Saturday 12 November 2011

Pavilion REIT eyes RM710m IPO

KUALA LUMPUR Pavilion Real Estate Investment Trust (REIT) aims to raise up to RM710 million in an initial public offering (IPO), which would be the fourth largest listing in the country this year.

The company will offer 790 million shares at an indicative price of 88-90 sen per share, according to the IPO term sheet obtained by Reuters.

Last month, Reuters reported that the IPO would raise about RM700 million, making it the fourth largest in Malaysia this year after Bumi Armada Bhd, MSM Malaysia Holdings Bhd and UOA Development Bhd.

The proceeds would be used for working capital and for partial payment of acquisitions, according to the information sheet. CIMB, Credit Suisse and Maybank are the joint global bookrunners for the deal.

The Employees Provident Fund and Kumpulan Wang Persaraan and insurance companies Great Eastern Life and American International Assurance Bhd are among those roped in as cornerstone investors for the IPO.

Dijaya, Ivory in RM10b Penang property venture

KUALA LUMPUR (Nov 11): DIJAYA CORPORATION BHD [] and Ivory PROPERTIES [] Group Bhd have signed a joint venture (JV) agreement to develop mixed residential and commercial properties in Penang with a gross development value (GDV) of RM10 billion.

In a joint statement on Friday, the two companies said the development will be completed over the next eight years and would comprise of residential, shopping mall, hotel, office suites, office towers, retail spaces and an open mall with a boulevard.

CONSTRUCTION [] of the first phase is scheduled to begin next year, they said.

The signing confirmed an earlier report on Friday by The Edge Financial Daily after Dijaya Corporation and Ivory Properties had both asked for a one-day suspension in trading for their shares pending a material announcement.

Dijaya and Ivory said the land was located within Bayan Mutiara, a new development hub located in the eastern part of the Tun Dr Lim Chong Eu Expressway (formerly known as Bayan Lepas Expressway) and in the vicinity of Sungai Nibong.

It spans 102.65 acres, of which 76.56 acres are existing land and the remaining 35 acres are to be reclaimed, they said.

Dijaya group chief executive officer Tan Sri Danny Tan said the signing was another milestone for Dijaya's investment outside of Klang Valley in addition to the Southern region.

“Our investment in Penang is an affirmation of the company's confidence in the growth potential of this region and, with Ivory as our business partner, we hope to further contribute to the economic growth in Penang,” he said.

Meanwhile, Ivory chief executive officer and chairman Datuk Low Eng Hock said Dijaya was famous for its series of lifestyle homes within a resort environment as seen in the award-winning development, Tropicana Golf & Country Resort.

“With the property company beefing up its financial muscles and market presence, this potential joint venture will add vibrancy and spur the economic growth of Penang,” he said.

Ivory had received a letter of acceptance from the Penang Development Corporation (PDC) on July 25, to purchase and develop 102.56 acres of mixed development land in Bayan Mutiara, Penang for a purchase price of RM1.07 billion.

Under the joint venture, the two public listed companies have formed Tropicana Ivory Sdn Bhd, with Ivory Properties holding a 51% stake and Dijaya holding the remaining 49%.

Dutaland: deal rescinded to avoid prolonged legal tussle

KUALA LUMPUR (Nov 11): DUTALAND BHD [] and IOI CORPORATION BHD [], which mutually rescinded the sale and purchase agreement over the disputed RM830 million oil palm PLANTATION [] deal, had done so with a view not to prolong the legal dispute arising from the termination of the deal.

In a reply to a query from Bursa Malaysia Securities Bhd on Friday, Nov 11, Dutaland said the Deed of Rescission entered by the parties on Nov 9 would avoid protracted litigation, the outcome of which can be uncertain and this may have adverse implications on the company.

“Moreover a prolonged litigation would hinder any potential sales of the PROPERTIES [] in future,” it said.

Dutaland said that by entering into the Deed of Rescission, Sri Mayvin had retracted all its allegations and assertions made against Pertama Land.

It said Pertama Land had consistently maintained that Pertama Land has complied with and is not in breach of the SPA as alleged or at all by Sri Mayvin.

“In the absence of the sale proceeds from the Proposed Disposal, the Group may obtain bank borrowings and/or internally generated funds to fund/support the items stated in the intended utilisation of sale proceeds (i.e. purchase of Irredeemable Convertible Bonds, settlement of debts, funding of Kenny Heights project, etc),” said Dutaland.

To recap, IOI Corp and Dutaland on Nov 9 said they had agreed to mutually rescind the sale and purchase agreement over the disputed RM830 million oil palm plantation deal.

IOI Corp said on Wednesday that its unit Sri Mayvin Plantation Sdn Bhd and Dutaland’s Pertama Land & Development Sdn Bhd had entered into a deed of rescission in a move to resolve all issues and disputes relating to the SPA that involved 11,977.91 ha (29,597.42 acres).

“With immediate effect whereupon the parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other in respect thereto,” it said.

IOI Corp said following from the execution of the deed of rescission, OSK Trustees Bhd, being the stakeholder jointly appointed by the parties, will proceed to refund the deposit earlier paid by Sri Mayvin pursuant to the terms of the SPA together with all interest accrued thereon to Sri Mayvin.

On Oct 25, IOI Corp terminated its proposed acquisition of the land from Dutaland, citing the cancellation was “due to non-compliance of certain terms and conditions”.

However, Dutaland had then said it did not accept the reasons for termination of the sales and purchase agreement and directed the stakeholder, OSK Trustees Bhd not to remit the deposit of RM83 million, which was the 10% deposit paid.

In a separate statement on Nov 9, Dutaland said that with the rescission, Sri Mayvin has retracted all its allegations and assertions made against Pertama Land as contained in Sri Mayvin’s letters dated Oct 4, 20 and the 21.

"Pursuant to the deed, Sri Mayvin has further confirmed that it has not lodged and will not lodge any private caveat(s) or any encumbrances(s) over the properties," it said.

Dutaland also said its board having sought legal advice and after taking into consideration all relevant aspects of the termination of the SPA, was of the view that protracted litigation would hinder any future sales of the properties.

"Furthermore, the outcome of litigation can be uncertain and this may have adverse implications on the group. In the meantime, the group shall continue to manage the properties to generate positive returns," it added.

Kimlun gets RM68m contract in Iskandar Malaysia

KUALA LUMPUR (Nov 11): Kimlun Corporation Bhd has secured a contract worth RM68 million to build a service apartment in Iskandar Malaysia in Johor.

In a filing Friday, Nov 11, Kimlun said its wholly-owned subsidiary Kimlun Sdn Bhd had accepted the letter of award for the contract from Grand Action Sdn Bhd.

Kimlun said the CONSTRUCTION [] work was expected to be completed by January 2014.

The company said the project was expected to contribute positively to its earnings for the current financial year ending Dec 31, 2011 and the subsequent financial years during the contract period.
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