SP SETIA FINALISES I&P MERGER DEAL
Firm signs conditional share purchase agreement; plans to raise RM1.2b via rights issue and new shares
SP Setia Bhd has finalised its merger with I&P Group Sdn Bhd, after agreeing to buy all the latter’s shares for RM3.65 billion.
This will boost SP Setia’s landbank from 2,066.68ha to 3,785.63ha.
It signed a conditional share purchase agreement yesterday.
The company had on April 14 sealed a non-binding memorandum of intent (MoI) with Permodalan Nasional Bhd and Amanahraya Trustees Bhd to take over I&P.
SP Setia appointed three independent valuers, namely Messrs Jones Lang Wootton, Messrs CH Williams Talhar & Wong Sdn Bhd and Messrs Khong & Jaafar Sdn Bhd to assess all I&P Group’s assets and investments.
The aggregated market value of the properties stood at about RM7.39 billion as at April 30 this year, while I&P Group’s unaudited net asset value (NAV) was RM3.23 billion.
After factoring in the appraised market values, the group’s adjusted unaudited NAV was RM6.01 billion. Accordingly, the RM3.65 billion price tag was at a discount of 39.3 per cent to the adjusted unaudited NAV.
SP Setia president and chief executive officer Datuk Khor Chap Jen said the synergistic acquisition would further strengthen its brand presence in Malaysia and help pave the way for the creation of greater shareholder value.
“I&P’s landbanks are located in Klang Valley and Johor Baru, and mostly in areas where SP Setia had established a stronghold with its Setia brand. I&P Group will facilitate SP Setia to access wider market segments. Additionally, I&P Group has a strong balance sheet,” he said in a statement yesterday.
I&P Group has 1,718.95 land, which includes 362.20ha in Semenyih, 463.91ha in Shah Alam and Klang areas, and 685.01ha in Johor Baru.
Its key flagship ongoing developments include Bandar Kinrara, Alam Impian, Kota Bayuemas and Alam Sari in the Klang Valley; and Taman Pelangi Indah, Taman Pelangi and Taman Perling in Johor Baru.
The combined undeveloped landbank would total up to 3,785.63ha, making SP Setia the third largest property developer in Malaysia by land size.
SP Setia also yesterday announced a RM1.2 billion rights issue and private placement of new shares to fund the acquisition.