Sunway buys out KFH stake in South Quay project
Group to pay RM136.65mil for 20% shareholding
PETALING JAYA: Sunway Bhd has agreed to buy out Kuwait Finance House (M) Bhd’s (KFH) minority stake in its South Quay project after 11 years of collaboration.
In a filing with Bursa Malaysia, Sunway said it is acquiring KFH’s entire 20% stake in Sunway South Quay Sdn Bhd (SSQ) for RM136.65mil.
It will also repay a sum RM73.35mil cash towards the settlement of the Musyarakah Capital invested by KFH in SSQ.
“The proposed acquisition will increase Sunway’s stake in SSQ from 60% to 80%,” the company said in a statement.
“As a result, Sunway will have a higher ownership of Sunway South Quay, which is expected to contribute positively to the group’s current and future earnings,” it added.
Sunway said the purchase consideration for the additional stake in SSQ would be funded through bank borrowings and internally generated funds.
“Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the last quarter of this year,” it said.
SSQ is primarily involved in the development of Sunway South Quay, a mixed project located in the integrated township of Sunway City.
The Employees Provident Fund (EPF) owns the remainder 20% stake in SSQ.
In 2006, the EPF and KFH each invested about RM69.6mil in SSQ for the develop- ment of the 123-acre Sunway South Quay project.
Comprising luxury lakeside bungalows, high-end condominiums, serviced apartments, lakeside boutique shops and office suites, the project was completed in 2012.
Sunway said the proposed acquisition of the 20% stake in SSQ from KFH reflected the group’s commitment to the long-term prospects and success of Sunway South Quay.
Sunway noted that the proposed acquisition would not have any effect on the share capital and substantial shareholders’ shareholding of the group, as the exercise did not involve any allotment or issuance of new shares.
In addition, it said the proposed acquisition was not expected to have any immediate material effect on the group’s earnings per share, net assets per share and gearing for the financial year ending Dec 31, 2017.
“However, it is expected to contribute positively to the future earnings of the Sunway group,” it said.