KUALA LUMPUR: SP SETIA BHD [] is taking full control of KL Eco City Sdn Bhd with the proposed acquisition of the remaining 40% stake for RM75 million via a share swap.
It said on Monday, July 25 it would issue 19.379 million new SP Setia shares at RM3.87 each to Yayasan Gerakbakti Kebangsaan (YGK),
Currently, KLEC is 60% owned by SP Setia. Upon completion of the proposed acquisition, KLEC will become a unit of SP Setia.
SP Setia said the purchase consideration of RM75 million was based on the equity valuation of KLEC using the discounted cash flow method of valuation.
This took into account the approved development order for the stratified mixed residential and commercial developments of the project known as KL Eco City Project and the terms of the privatisation agreement to be entered into between KLEC and Datuk Bandar Kuala Lumpur for the KL Eco City project.
The company and YGK had appointed CIMB Investment Bank Bhd to appraise the equity value of KLEC based on the financial forecasts and projections prepared by the management of KLEC.
'Based on the valuation report by CIMB dated July 1, 2011, the valuation of 40% equity interest in KLEC ranges between RM53 million and RM73 million.
'The premium of the purchase price to the above valuation reflects the board's confidence in the prospects of the KL Eco City project,' it said.
The KL Eco City Project is an integrated commercial and residential development. The development was master planned by Jerde Partnership, an international award-winning architect and master planner well-known for integrated mixed-use commercial and residential developments.
SP Setia said the development's key advantages are its strategic location near the affluent Bangsar area and its connectivity to key roads, highways, the KTM Commuter and the LRT Kelana Jaya lines.
It said on Monday, July 25 it would issue 19.379 million new SP Setia shares at RM3.87 each to Yayasan Gerakbakti Kebangsaan (YGK),
Currently, KLEC is 60% owned by SP Setia. Upon completion of the proposed acquisition, KLEC will become a unit of SP Setia.
SP Setia said the purchase consideration of RM75 million was based on the equity valuation of KLEC using the discounted cash flow method of valuation.
This took into account the approved development order for the stratified mixed residential and commercial developments of the project known as KL Eco City Project and the terms of the privatisation agreement to be entered into between KLEC and Datuk Bandar Kuala Lumpur for the KL Eco City project.
The company and YGK had appointed CIMB Investment Bank Bhd to appraise the equity value of KLEC based on the financial forecasts and projections prepared by the management of KLEC.
'Based on the valuation report by CIMB dated July 1, 2011, the valuation of 40% equity interest in KLEC ranges between RM53 million and RM73 million.
'The premium of the purchase price to the above valuation reflects the board's confidence in the prospects of the KL Eco City project,' it said.
The KL Eco City Project is an integrated commercial and residential development. The development was master planned by Jerde Partnership, an international award-winning architect and master planner well-known for integrated mixed-use commercial and residential developments.
SP Setia said the development's key advantages are its strategic location near the affluent Bangsar area and its connectivity to key roads, highways, the KTM Commuter and the LRT Kelana Jaya lines.
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