TA ENTERPRISE Bhd has outlined plans to list its property business and apply for an investment banking licence as the group seeks to expand.
The group, 33.7 per cent held by Datuk Tony Tiah Thee Kian, has proposed to sell its property units to TA Global Bhd in an all-share deal and raise about RM613 million in an initial public offering (IPO).
The IPO, arranged by AmInvestment Bank Bhd, comes at a time when the stock market is sluggish, having lost some 25 per cent this year.
"The proposed reorganisation and listing will unlock the value of its strategically located properties and realise its investment in the said properties," TA said in a statement to Bursa Malaysia yesterday.
TA will sell all its shares in TA Properties Sdn Bhd, Sanjung Padu (M) Sdn Bhd and Wales House Trust to TA Global Bhd for RM1.75 billion. Wales House owns the Radisson Plaza Hotel in Sydney, Australia.
This will be satisfied with 2.24 billion new TA Global shares of 50 sen each priced at 50 sen apiece.
TA Global will also issue 1.22 billion new irredeemable convertible preference shares of 50 sen each, priced at 50 sen a unit.
The sale will result in a capital gain of RM924.5 million for TA.
In addition, TA will sell some houses in Taman Duta to TA Global for RM26.9 million in an all-share deal.
TA Global will then carry out a 10-for-27 rights issue involving 860 million shares.
Subsequently, TA Global will offer 350 million new shares, priced at an indicative 50 sen, to public investors under its IPO.
At the same time, TA will offer 875 million existing TA Global shares to Bumiputera investors approved by the Minister of International Trade and Industry. This will raise some RM438 million.
"TA will utilise a portion of the proceeds to apply for an investment banking licence. The remaining cash proceeds will be utilised for the future working capital of TA," it said.
TA plans to list TA Global, which will have a paid-up capital of RM1.75 billion, on the main board of Bursa Malaysia.
Finally, TA will distribute its capital to shareholders. However, instead of a cash payment, it will give investors 1.43 billion TA Global shares and all of TA Global's preference shares.
In the end, TA will hold at least 24.3 per cent, or 849 million shares, of TA Global. It expects to complete all of the proposals by the year-end.
Shares of TA fell half a sen to close at 82 sen yesterday.
By New Straits Times
The group, 33.7 per cent held by Datuk Tony Tiah Thee Kian, has proposed to sell its property units to TA Global Bhd in an all-share deal and raise about RM613 million in an initial public offering (IPO).
The IPO, arranged by AmInvestment Bank Bhd, comes at a time when the stock market is sluggish, having lost some 25 per cent this year.
"The proposed reorganisation and listing will unlock the value of its strategically located properties and realise its investment in the said properties," TA said in a statement to Bursa Malaysia yesterday.
TA will sell all its shares in TA Properties Sdn Bhd, Sanjung Padu (M) Sdn Bhd and Wales House Trust to TA Global Bhd for RM1.75 billion. Wales House owns the Radisson Plaza Hotel in Sydney, Australia.
This will be satisfied with 2.24 billion new TA Global shares of 50 sen each priced at 50 sen apiece.
TA Global will also issue 1.22 billion new irredeemable convertible preference shares of 50 sen each, priced at 50 sen a unit.
The sale will result in a capital gain of RM924.5 million for TA.
In addition, TA will sell some houses in Taman Duta to TA Global for RM26.9 million in an all-share deal.
TA Global will then carry out a 10-for-27 rights issue involving 860 million shares.
Subsequently, TA Global will offer 350 million new shares, priced at an indicative 50 sen, to public investors under its IPO.
At the same time, TA will offer 875 million existing TA Global shares to Bumiputera investors approved by the Minister of International Trade and Industry. This will raise some RM438 million.
"TA will utilise a portion of the proceeds to apply for an investment banking licence. The remaining cash proceeds will be utilised for the future working capital of TA," it said.
TA plans to list TA Global, which will have a paid-up capital of RM1.75 billion, on the main board of Bursa Malaysia.
Finally, TA will distribute its capital to shareholders. However, instead of a cash payment, it will give investors 1.43 billion TA Global shares and all of TA Global's preference shares.
In the end, TA will hold at least 24.3 per cent, or 849 million shares, of TA Global. It expects to complete all of the proposals by the year-end.
Shares of TA fell half a sen to close at 82 sen yesterday.
By New Straits Times
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