PETALING JAYA: Iskandar Waterfront Holdings Sdn Bhd (IWH) will include its 30% stake in the Bandar Malaysia project as part of its proposed corporate exercise to take over the listing status of Iskandar Waterfront City Bhd (IWC).
IWH has a joint venture (JV) with China Railway Engineering Corp (M) Sdn Bhd that has a 60% stake in the 485-acre Bandar Malaysia project. The remaining 40% is held by the Ministry of Finance Inc (MoF). The JV gives IWH an effective 30% interest in Bandar Malaysia.
In a statement yesterday, IWH said that its JV company with China Railway Engineering Corp was included in the proposed exercise.
“IWH would like to clarify that this prime piece of city land is included in the corporate exercise.
On Wednesday, IWH announced its plan to take over the listing status of IWC through a share swap between the two. The exercise will see the listing of IWH, which has been on the cards for more than two years now.
To facilitate the exercise, each shareholder of IWC will be offered one IWH share.
Lim owns 63% of IWH through his private company Credence Resources Sdn Bhd. The remaining shares in IWH, which owns some 4,300 acres of waterfront land in Johor Baru, are held by Kumpulan Prasarana Rakyat Johor (KPRJ). IWH, in turn, holds a 38.34% stake in IWC that has another 1,072 acres mainly located on the seafront located in Tebrau, Johor.
Under the proposed exercise announced on Wednesday, Lim would inject all the land he owns in Johor Baru outside IWH into the new entity in exchange for shares. KPRJ, The Sultan of Johor and the MoF would also be offered to consolidate their land or equity in subsidiary levels at the IWH level.
If the relevant stakeholders agree to consolidate their land at the IWH level, then it would have up to 7,400 acres of land fronting the sea between Johor Baru and Singapore.
At RM93 per sq ft, the 7,400 acres of prime city land in Johor is estimated to have a value of RM30bil.
Under the exercise, IWH will offer its shares at RM1.50 a share and redeemable convertible preference shares (RCPS) to several parties, including Lim and KPRJ, in return for injecting their land into the new-look IWH.
The RM30bil indicative valuation tag on IWH does not include the value of its effective 30% interest in Bandar Malaysia project.
Upon the conclusion of the merger and restructuring, the expanded share capital of IWH is expected to be up to 4.3 billion shares, and if based on the offer price of IWC at RM1.50, the market capitalisation of the NewCo would be RM6.45bil.
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