Iskandar Waterfront City jumps 7.3pc on news of proposed merger

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.