Iskan­dar Water­front City jumps 7.3pc on news of pro­posed merger

New Straits Times - - Business - Hisyam Rasid Amir

Iskan­dar Water­front City Bhd’s (IWC) share price hit an all-time high as in­vestors re­sponded warmly to the merger plan with its ma­jor share­holder, Iskan­dar Water­front Hold­ings Sdn Bhd (IWH).

The stock jumped 7.32 per cent to close at RM1.76 yes­ter­day from last Fri­day’s close of RM1.64.

IWC had re­quested for a three­day sus­pen­sion from Mon­day be­fore an­nounc­ing the merger plan on Wed­nes­day.

Last Fri­day, it jumped 19.71 per cent from Thurs­day’s close of RM1.37, trig­ger­ing a query from Bursa Malaysia.

IWC was one of the most ac­tively traded stocks yes­ter­day, with 85.57 mil­lion shares chang­ing hands.

Jupiter Re­search di­rec­tor Nazarry Rosli told NST Busi­ness he ex­pected the stock to ex­tend its ris­ing trend in the days ahead to test the re­sis­tance level of RM1.80.

“How­ever, if it can­not break the level, the share price will go down on profit-tak­ing ac­tiv­i­ties.”

Mean­while, IWH ex­ec­u­tive vice-chair­man Tan Sri Lim Kang Hoo clar­i­fied that Ban­dar Malaysia was in­cluded in the merger ex­er­cise.

“With the pro­posed list­ing of IWH, this will pro­vide in­vestors the op­por­tu­nity to in­vest in the strate­gic land­bank in this prime area in the heart of Kuala Lumpur,” he said in a state­ment.

IWH’s joint-ven­ture com­pany, IWH-CREC Sdn Bhd, holds a 60 per cent stake in Ban­dar Malaysia, with the bal­ance held by the Fi­nance Min­istry.

IWH’s of­fer to merge with IWC will cre­ate one of Bursa Malaysia’s largest prop­erty de­vel­op­ers with RM30 bil­lion worth of land. Un­der a pro­posed one­for-one merger of­fer, IWH will buy the re­main­ing 61.7 per cent stake in IWC at RM1.50 a share, valu­ing the lat­ter at RM1.24 bil­lion based on the num­ber of out­stand­ing shares.

IWH will also re­sume IWC’s list­ing sta­tus. The pro­posal puts an end to the orig­i­nal plan to list IWH sep­a­rately.

The RM1.50 of­fer price rep­re­sents a 14 per cent pre­mium over IWC’s 30-day vol­ume weighted av­er­age price up to March 3.

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