By Khairie Hisyam
Lee Shin Cheng
Shareholders present at IOI Properties Group’s extraordinary general meeting (EGM) today has given the go-ahead for the company’s acquisitions of land bank totalling 161.75ha from major shareholder Lee Shin Cheng for nearly RM1.6 billion.
In a regulatory filing, IOI Properties said votes against the two deals constituted only 0.005% of shares held by present shareholders. The total shareholding present and voting in the EGM today amounted to roughly a third of IOI Properties’ total shares base of about 3.77 billion shares.
On Oct 20, 2015, the company said it had entered into two conditional share sale agreements with Lee and his wife Hoong May Kuan to buy over their entire equity stake in Mayang Development Sdn Bhd and Nusa Properties Sdn Bhd.
Together both deals amount to about RM1.58 billion in value to be satisfied via a combination of cash and new shares.
Both companies collectively control land bank totalling 161.75ha located next to IOI Properties’ IOI City Resort near Putrajaya and a successful acquisition would boost IOI Properties’ land bank in the area from 20.23ha to 181.99ha.
To acquire Mayang Development for RM1.26 billion, IOI Properties would pay RM126.35 million in cash with the remaining RM1.14 billion settled via issuance of 514.53 million new shares at issue price of RM2.21 per share.
To acquire Nusa Properties for RM319.83 million, IOI Properties would pay RM31.98 million in cash with the remaining RM287.84 million settled via issuance of 130.25 million new shares at RM2.21 per share.
“The proposed acquisitions will enable the group to enhance its existing and future product offerings within the IOI Resort City and provide it with the opportunity to extend the lifespan of its IOI Resort City development project,” said IOI Properties in October. “Furthermore, it is expected that the additional land bank will allow the group to embark on the development of the second phase of the project and to capitalise on the success of the mall.”
Lee is executive chairman of IOI Properties and founder of the larger IOI Group, which also counts Bursa Securities-listed plantation outfit IOI Corp under its stable. While IOI Properties was listed as IOI Properties Berhad previously, it was delisted in 2009 before redebuting on Jan 15, 2014.
According to IOI Properties’ latest available annual report, the Lee family holds both direct and indirect interest amounting to over 52% in IOI Properties.
At 3.51pm, IOI Properties was down 3 sen at RM2.22 per share.
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