Kuala Lumpur, May 8 \u2013 Iskandar Waterfront Holdings Sdn Bhd (IWH) last week entered into a Merger Agreement with Iskandar Waterfront City Berhad (IWC), following the acceptance by the board of IWC to table the merger scheme to IWC\u2019s shareholders.<\/p>\n
The merger scheme forms part of a proposed rationalisation and restructuring exercise undertaken by IWH to consolidate the land bank of IWH Group, with the aim of creating greater synergies and economies of scale (Proposed R&R Exercise).<\/p>\n
Through the merger scheme, IWH will acquire the remaining 61.7% stake in IWC at an offer price of RM1.50 per IWC share, to be satisfied via issuance of IWH\u2019s shares on the basis of one new IWH share for one existing IWC share (Swap Ratio). Thereafter, IWH will assume the listing status of IWC.<\/p>\n
Subsequent to this, as part of the Proposed R&R Exercise, IWH will see the injection of 3,598 acres of land bank with an open market value (OMV) of RM4.3 billion into IWH through definitive agreements with the respective vendors, namely Tan Sri Lim Kang Hoo (Director cum Executive Vice Chairman of IWH), Kumpulan Prasarana Rakyat Johor Sdn Bhd (the investment arm of the Johor State Government) and other Johor state entities within 60 days from the date of the Merger Agreement.\u00a0<\/p>\n
Following the completion of the corporate exercise, IWH will have a total land bank of approximately 6,773 acres in Johor Bahru with an estimated open market value of approximately RM30 billion, as assessed by the appointed independent valuers.<\/p>\n
IWH remains confident in the prospects of the proposed merger scheme and proposed restructuring to establish one of the largest listed strategic master property developers on Bursa Malaysia.\u00a0<\/p>\n
This merger scheme will provide an opportunity for IWC\u2019s shareholders to participate in a significantly enlarged listed entity with developments in strategic locations. Danga Bay and Tebrau Bay are prime waterfront land in Johor Bahru, and will transform the waterfront city in Iskandar Malaysia. More importantly, given that these are meant to be long-term projects spanning 25-30 years, IWH is confident that there will be significant capital appreciation and value creation during this time.<\/p>\n
Separately, IWC has also entered into a Supplementary Agreement with Greenland Tebrau Sdn Bhd in relation to a proposed land disposal, whereby both parties have mutually agreed to all the payment terms and conditions in meeting their respective obligations.<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Kuala Lumpur, May 8 \u2013 Iskandar Waterfront Holdings Sdn Bhd (IWH) last week entered into a Merger Agreement with Iskandar Waterfront City Berhad (IWC), following the acceptance by the board of IWC to table the merger scheme to IWC\u2019s shareholders. The merger scheme forms part of a proposed rationalisation and restructuring exercise undertaken by IWH […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-461","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=461"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/461\/revisions"}],"predecessor-version":[{"id":6341,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/461\/revisions\/6341"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}