Sunway buys KFH's stake in South Quay project

Sunway South Quay

KUALA LUMPUR: Sunway Bhd is buying out Kuwait Finance House (M) Bhd’s (KFH) 20% stake in the 123-acre Sunway South Quay project in Bandar Sunway, Petaling Jaya, for RM136.65mil.

In addition, Sunway Lagoon Sdn Bhd (SLSB) - the Sunway Bhd unit that directly owns project developer Sunway South Quay Sdn Bhd (SSQ) - will repay RM73.35mil in cash to settle the musyarakah capital invested by KFH in SSQ.

Sunway told Bursa Malaysia that  SLSB had signed a share sale agreement with KFH to acquire KFH’s shares in SSQ, thus raising SLSB’s stake to 80%. (The other 20% is held by the Employees Provident Fund Board.)

“As a result (of the increase in stake), SLSB will have a higher ownership of Sunway South Quay, which is expected to contribute positively to the current and future earnings of the group,” said the property and construction group.

“The increase in the stake is an affirmation of Sunway’s confidence and commitment to the long term prospects and success of Sunway South Quay.”

The proposed share acquisition is expected to be completed in the last quarter of 2017.