KUALA LUMPUR (Aug 14): Sunway Bhd is taking over its partner Iskandar Assets Sdn Bhd's (IASB) 40% stake in their joint venture (JV) company being Sunway Iskandar Development Sdn Bhd (SIDSB) that was set up to develop a mixed project — Sunway City Iskandar Puteri — on a plot of land worth RM412.73 million.

Sunway through its wholly-owned unit Sunway City Sdn Bhd (SunCity) is buying over the stake from IASB, which is a wholly owned unit of Iskandar Investment Bhd — which is in turn 60% held by Khazanah Nasional Bhd — for RM770,450.

It will also subscribe for 84.23 million non-convertible non-cumulative redeemable preference shares (NCRPS) in the JVco for RM84.23 million, thereafter the JVCo, SIDSB, will redeem 76.27 million NCRPS held by IASB in the share capital of SIDSB at a redemption price of RM84.23 million.

This brings the total acquisition price to RM85 million.

Consequent to the completion of the acquisition and redemption of NCRPS, SIDSB will become a wholly-owned subsidiary of SunCity, it added.

Sunway said that the proposed acquisition and proposed subscription will be satisfied by cash from internally generated funds. 

“The proposed acquisition and proposed subscription bode well with the development strategy of both SunCity and IASB. 

“From Sunway’s perspective, SunCity will take on a full 100% stake in SIDSB as Sunway is confident with the prospect of developing Sunway City Iskandar Puteri (in Johor) into Sunway’s next flagship township. 

"Barring any unforeseen circumstances, the proposed acquisition and proposed subscription are expected to be completed by the third quarter of 2023," it noted. 

Shares in Sunway finished unchanged at RM1.83 on Monday, giving the group a market capitalisation of RM9.15 billion. 

Note: This story has been corrected to say that the total acquisition price is RM85 million and not RM169 million as reported earlier. The error is regretted.