Tuesday, 14 February 2012

IWH increases purchases from KPRJ

KUALA LUMPUR: Iskandar Waterfront Holdings Sdn Bhd (IWH) has increased its share purchases from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ), buying KPRJ’s stake in PLS Plantations Bhd, and confirming its purchase in Tebrau Teguh Sdn Bhd.

In two separate announcements to Bursa Malaysia yesterday, Tebrau confirmed IWH’s purchase of a 33.15% stake in the company while PLS said IWH acquired a 23.4% stake in PLS from KPRJ yesterday, bringing IWH’s purchases from KPRJ to a total of RM261.29 million.

KPRJ is a major shareholder of PLS. The company told Bursa yesterday that it received notification that KPRJ had entered into a share sale agreement with IWH, whereby the latter will acquire 76.5 million 20 sen shares in PLS for RM1.21 per share, representing a five sen premium to the five-day weighted average share price.

In its Jan 31 announcement, Tebrau said its major shareholder KPRJ had entered into a definitive agreement with IWH to sell its 33.15% Tebrau stake, which consisted of 222 million 50 sen shares, for 76 sen cash apiece. Before the sale was announced, KPRJ held 41.15% in Tebrau.

In addition, the announcement said the proposed acquisition will trigger a mandatory takeover offer by IWH and the parties acting in concert with it for all the remaining shares in Tebrau not owned by the former for 76 sen cash per share.

The news comes just a day after Prime Minister Datuk Seri Najib Razak announced a RM200 facilitation fund to kickstart the Iskandar Integrated Waterfront City Project in Danga Bay. The project will reportedly cover a total of 25km on the east and west of the Johor Causeway facing Singapore, with a reported gross development value of RM80 billion.

IWH is a special purpose vehicle established to develop the Iskandar project. IWH’s shareholders are KPRJ and Credence Resources Sdn Bhd, whose major shareholder is Ekovest Bhd executive chairman Datuk Lim Kang Hoo.

Tebrau has been in the news since it announced on Jan 31 that it had accepted IWH’s offer for the 33.15% stake. The developments have sent Tebrau’s stock price soaring. It closed up 2.5 sen or 2.8% to 91.5 sen yesterday, its highest close in 13 months.

PLS is an investment holdings company that is involved in plantation and construction activities. It finished at RM1.15 yesterday, unchanged since Feb 9. Its close on Feb 8 was RM1.19.

This article appeared in The Edge Financial Daily, February 14, 2012.

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