KUALA LUMPUR: Iskandar Waterfront Holdings Sdn Bhd (IWH) has proposed to buy the remaining 61.7 per cent stake in IWC it does not already own.
IWH, controlled by Tan Sri Lim Kang Hoo, will assume IWC’s listing status on Bursa Malaysia’s main board.
Under its proposed one-for-one merger offer, IWH will buy the remaining 61.7 per cent IWC stake at RM1.50 a share.
The proposed merger will create one of Bursa Malaysia’s largest property developers with RM30 billion worth of land, IWH said today.
The RM1.50 offer price represents a 14 per cent premium over IWC’s 30-day volume weighted average price up to March 3.
IWH said the IWC board has 30 days until April 19 to deliberate on the merger.
“Upon completion of the proposed merger, IWH will assume the listing status of IWC on the Main Board of Bursa Malaysia, which will see the establishment of one of the largest listed strategic master property developers,” IWH added.
In tandem with the proposed merger, IWH will undertake a restructuring with its executive vice chairman Tan Sri Lim Kang Hoo via internal rationalisation of minority stakes within the IWH Group and various Johor state entities.
This includes Kumpulan Prasarana Rakyat Johor Sdn Bhd, the investment arm of the Johor state government, to consolidate land bank under IWH.
The restructuring will see an injection of 3,593 acres of land with an open market value of RM4.1 billion into IWH.