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Friday, September 5, 2008

TA Enterprise to list property division on main board

PETALING JAYA: TA Enterprise Bhd (TAE) has proposed to list its property division under TA Global Bhd on the Bursa Malaysia main board.

“The proposed reorganisation and listing would unlock the value of its strategically located properties and realise the market value of the said properties,’’ TAE said in a statement yesterday.

The exercise was expected to be completed by the end of the year. TAE said it expected to recognise a capital gain of about RM924.9mil from the exercise.

The proposed exercise will enable the company to streamline its operation into two separate core businesses, in financial services and properties division.

Under the plan, TAE will inject its property assets held under TA Properties Sdn Bhd, Sanjung Padu Sdn Bhd, Wales House Trust and Taman Duta Residences in exchange for shares in TA Global worth a total of RM1.75bil.

Subsequently, TA Global will undertake a 10-for-27 rights issue exercise and a public issue of about 350 million new shares at an indicative initial public offer (IPO) price of 50 sen per share.

It also proposed an offer for sale of 875 million shares in TA Global to bumiputra investors.

TAE is also proposing a capital distribution to its shareholders that will cut its share capital, share premium reserve and retained earnings. As a result, TAE’s par value would be reduced to 50 sen from RM1 currently.

Upon completion of the proposed capital distribution and listing, TAE will hold at least 24.3% equity interest in TA Global.

“The total proceeds from the proposals, via offer for sale, will amount to RM437.5mil,’’ TAE said.

TAE will utilise a portion of the proceeds to apply for an investment banking licence and the remaining for future working capital of the group.

In a separate announcement, TAE said its unit TA Global had entered into a sale and purchase agreement to acquire Coast Whistler Hotel in British Columbia for C$33mil (RM107mil).

The 193-room hotel is located 125km north of Vancouver and is the group’s maiden foray into Canada hospitality industry.

“The proposed cost of renovations to upgrade the hotel shall be borne entirely by TA Global and is estimated to amount C$30mil (RM97mil),’’ it said.

By The Star

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