KUALA LUMPUR: Shareholders of WCT Holdings Bhd
have approved the proposed listing of Paradigm Real Estate Investment Trust (Paradigm REIT) on the Main Market of Bursa Malaysia Securities Bhd.
In a statement today, the construction and property group said the shareholders’ approval was obtained at its extraordinary general meeting (EGM) held today.
"As part of the proposed listing of Paradigm REIT, shareholders also approved the disposal of three retail properties -- Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya and Paradigm Mall Johor Bahru -- to Paradigm REIT for RM2.44 billion.
"The disposal consideration will be settled through the issuance of 1.6 billion units in Paradigm REIT at an issue price of RM1.00 per unit and a cash consideration of RM837 million,” WCT said.
It said shareholders also approved the proposed offering of 560 million units in Paradigm REIT.
"This includes a proposed retail offering of up to 254.66 million units for entitled shareholders of WCT, eligible directors and employees of the group and Paradigm REIT Management Sdn Bhd, the management company of Paradigm REIT, as well as the Malaysian public.
"From the proposed retail offering, 194.86 million units will be made available to entitled shareholders of WCT on the basis of one unit for every eight existing ordinary shares held, as of the close of business on an entitlement date to be determined and announced by WCT,” it said.
The company further said that the proposed offering also includes an institutional offering of at least 305.34 million units, with 200 million units reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry and at least 105.34 million units allocated to other institutional and selected investors.
"The proposed listing of Paradigm REIT is expected to strengthen WCT’s balance sheet by reducing borrowings, while providing investors with the opportunity to participate in a diversified portfolio of income-generating retail assets that offer stable cash distributions and long-term capital appreciation,” WCT said.
Group managing director Datuk Lee Tuck Fook said the company values the support from shareholders in approving the proposed listing of Paradigm REIT.
"This strategic initiative not only unlocks the value of our retail assets but also provide WCT with greater financial flexibility to pursue new growth opportunities.
"We are confident that Paradigm REIT will be a valuable addition to the Bursa Securities Main Market and deliver sustainable returns to our investors,” he said. - Bernama
