MALAYSIAN Resources Corp Bhd (MRCB) is likely to raise its stake in property developr UDA Holdings Bhd to turn the associate company into a subsidiary, said managing director and chief executive officer Shahril Ridza Ridzuan.
Last month, MRCB aborted its earlier proposal to buy the remaining 75.07% stake in UDA that it does not already own due to several unresolved issues. Shahril declined to elaborate but reiterated that the group was interested to acquire the property development company.
Under regulations for mergers and takeover, MRCB is not allowed to make the same takeover proposal over a period of 12 months after withdrawal.
“Khazanah Nasional Bhd and us are still looking at how to resolve the issue (that prevented the earlier takeover attempt). It’s going to be a different deal,” Shahril told StarBiz after the company AGM in Petaling Jaya yesterday.
The deal, he said, would be a win-win situation for both companies. “UDA has valuable assets and we have our construction expertise to bring into the group. If the deal goes through, we will be able to create efficiency and value to the group,” he added.
MRCB currently holds 24.9% interest in UDA via its wholly owned unit Landas Utama Sdn Bhd. The Government’s investment arm, Khazanah, is UDA’s largest shareholder with 50% stake.
UDA owns some 1,000 acres of land, the bulk of which is located in the Klang Valley as well as Johor and Penang. Among the prime commercial properties it owns are BB Plaza, Hentian Puduraya, Sinar Kota, Pertama Complex and Plaza Warisan.
Shahril said MRCB’s major property project, Kuala Lumpur Sentral, was on track for completion by 2012. The group’s other property development assets include the 2,000ha Bandar Seri Iskandar, a township development in Perak, and Taman Kajang Utama in Kajang.
For first quarter ended March 31, MRCB posted a pre-tax loss of RM15.9mil compared with a profit of RM13.6mil a year ago. Sales were marginally higher at RM22mil against RM19.1mil previously. The company attributed the loss to the impairment losses on marketable securities.
Did you find this article insightful?