Bin­tai Kin­den to buy prop­erty man­age­ment firm

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Bin­tai Kin­den Corp Bhd is propos­ing to buy Op­ti­mal Prop­erty Man­age­ment Sdn Bhd (OPM) for RM15 mil­lion and di­ver­sify into the con­ces­sion ar­range­ments busi­ness in an all-share deal.

In a fil­ing with Bursa Malaysia yes­ter­day, the com­pany said it en­tered into a con­di­tional share sale agree­ment with Nu­sankota De­vel­op­ment Sdn Bhd, Hary­ati Za­harud­din and Amirul Arifin Sopiee Md No­ordin for the trans­ac­tion, which will be satisfied via an is­suance and al­lot­ment of 75 mil­lion new Bin­tai Kin­den shares at an is­sue price of 20 sen each.

OPM is a spe­cial pur­pose ve­hi­cle in­volved prin­ci­pally in prop­erty man­age­ment that holds a 25-year RM121 mil­lion con­ces­sion to de­sign, con­struct, com­plete, op­er­ate and main­tain the en­tire in-cam­pus ac­com­mo­da­tion for Kolej Te­knologi Is­lam Melaka (KUIM). OPM had in Jan­uary this year ap­pointed Bin­tai Kin­den as its turnkey con­trac­tor for the same project.

OPM will un­der­take the main­te­nance of all the fa­cil­i­ties and has the right to de­mand, col­lect and re­tain mu­tu­ally agreed charges through­out the con­ces­sion pe­riod.

“The pro­posed ac­qui­si­tion will en­able the com­pany to par­tic­i­pate and be en­ti­tled to the fu­ture re­cur­ring in­come streams from the con­ces­sion ar­range­ments busi­ness that is the pro­vi­sion of man­age­ment and main­te­nance ser­vices to KUIM over the ten­ure of the con­ces­sion,” Bin­tai Kin­den said.

The pur­chase con­sid­er­a­tion takes into ac­count the net li­a­bil­i­ties of OPM, fu­ture prospects of OPM and val­u­a­tion range of the con­ces­sion be­tween RM24.5 mil­lion and RM26.7 mil­lion as as­cribed by Russ Ooi & As­so­ciates.

The pro­posed deal is ex­pected to be com­pleted by the first half of 2017, sub­ject to ap­provals from Bursa Se­cu­ri­ties and Bin­tai Kin­den share­hold­ers. KAF In­vest­ment Bank Bhd is the ad­viser for the trans­ac­tion.

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