Prized asset: IGB REIT owns The Gardens Mall and Megamall in Mid Valley City.
PETALING JAYA: Goldis Bhd’s major shareholders will have to wait for another month to know whether their proposal to take over IGB Corp Bhd will be put up for consideration.
In an announcement yesterday, IGB said Goldis had agreed to its request for an extension of time to April 28 for the group to evaluate the proposed offer.
“The board of directors of IGB wishes to announce that IGB had on March 30 written to Goldis requesting an extension of time up to 5pm on April 28 to evaluate the proposed scheme,” IGB said.
“The board of directors of Goldis had on March 30 agreed to the extension of time,” it added.
Goldis currently owns a 73.43% stake in IGB.
IGB – which is principally involved in property development and management, construction, and retail and hotel operations – last month received an offer from Goldis to acquire the outstanding shares it did not already own in IGB at RM3 each.
Goldis, whose private equity arm has investments in a number of high-growth industries, controls IGB, a property developer, and IGB REIT, both listed on Bursa Malaysia.
IGB REIT owns The Gardens Mall and Megamall in Mid Valley City.
The proposed offer by Goldis represented a 19% premium to IGB’s share price of RM2.52 when the offer was launched on Feb 23.
IGB was supposed to announce its decision on the offer on March 30.
In a letter to IGB, Goldis said the takeover offer would be satisfied in either cash or a combination of cash and shares in Goldis. The corporate exercise would eventually lead to the delisting of IGB and making it a unit of Goldis.
Goldis said the move was to eliminate its holding company discount on IGB.
Goldis said the corporate exercise was to provide it with greater flexibility to plan and decide on the strategic and business directions of IGB, and therefore increase its investments in a profitable group. IGB invests in and manages a diverse portfolio of long-term commercial, retail, residential and hospitality assets in Asia, Australia, the United States and Europe.
IGB saw its net profit increase 37.4% to RM298mil for the financial year ended Dec 31, 2016 from RM217mil in the preceding year on higher operating income.
The group’s revenue fell 1% to RM1.15bil last year from RM1.18bil in the preceding year on lower contributions from its property development and property investment divisions.
IGB’s earnings per share rose to 22.32 sen from 16.25 sen.
As at Dec 31, 2016, its net asset per share stood at RM3.37, while its cash and cash equivalents stood at RM992mil.
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