Tambun Indah shareholders approve acquisitions

Business & Markets 2013
Written by Wei Lynn Tang of theedgemalaysia.com
Friday, 01 November 2013 10:24
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KUALA LUMPUR: Shareholders of Tambun Indah Land Bhd approved the
proposed acquisitions of minority interests in Tambun Indah Development Sdn
Bhd (TIDSB) and Palmington Sdn Bhd (PSB) for RM88.2 million at the EGM
held yesterday in Penang.
The acquisition of the remaining 40% in PSB and 30% in TIDSB, which it did
not own from Pembangunan Bandar Mutiara Sdn Bhd, a wholly owned
subsidiary of Nadayu Properties Bhd, will allow Tambun Indah to consolidate its
future earnings from the Pearl City development.
“Pearl City has a balance gross development value (GDV) of RM1.9 billion,
which is expected to contribute an estimated profit before tax of more than
RM600 million to the group over the next six to seven years. This exercise will
generate greater value for our shareholders from a medium- to long-term
perspective”, said Teh Kiak Seng, managing director of Tambun Indah.
Pearl City is Tambun Indah’s flagship mixed development, located in the
southern district of Seberang Perai.
Started in 2009, the project is undertaken by PSB and TIDSB, and is expected
to be completed by 2020.
The purchase consideration of RM88.2 million will be satisfied partly via the
issuance of 55 million new ordinary shares at RM1.30 each, and RM16.7
million cash.
Upon the completion of the exercise in the fourth quarter of this year, Nadayu
will become a 14.2% substantial holder of Tambun Indah, the second largest
after Teh’s total direct and deemed shareholding of 38.6%.