(From left) AmanahRaya Trustees Bhd director Adenan bin Md Yusof, PNB president and group chief executive officer Datuk Abdul Rahman Ahmad, PNB Development chairman Tan Sri Hamad Kama Piah Bin Che Othman, PNB chairman Tan Sri Abdul Wahid Omar, S P Setia chairman Tan Sri Wan Mohd Zahid, Khor Chap Jen and PNB Development CEO and Seriemas Development director Mohd Salem Bin Kailany in the signing ceremony.

By GOH OOI HWA

Kuala Lumpur: S P Setia Bhd, Permodalan Nasional Bhd (PNB) and Amanahraya Trustees Bhd (ASB) has signed a non-binding Memorandum of Intent ((MOI) to the proposed acquisition by S P Setia of the entire equity interest in I&P Group Sdn Bhd (I&P Group).

This proposed acquisition includes I&P’s 4,263 acres of landbank, enabling a fast track in SP Setia’s expansion plan.

The indicative price is estimated to be within the range of RM3.5bil to RM3.75 bil.

The proposed acquisition will be funded by a combination of equity, internally generated funds and borrowings.

S P Setia will also buy 342.5 acres of land in Bangi, Selangor from the subsidiary of PNB Development Sdn Bhd, Seriemas Development Sdn Bhd, with about RM447.58mil or at RM30 per sq ft.

With the acquisition of the land of Seriemas Development Sdn Bhd, SP Setia is planning for a mixed development township with expected gross development value (GDV) of RM2.74bil .

Upon successful completion of the proposed acquisition, S P Setia will have increased its prime land banks in Central Klang Valley and Johor Bahru significantly.

S P Setia president and chief executive director Datuk Khor Chap Jen said the group believe the acquisition of I&P Group will allow them to tap the synergistic opportunities offered by I&P Group, given that its land banks are located within growth areas in central part of Klang Valley and Johor Bahru.

"As the major shareholder of both companies, we are pleased to see the coming together of S P Setia and I&P Group, two longstanding property brands that have strong track record of delivering value to homeowners and investors," said PNB president and group chief executive Datuk Abdul Rahman Ahmad.

"This will create the largest property company in Malaysia and one of the leading players, with a total landbank of close to 10,000 acres," he added.

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