SP Setia wants remainder of KLEC

Posted on | July 26, 2011

By THE STAR

PETALING JAYA: SP Setia Bhd has proposed to acquire the remaining 40% stake in KL Eco City Sdn Bhd (KLEC) from Yayasan Gerakbakti Kebangsaan for RM75mil.

This will be satisfied via the issuance of 19.4 million new SP Setia shares at an issue price of RM3.87 per share.

Currently, KLEC is a 60%-owned subsidiary of SP Setia. Upon completion of the proposed acquisition, KLEC will become a wholly-owned subsidiary.

SP Setia, in a filing to Bursa Malaysia yesterday, said the purchase consideration of RM75mil was arrived at on a willing-buyer willing-seller basis and based on the equity valuation of KLEC using the discounted cash flow method of valuation after taking into account several factors, such as the approved development order for the stratified mixed residential and commercial development of the project.

- Malaysia Real Estate News

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