Major shareholders to privatise Nadayu

by **Cals** Sat 22 Jun 2013, 16:39

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Friday, 21 June 2013 19:13

KUALA LUMPUR (June 21): Major shareholders of Nadayu PROPERTIES [] Bhd plans to privatise the firm via a selective capital reduction and repayment.
Nadayu told the exchange today that its major shareholders ATIS IDR Ventures Sdn Bhd and Zhuojian Associates Sdn Bhd intends to privatise the firm due to the "very low" trading liquidity of its shares.
Nadayu said ATIS and Zhuojian, both of which, own a collective 70.55% in Nadayu, plans to cancel the remaining 29.45% held by minority shareholders.
Upon completion of the capital reduction, ATIS and Zhuojian will own 100% of Nadayu. The major shareholders will pay RM1.39 a share to owners of the cancelled units.
This compares to Nadayu’s latest reported book value of RM1.30 a share.
In a separate statement, Nadayu said it plans to dispose of its stakes in two property development associates to Tambun Indah Land Bhd for RM112.23 million.
Nadayu said it plans to sell its 30% and 40% stakes in Tambun Indah Development Sdn Bhd (TIDSB) and Palmington Sdn Bhd (PSB) respectively to Tambun Indah.
The cash and stock transaction will see Tambun Indah pay Nadayu RM40.73 million cash and issue 55 million new shares to the seller.
Hence, Nadayu is expected to become a major shareholder in Tambun Indah with a 15% stake, based on the latter's expanded issued base of RM373.6 million shares.
"The proposed disposals will provide an opportunity for Nadayu group to realise and unlock the value of its investments in its associated companies, namely TIDSB and PSB, enabling it to re-mobilise capital and resources for expansion of the existing business operations of Nadayu.
"Meanwhile, by holding the consideration shares, Nadayu is still able to participate in and benefit from the development, potential earnings and capital appreciation of the said land in Tambun Indah," Nadayu said.
The proposed disposal is due for completion by the fourth quarter of this year.
Trading of Nadayu and Tambun Indah shares were suspended today to facilitate the announcement of the corporate proposals. Trading of both stocks will resume this Monday (June 24).