Sunway REIT: Its acquisition of the building that houses Sunway Medical Centre for rm310 million would grow its asset size to rm4.95 billion, further entrenching its position as the largest REIT in Malaysia. At present (Oct 2012), the group’s current asset size of rm4.64 billion is only slightly ahead of the newly listed IGB REIT.
The 10 year master lease reached between Sunway REIT and the vendor Sunway Medical Centre, a subsidiary of Sunway Bhd, guarantees Sunway REIT a fixed income growth.
The acquisition will be funded through equity and debt. Thus Sunway REIT will seek shareholders’ approval for a proposed placement of new units to raise gross proceeds of up to rm320 million. The placement is not intended to be placed out to Sunway Bhd, whose stake in Sunway REIT will be above 33% threshold after the placement, from current 37%.
Assuming that the acquisition is fully funded by equity, the REIT will reduce its gearing from 0.33 times to 0.31 times. Full equity funding will prevent gearing from reaching the 50% ceiling set by SC, when it plans to acquire more properties.
The group is in acquisition mode and working hard to expand its portfolio.
Genting Bhd: The nephews of Genting Bhd’s boss, Tan Sri Lim Kok Thay are branching out to build their own casino and leisure business. They are taking Australialisted wagering group Two Way Ltd which will be renamed Donaco Intl Ltd.
The takeover will pave the way for an asset injection of a 75% stake in an expanding casino and hotel complex in Vietnam into Two Way. Donaco which has no financial ties with the Genting group, will initially focus on the expansion of the Lao Cai Intl casino and hotel complex in Vietnam, which represents all of Donaco’s assets, but is also planning two similar projects and a casino cruise ship.
Two Way has been developing interactive television wagering applications which has being used in Australia.
LBS: Its controlling shareholder Intelrich Sdn Bhd intends to mop up more shares on the open market to raise its shareholding in the property group.
MD Datuk Lim Hock San also heads the Lim family’s investment vehicle Intelrich said LBS is undervalued at current price (09 Oct 2012).
Intelrich currently (Oct 2012) holds 48.8% stake in LBS. Its net tangible aster per share stood at rm1.14 as at end June 2012.
On its asset divestment that LBS is still finalizing the terms of the agreement with Jiuzhou technology Co Ltd.
It has been nearly six months since LBS signed a MOU with Jiuzhou Technology to sell the shareholding of a subsidiary which owns a golf course and a parcel of land in Zhuhai to Jiuzhou.
LBS may reap over rm600 million based on an indicative price of about rm654 million from cash equity deal, in which the group would also become a substantial shareholder of HK listed Jiuzhou Development Co Ltd which wholly owns Jiuzhou technology.
The asset divestment is a catalyst for LBS’ share price. However there is still no concrete agreement. Lim said that the deal is still progressing.
Astro: A subsidiary of Astro Malaysia Holdingsd Bhd has entered into a strategic collaboration with Google to extend the distribution of its Astro branded content to Malaysia and the rest of the world via Youtube.
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