Kuchai Development Berhad has entered into a conditional master sale and purchase agreement with Sg Bagan to dispose of substantially all the assets and liabilities at a disposal consideration of RM275,470,203.
The sale is to be satisfied entirely via the issuance of 27,519,500 new Sg Bagan Shares at an issue price of RM10.01 per Sg Bagan Share. In conjunction with the deal company also intends to undertake the Proposed Distribution to distribute all Sg Bagan Shares held by KDB to entitled shareholders by way of a proposed capital reduction and repayment.
The Proposed Disposal is regarded as a related party transaction
The proposed disposal is for KDB and Sg Bagan to consolidate and merge the investments into Sg Bagan. KDB is principally involved in investment holding and rental of property. KDB and Sg Bagan, both controlled by a common major shareholder, Kted on the Singapore Stock Exchange, debt instruments (bonds and redeemable preference shares outside Malaysia) and investment properties.
KDB also intends to undertake the distribution upon receipt of the consideration shares, this it said provides the entitled shareholders with an opportunity to participate in the prospects and future growth of the enlarged Sg Bagan who will own
the assets and liabilities in KDB.
