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Friday, 30 June 2017

(The Edge Financial Daily) S P Setia signs conditional agreement to take over I&P Group

S P Setia Bhd has signed a conditional share purchase agreement to acquire I&P Group Sdn Bhd from its controlling shareholder Permodalan Nasional Bhd (PNB) for RM3.65 billion cash.

S P Setia is proposing a cash call plus private placement to raise the required funding.

“This synergistic acquisition will further strengthen Setia’s brand presence in Malaysia and help pave the way for the creation of greater shareholder value for S P Setia. I&P’s landbank is located in the Klang Valley and Johor Bahru, and mostly in areas where S P Setia had established a stronghold with its Setia brand,” said Datuk Khor Chap Jen, president and chief executive officer of S P Setia, in a statement.

PNB is the largest shareholder of S P Setia, holding approximately a 62.3% stake, including shares held by its equity trust funds, like Amanah Saham Bumiputera (26.27%) and Amanah Saham Malaysia (3.53%).

I&P Group has 4,276 acres (1,730ha) of landbank, which when combined with the landbank of S P Setia would total 9,417 acres, making S P Setia the third-largest property developer in Malaysia by such a measure.