KUALA LUMPUR: Property developer UEM Sunrise Bhd, through unit UEM Land Bhd, is selling a 20% stake in Aura Muhibah Sdn Bhd (AMSB) to Kuala Lumpur Kepong Bhd (KLK) for RM182.6mil to reduce its investment and exposure in Johor as part of its land portfolio rebalancing strategy.
Following the disposal of the shares and redeemable non-convertible non-cumulative preference shares (RPS), AMSB will cease to be a subsidiary of UEM Land. UEM Land’s stake will fall to 40% while KLK’s stake, held through wholly-owned subsidiary KLK Land Sdn Bhd, will increase to 60%.
In a filing with Bursa Malaysia, UEM Sunrise said in addition to the share sale agreement, UEM Land also signed a fresh shareholders’ agreement with KLK Land and AMSB in relation to the proposed joint development of 1,011.7 ha in Senai, Johor. This was because AMSB will no longer be UEM Land’s subsidiary.
The master developer of Iskandar Puteri in Johor said starting from the part disposal of the Desaru lands in August 2019, the group was now considering to reduce its investment in Kulai. “(As AMSB no longer being a subsidiary, ) this will allow the group to focus its Johor’s resources on Iskandar Puteri which today still has a remaining landbank of more than 5,000 acres, ” UEM Sunrise said. — Bernama
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