NOD FOR TAKEOVER OF 5 FIRMS
70pc of Land & General minority shareholders voted for resolutions, says managing director
LAND & General Bhd (L&G)’s minority shareholders yesterday approved a related-party transaction to take over five property firms from its major shareholder, Malaysia Land Properties Sdn Bhd (Mayland), for RM344 million.
Under the proposal, L&G will take over the entire equity interest in four companies from Mayland, namely Primal Milestone Sdn Bhd (PMSB), Quantum Bonus Sdn Bhd (QBSB), Forward Esteem Sdn Bhd and Triumph Bliss Sdn Bhd.
There is also a call option for the acquisition of Soho Prestige Sdn Bhd.
PMSB and QBSB have existing shareholdings of 43 per cent and two per cent, respectively, in Country Garden Properties Malaysia Sdn Bhd (CGPM), with the remaining 55 per cent held by Country Garden Real Estate Sdn Bhd (CGRE), which is wholly-owned by China-based Country Garden Holdings Co Ltd.
CGPM is a joint venture between Mayland and CGRE.
The acquisitions will inject new property development projects and landbank into L&G, a move that is expected to cultivate earnings in the long term.
L&G managing director Low Gay Teck said while around 30 per cent of minority shareholders were not satisfied, 70 per cent voted for the three resolutions to buy the land parcels from Mayland, rights issue and exemption to Mayland from undertaking mandatory takeover of remaining shares in L&G.
“After the acquisitions, L&G’s share capital will be enlarged and will also strengthen the group’s current earnings base.”
Low said after the purchase of 45ha in U10, Shah Alam, last year, L&G’s cash reserves still stood at a healthy level of more than RM300 million.
“L&G’s cash reserves are healthy. We do not want to further deplete it. The rights issue is meant to fund the RM344 million land parcel purchases.”
On dividend payout, Low said in 2014, 2015 and last year, L&G had given two sen a share to shareholders and this worked out to an annual yield of five per cent.
“We are cautiously optimistic on the outlook for this year. Dividend payout may be the same or higher than last year,” he added.