Nadayu open to re-listing

SUBANG JAYA: Nadayu Properties Bhd chairman and proprietor Hamidon Abdullah said he is open to the idea of re-listing the property developer when the time is right. The company is currently being privatised by its major shareholders, including Hamidon.  

“I daresay Nadayu is evolving for the better (by going private),” he said, adding that the Klang Valley and Penang-based firm was not putting the brakes on its growth despite the takeover.  

It had been reported that Nadayu was eyeing sales of RM300mil this year, with launches planned in Ampang, Cyberjaya and Penang island. Nadayu has unbilled sales of some RM250mil. 

“A re-listing is not impossible, but it is too far to tell right now. We will continue with our existing land bank and may add more,” he told reporters at a post-AGM briefing for EP Manufacturing Bhd (EPMB), of which Hamidon is also chairman. 

Nadayu was set to release its RM600mil gross development value (GDV) Nadayu 290 project in Bukit Gambir, Penang, a high-end serviced residence being developed by its 50% joint venture with Affin Islamic Bank Bhd, he said.  

Earthworks and tenders for building works were already in progress, Hamidon added.  

Nadayu said on Friday it had received a notice of takeover from ATIS IDR Ventures Sdn Bhd, Zhoujian Associates Sdn Bhd and persons acting in concert, who collectively owned 71% of the firm as at the date of the offer, via a selective capital reduction and repayment at RM1.39 per share. Hamidon owns 62% of Nadayu by virtue of his interest in ATIS IDR Ventures.  

The offer price was at an 8% premium to tightly-held Nadayu’s last closing price of RM1.29 prior to the announcement. 

Nadayu had told the stock exchange that its major shareholders intended to buy out the company because of the low trading liquidity in its shares. 

Separately, Nadayu announced it was selling its minority stakes in two firms to Tambun Indah Land Bhd in exchange for cash and shares worth RM112mil, which would make Nadayu a substantial shareholder of Tambun Indah with a 14.2% interest.  

The units to be sold were involved in the development of Pearl City in Seberang Prai South, Penang, which was also Tambun Indah’s flagship project and its largest to-date. 

Pearl City, located some 15 minutes from the Second Penang Bridge, has ongoing and future GDV of RM2.7bil and a total land area of 445ha. Its undeveloped GDV stood at RM1.9bil. The mixed development made up nearly half of Tambun Indah’s sales in 2012. 

Hamidon pointed out that although Nadayu was giving up direct exposure to Pearl City, where it has most of its land bank, the company would continue to ride on Tambun Indah as a shareholder. 

“We never said goodbye. Please write that Mr Hamidon and Mr Teh (Kiak Seng, Tambun Indah managing director and co-founder) enjoy a good working relationship. Mr Teh is a decent old man,” he said in jest. 

While Hamidon did not deny that a merger had been on the table for the two developers, he said the “time was not right”.  

“There’s a time and place for everything. The same goes for marriage,” he quipped. 

On EPMB, which Hamidon also founded, he said he was not disappointed by its scrapped deal to buy Maju Expressway (MEX). “We look at it from a candid light. You never know, it may come back to us,” he explained. 

The auto parts maker had announced in March last year a proposal to acquire the highway that links Kuala Lumpur and Putrajaya for an enterprise value of RM1.7bil, inclusive of RM550mil in debt.  

The concession for MEX is held by companies linked to tycoon Tan Sri Abu Sahid Mohamed. The transaction was aborted in May after approvals could not be obtained from the Government.  

Johan Hamidon, EPMB executive director and Hamidon’s son, dismissed talk that the deal had been drawn up to manipulate share prices.  

“There was genuine interest on our side. It just didn’t play out the way we planned,” he said.  

Hamidon had said at EPMB’s AGM last year that the buyout, if successful, would add RM100mil to the company’s annual turnover.  

EPMB bore much criticism for the deal, which easily eclipsed its market capitalisation of RM126mil, even though it said it had the necessary funding vehicles in place.