IWH director and executive vice chairman Tan Sri Lim Kang Hoo
KUALA LUMPUR: Iskandar Waterfront Holdings Sdn Bhd's (IWH) proposed corporate exercise with Iskandar Waterfront City Bhd
(IWC) will include the former's stake in Bandar Malaysia.
IWH director and executive vice chairman Tan Sri Lim Kang Hoo had on Thursday stated that IWH has a joint venture IWH-CREC Sdn Bhd which owns a 60% stake in Bandar Malaysia.
The remaining 40% stake is held by the Ministry of Finance Incorporated.
“IWH would like to clearly state that this prime piece of city land is included in this corporate exercise.
“With the proposed listing of the IWH Group, this will provide investors with the opportunity to invest in the strategic land bank located in this prime area in the heart of Kuala Lumpur,” said Lim.
In a corporate proposal announced on Wednesday, IWH will take over the listing status of IWC through a share swap between the two.
The ratio is on the basis of one IWC share to be exchanged for one share in an enlarged IWH. The new-look IWH (Newco) will also own up to 7,400 acres of land fronting the sea between Johor Baru and Singapore.
IWH at the moment is 63%-owned by Lim Kang Hoo through his private company Credence Resources Sdn Bhd, while the remaining shares are held by Kumpulan Prasarana Rakyat Johor (KPRJ).
IWH holds a 38.34% stake in IWC that has 1,072 acres mainly located in Tebrau, Johor.
IWH, on the other hand, has 3,900 acres of waterfront land, of which 80% has been claimed.
The corporate exercise proposes that all land outside IWH that is owned by Lim and KPRJ be consolidated in exchange for new shares in the NewCo and redeemable convertible preference shares (RCPS).
The amount of land to be injected into the NewCo is 3,593 acres. Of the amount, Lim’s portion is 452 acres valued at RM2.6bil.
As for KPRJ, its total land that can be injected into the Newco is 3,141 acres valued at RM1.5bil.
According to a statement issued by the group, three independent valuers undertook the valuation of the land.
Apart from Lim and KPRJ, IWH will also make an offer to the Sultan of Johor to inject his land in Johor Baru into IWH.
The Ministry of Finance Inc will also be given an offer to consolidate its 28% stake in Iskandar Waterfront Sdn Bhd, the company that holds the waterfront land under IWH, at the Newco level.
If all the parties agree to the consolidation of their assets and shares at the IWH level, then the new-look IWH will have up to 7,400 acres of land.
Upon the conclusion of the merger and restructuring, the expanded share capital of IWH is expected to be up to 4.3 billion shares, and if based on the offer price of IWC at RM1.50, the market capitalisation of the NewCo would be RM6.45bil.
The reference price for the exercise is set at IWC’s share price of RM1.50. The offer price for the share swap is a 14% premium over the 30-day volume-weighted average price of IWC shares.
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