Renong to be taken private via a share swap of one UEM World share of RM1 at RM1.60 for every four Renong shares held of 50 sen each. Renong will be renamed UEM Land and will control Prolink.
Reduction of the RM3.6bil Renong SPV (special purpose vehicle) bond to a manageable level that will be repaid over an extended period of 10 years at interest rate of 2% per annum from 9.6%. Annual interest savings expected to be RM278mil. As part of the settlement of the SPV bond, Renong will offset the amount payable to UEM with its 11.1% holding in Commerce Asset-Holdings Bhd, 44.4% in Park May Bhd, 48.4% in Faber Bhd, 3.2% in Camerlin Bhd and 46.8% in Time Engineering Bhd.
UEM World will buy equity stakes in several companies for a total of RM945mil via the issuance of 591 million new shares at RM1.60 each to UEM. It will buy 30.9% of Pharmaniaga for RM124mil, 49% of Intria Bhd for RM392mil, 100% of Kualiti Alam Holdings Bhd for RM180mil, 54% of Cement Industries Malaysia Bhd for RM170mil, and 62% of Kinta Kellas Plc for RM78mil.
Intria will be strengthened and will be renamed UEM Builders. It would be the group's flagship for engineering and construction – which will own stakes in UE Construction, Propel, Pati Sdn Bhd, Constain, Penang Bridge and Intria Bina. Intria will be 48%-55% owned by UEM World. Under Intria's plan, UE Construction will sell Kualiti Alam for RM83mil and buy the 50% remaining stake in Pati from UEM for RM55mil. Intria will also buy the entire 100% interest in UE Construction from UEM for RM156mil, to be settled by Intria assuming the inter-company loans of RM110mil currently owed by UEM to Propel and the issuance of RM45mil Intria shares at RM1 each.
UEM will offer 10% of the equity in UEM World to eligible employees of UEM Group to meet the 25% public spread requirement for UEM World under the KLSE listing rules. For latest Renong share prices and charts click here
