IGB sells stake in UK asset for RM600mil


Corporate news Best11

KUALA LUMPUR: IGB Bhd has sold its entire 50% equity interest and shareholder debt in a freehold title in London to a unit of global real estate group Hines for £104.37mil (RM600mil).

In a filing with Bursa Malaysia, IGB said its units Verokey Sdn Bhd and Tower Ray Ltd each sold their 50% stakes in joint venture Black Pearl Ltd (BPL), which owns the land known as 18 Blackfriars Road, SE1, London, and transferred their shareholder debt to HNG Blackfriars 1 Ltd for £208.75mil (RM1.2bil).

It added that the transaction was completed via a combination of £120mil (RM689.9mil) cash paid to the sellers and the issue of loan notes with a principal value of £88.75mil (RM510.2mil), which will be redeemed 24 months after the completion of the transaction.

Effectively, Verokey’s portion of the sales consideration was £104.37mil or RM600mil (prior to certain deductions), comprising £60mil (RM344.96mil) in cash at completion and £44.375mil (RM255.12mil) 24 months after completion of the transaction.

“The completion payment is for part of the debt, which Black Pearl owed to Verokey.

“The second payment represents the balance of the debt, which BPL owed to Verokey and the value for Verokey’s 50% shareholding in Black Pearl but which has now been undertaken by the buyer and is evidenced by a loan note issued by the buyer which is secured on the property,” said IGB.

The group said it considers the transaction beneficial as it represents an opportunity to realise its investment in Black Pearl.

According to IGB, the proceeds will be used for the general working capital of the group.

It added that the transaction will result in an increase of about 21 sen in its net assets per share and earnings per share.

Trading in IGB’s shares was halted in the first hour of yesterday’s trading. It then resumed trading at 10am.

On Bursa Malaysia yesterday, the shares of IGB closed unchanged at RM1.98.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

IGB Bhd , global real estate group , Hines

   

Next In Business News

FTSE4Good Bursa Malaysia Index sees seven new inclusions
MYEG gets MOH's nod to deploy brefence go for covid-19 screening at airports
Kenanga the first Malaysian investment bank to join UN Global Compact
Tropicana Gardens Mall expects 67% tenancy rate by year-end
KTB unit secures contract worth RM26.44mil
Celcom accelerates capex of RM825mil for network improvements to meet rapid data growth
Astro posts RM106mil profit in 3Q, declares 1.5 sen dividend
KLCI back above 1,500-level on last-minute buying
Bursa Malaysia launches Bursa Digital Research to bridge information gap among investors
China's Kaisa kicks off US$12bil debt restructuring after missing pay date

Others Also Read


Vouchers