KUALA LUMPUR: Seasoned property developer Datuk Thong Kok Khee plans to boost his stake in SYF Resources Bhd as part of a wider plan to shore up his property and construction portfolio.
Business Times was told that Thong had briefed Datuk Ng Ah Chai, the owner of SYF, on the matter.
Thong currently owns 10 per cent of SYF, while Ng has a 60.7 per cent stake. Around 12 per cent is held by Datuk Chee Hong Leong. Under the plan, Ng will pare down his stake by selling some shares to Thong.
It is understood that M&A Securities Sdn Bhd, which is owned by Thong’s Insas Bhd, will help in placing out some shares to institutional funds.
Filings to Bursa Malaysia show that some nine million SYF shares were placed out to institutions yesterday, at RM1.16 a share, via an off market deal.
“What Thong is proposing is a way for SYF to comply with shareholding spread required by the regulator and a clear role for the company in the Malaysian property landscape,” said a banker at M&A Securities.
M&A Securities is advising Thong on the structure of the deal and it involves buying a chunk of Ng’s stake and some from the open market, and 10 per cent new share placement.
After the deal is finalised, SYF will be the choice construction arm for Insas, which has a huge landbank.
SYF is expected to also be a construction partner for Inch Kenneth Kajang Rubber Public Ltd Co, in which, Ng is the second largest stakeholder, the banker said.
“The people at SYF are value creators. They are the same people who successfully sold SEG International to a private equity. So it is quite likely that in the next 10 months, they will sell SYF for double the price to a larger construction group,” he said.