has signed a supplementary agreement with Greenland Tebrau Sdn Bhd to sell three parcels of land measuring 127.92 acres in Johor for RM2.37 billion.

Barring any unforeseen circumstances, this proposed land sale is expected to complete by the second quarter of 2020.