Business Times: Fri, Jul 13
CAPITALAND has sold its entire 20.75 per cent stake in Bursa-listed United Malayan Land Bhd (UML) for RM156.45 million (S$62.3 million).
The stake had been acquired more than a decade ago by the former DBS Land, prior to its merger in 2000 with Pidemco Land to form CapitaLand.
The price works out to RM2.50 per UML share.
The purchaser of the 62.58 million UML shares, which CapitaLand owned through wholly owned subsidiaries Opal Holdings Pte Ltd and Prime Equities Pte Ltd, is Seleksi Juang Sdn Bhd, a party unrelated to CapitaLand.
CapitaLand expects to book a net gain of about S$5.9 million for the financial year ending Dec 31, 2012 from the transaction.
Seleksi Juang has given an undertaking to the CapitaLand subsidiaries that if as a result of the sale, a general offer to purchase further UML shares is triggered and made by the buyer under the Malaysian takeover code at a final offer price above RM2.50, the buyer will compensate and pay to each vendor the difference between the final offer price and RM2.50 for each share sold within 30 days from the completion of the takeover offer.
UML's principal activities are investment holding and property development.
"The sale is consistent with CapitaLand's active capital management strategy," CapitaLand said in its filing with SGX. "It reflects CapitaLand's disciplined focus on its core markets and its ability to take advantage when the right opportunity to recycle capital presents itself," it said.
Shares of CapitaLand closed trading yesterday at S$2.92, down one cent.
In its announcement yesterday, CapitaLand said that the consideration for the UML shares was arrived at on a willing-buyer willing-seller basis, taking into account, among other factors, the carrying value of each sale share of RM1.33.
The market value of each sale share based on the closing price of UML on July 11, the last market day immediately before yesterday's announcement, is RM2.37.
The sale was transacted yesterday and settlement will take place on July 17.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
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