SP Setia To Acquire Equity Stake In I&P For Up To RM3.75 Bln
KUALA LUMPUR, April 14 (Bernama) -- SP Setia Bhd has proposed to acquire the entire equity stake in I&P Group Sdn Bhd, thus becoming the largest property player in Malaysia.
In a statement today, the real estate company said, the exercise, estimated to be within the range of RM3.5 billion to RM3.75 billion, would increase its total landbank to close to 4,046.86 hectares (ha).
Its President/Chief Executive Officer, Datuk Khor Chap Jen, said the acquisition would allow the company to tap into the synergistic opportunities that I&P Group could offer, given that its pieces of land were located within the growth areas in the central part of Klang Valley and Johor Bahru.
"I&P Group has a strong balance sheet, with very low debt level, which is an excellent platform to facilitate future growth and execution," he said.
Permodalan National Bhd (PNB) owned 55 per cent of I&P Group, while the other 45 per cent is owned by Amanahraya Trustees Bhd.
In a joint statement today, PNB and SP Setia said they had signed a non-binding memorandum of intent today to start talks on the proposed acquisition, which would be funded by a combination of equity, internally generated funds and borrowings.
On another development, SP Setia said, it would also acquire 138.6 hectares in Bangi from PNB Development Sdn Bhd's subsidiary, Seriemas Development Sdn Bhd for RM447.58 million.