Tuesday, September 6, 2011

BRDB rises on major shareholder's plan to acquire assets

KUALA LUMPUR: Bandar Raya Development Bhd (BDRB) shares and warrants advanced in early trade on Tuesday, Sept 6 after the company received a proposal from its major shareholder, Ambang Sehati Sdn Bhd to acquire selected investment assets of the group, including The Bangsar Shopping Centre and Menara BRDB.

At 9.20am, BRDB shares added six sen to RM2.38 while the warrants gained eight sen to RM1.36.

BDRB had received the proposal from Ambang Sehati, which owns 18.88%, for the corporate exercise as the BDRB shares had been trading at a significant discount to its net asset value.

'In the proposal letter, Ambang Sehati has proposed to acquire selected investment assets of the group. Ambang Sehati believes that this would enable the group to monetise these assets and achieve a more efficient utilisation of its capital,' it said.

The announcement followed a report by the Edge weekly on Sept 5 that BRDB was set to pay a bumper dividend to its shareholders in an exercise that may involve the disposal of BSC.

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