Wednesday, 5 July 2017

(The Star) IGB to present revised takeover bid to shareholders

PETALING JAYA: IGB Corp Bhd will present the revised terms of its takeover offer by Goldis Bhd to its shareholders for deliberation, before making a decision to take it private.

In a filing with Bursa Malaysia yesterday, IGB Corp, which is the owner of Mid Valley Megamall, said that the proposal by its biggest shareholder, Goldis, will be based on the preliminary opinion of independent adviser Kenanga Investment Bank Bhd.

IGB said its scheme shareholders are advised not to take any action until the receipt of the independent advice letter, together with the explanatory statement for the proposed scheme.

Originally, Goldis had offered three options available to IGB shareholders – a cash only or a cash plus Goldis shares on a 30:70 ratio. The third option was a cash plus new redeemable convertible cumulative preference shares (RCCPS) on a 20:80 ratio. Shareholders owning fewer than 100 IGB shares would be offered cash only.

However, Goldis later said it wanted to allow all scheme shareholders to have the same election rights.

This meant that those with fewer than 100 IGB shares could elect for either the cash option, the cash and share option, or the revised cash and new RCCPS option.

The proportion of cash to new RCCPS to be offered under the cash and new RCCPS option has been revised from 20% in cash and 80% new RCCPS to 12% in cash and 88% new RCCPS.

Goldis said this was to cater to scheme shareholders who wished to maximise their equity holdings in Goldis, with the aim of benefitting from and being able to realise the long-term potential value in the consolidated group.

Goldis said the revised option would not have any material effect on the group structure, share capital, substantial shareholders’ shareholding and audited consolidated net assets per share and gearing.

Goldis, which owns 73.43% of IGB, had proposed to privatise IGB Corp for an offer price of RM3 for each IGB share not yet owned by itself and Goldis’ persons acting in concert.

It is envisaged that the full consolidation of the businesses of IGB and Goldis will create a more cohesive and efficient operating structure, going forward.

Goldis is a property investment company that is controlled by the Tan family, led by Datuk Tan Chin Nam. The crown jewel of the group is located at Goldis’ subsidiaries, IGB Corp Bhd and IGB Reit, while the family’s interest is mainly concentrated at Goldis.

IGB has prized assets such as Mid Valley City, which comprises 2.7 million sq ft of retail mall space, 3.2 million sq ft of prime office space in Kuala Lumpur and over 5,500 hotel rooms across the globe, according to a note by AllianceDBS Research.

IGB also owns a 52.3% stake in IGB Reit, which, in turn, owns Mid Valley Megamall and The Gardens Mall. IGB’s balance sheet received an additional boost with the sale of the Renaissance Kuala Lumpur Hotel earlier this year for RM765mil.