KUALA LUMPUR: Eastern & Oriental Bhd (E&O) shares were active on resuming trade on Monday, Aug 29 after SIME DARBY BHD [] said it was acquiring a 30% strategic stake in E&O for RM2.30 per share or RM766 million.
At 9.40am, E&O was up two sen to RM1.47 with 5.82 million shares.
Sime Darby said on Aug 29 that the acquisition was to extend its presence in the property development and hospitality sectors, beyond the Greater KL region, specifically in Penang and Johor.
Sime Darby said it was acquiring 273 million E&O Shares and 60 million irredeemable convertible secured loan stocks (ICSLS) in E&O -- which on a fully diluted basis -- was about a 30% equity interest in the niche property developer.
Sime Darby will acquire the stake from E&O managing director Datuk Tham Ka Hon and several other major shareholders of E&O.
The statement confirms a report by the www.theedgemalaysia.com last Friday, Aug 26 that Sime Darby may acquire a 30% stake in E&O.
Bothe companies also entered into a three-year collaboration agreement to formalise a framework for their property development businesses.
Sime Darby said at RM2.30 per E&O share, the deal was valued at about a 20% discount to E&O's estimated realisable net asset value (RNAV) of RM3.2 billion.
At 9.40am, E&O was up two sen to RM1.47 with 5.82 million shares.
Sime Darby said on Aug 29 that the acquisition was to extend its presence in the property development and hospitality sectors, beyond the Greater KL region, specifically in Penang and Johor.
Sime Darby said it was acquiring 273 million E&O Shares and 60 million irredeemable convertible secured loan stocks (ICSLS) in E&O -- which on a fully diluted basis -- was about a 30% equity interest in the niche property developer.
Sime Darby will acquire the stake from E&O managing director Datuk Tham Ka Hon and several other major shareholders of E&O.
The statement confirms a report by the www.theedgemalaysia.com last Friday, Aug 26 that Sime Darby may acquire a 30% stake in E&O.
Bothe companies also entered into a three-year collaboration agreement to formalise a framework for their property development businesses.
Sime Darby said at RM2.30 per E&O share, the deal was valued at about a 20% discount to E&O's estimated realisable net asset value (RNAV) of RM3.2 billion.
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