KUALA LUMPUR: UEM Land Sdn Bhd, the property development subsidiary of UEM Group Bhd, will be listed in September in a restructuring exercise worth between RM2bil and RM3bil, while UEM World Bhd, the listed investment holding company of the group, will eventually be delisted.
UEM Group has a 51.9% stake in UEM World and 28.5% stake in UEM Land.
The restructuring exercise would involve the non-renounceable restricted offer for sale (ROS) of UEM World’s shares in four listed subsidiaries to its (UEM World’s) shareholders. The company’s stakes in the four listed subsidiaries are Pharmaniaga Bhd (72.5%), Opus Group Bhd (62.2%), UEM Builders Bhd (51.7%) and Cement Industries of Malaysia Bhd (CIMA, 50.7%).
From left: UEM Group Bhd senior director of corporate development Raja Azmi Raja Nazuddin, Datuk Ahmad Pardas Senin and UEM Land Sdn Bhd managing director Wan Abdullah Wan Ibrahim at the media briefing
The ROS price would be at a 15% premium to the one-month volume weighted average market price of the shares of the listed subsidiaries up to Feb 12 and entitled shareholders would be able to acquire the shares in proportion to their shareholding in UEM World on a rights basis.
UEM Group would also undertake to acquire all the shares not acquired under the ROS besides acquiring UEM World’s other remaining businesses and undertakings for about RM14mil.
UEM World, which has a 71.5% stake in UEM Land, would then distribute its equity interests in the company to its shareholders via a dividend in specie (DIS) followed by the listing of UEM Land by way of a new company. The transfer of UEM World’s stake in UEM Land to UEM Group would result in the latter having a 65.7% stake in the company.
UEM World would also undertake a capital repayment exercise to return all the cash to its shareholders following the proposed ROS and proposed DIS.
The company is also offering two options for shareholders. For those who opt for UEM Land shares, the exercise will see them getting 125 UEM Land shares plus a capital repayment of RM125.82 for every 100 UEM World shares. For those who wish to participate in the ROS, they will have to pay RM120.26 to receive a basket of 35 shares in UEM Builders, 21 shares in Opus Group, five shares in Pharmaniaga and five shares in CIMA and will also receive the capital repayment sum.
UEM Land’s issued and paid-up share capital as at Jan 31 was RM1.09bil, comprising 2.18 billion shares, while UEM World had an issued and paid-up capital of RM2.1bil.
UEM World managing director Datuk Ahmad Pardas Senin said the exercise would provide a platform for further growth in the company’s business.
“It is designed to give shareholders of UEM World direct participation in UEM Land, which in recent periods has increasingly become the driver for the share price of UEM World,” he told a media briefing yesterday.
Ahmad Pardas added that the exercise would also enhance the transparency of valuation and unlock value in UEM Land.
“For those who opt for the ROS, this is an opportunity to participate directly in the listed subsidiaries and, at the same time, to realise value from monetisation of the listed subsidiaries at a premium to the market value,” he said.
He added that the exercise was expected to be complete in September if things were to go according to plan.
By The Star (by Fintan Ng)
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