Sunway to take full control of project by buying out EPF’s stake

Sunway South Quay

KUALA LUMPUR: Sunway Bhd is also buying out the Employees Provident Fund Board’s (EPF) 20% stake in the Sunway South Quay project in Bandar Sunway, Selangor, after signing a similar agreement to buy Kuwait Finance House (M) Bhd’s (KFH) 20% stake earlier this month.

Sunway South Quay Sdn Bhd (SSQ), the project developer owned by Sunway Bhd’s indirect unit Sunway Lagoon Sdn Bhd (SLSB), will end up as SLSB’s wholly-owned subsidiary after the two purchases are completed.

In a filing with Bursa Malaysia, Sunway said SLSB had entered into an agreement with the EPF to acquire the fund’s entire 50,000 shares in SSQ on Tuesday.

Like the agreement with KFH, SLSB is buying the EPF’s 20% stake for RM136.65mil and repay, on SSQ’s behalf, RM73.35mil to settle the fund’s musyarakah capital investment in SSQ.

Sunway said SLSB’s acquisitions of KFH’s and EPF’s stakes in SSQ were both expected to be completed by Dec 15 or other dates agreed on by the parties involved.

“With SSQ as a wholly-owned subsidiary, SLSB will have full ownership of the development and its developable landbank, and will have control over the timing of future launches and product mix to maximise the benefits to Sunway from the future development of Sunway South Quay,” it said.

“The proposed acquisitions will also contribute to the profitability of the group as SSQ is already a profitable ongoing concern.”