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Sunday, May 17, 2009

TA Enterprise to list property unit by October

The property business, TA Global Bhd, will have a paid-up capital of RM1.5 billion and RM2.4 billion in assets

TA ENTERPRISE Bhd (TAE), a property and financial services firm, is targeting to list its property business on the Main Market sometime during end-September or early October, its top official said.

The property business, known as TA Global Bhd, will be one of Malaysia's largest property firms with RM2.4 billion in assets, managing director and chief executive officer Datin Alicia Tiah said.

It will have an issued and paid-up capital of RM1.5 billion.

"If everything goes well, we can issue the prospectus in one month's time. It all depends on how soon we get approval from the Securities Commission," she told reporters at a briefing yesterday.
The move will essentially see TAE holding all of the group's financial services businesses and TA Global holding the property-related assets.

The reason for doing this is to unlock TAE's value for shareholders, Tiah said.

TAE's board also announced yesterday a first and final dividend of 4.5 per cent less tax for the fiscal year ended January 31 2009.

Holders of its TA Warrants 1999/2009 will be entitled to the dividend if they exercise the warrants into TAE shares before the warrants expire on June 24 this year.

As part of the proposed listing scheme, those who exercise the warrants before the expiry date will become TAE shareholders and also obtain TA Global shares and irredeemable convertible preference shares (ICPS).

TAE is proposing that shareholders get three TA Global shares and three ICPS for every five TAE shares held. This, however, is just an indicative ratio, Tiah said.

If all the warrants are converted, TAE will end up holding 38 per cent of TA Global, allowing it to equity account the business.

Among the properties that TA Global holds are development projects such as Damansara Idaman, Idaman Villa, Seri Suria and Nova Square.

Its property holdings include Menara TA One in Kuala Lumpur, Terasen Centre (Vancouver), Radisson Hotel (Sydney), Aava Whistler hotel (Whistler, Canada) and Westin Hotel (Melbourne).

Once the listing is done, the TAE group - one of the largest landbank owners in the vicinity of the Kuala Lumpur City Centre - may decide to set up retail, office and hospitality property trusts. This may be done with a third party, Tiah said.

On another front, Tiah said that plans for TAE to obtain an investment banking licence had been put on hold.

The group is cash-rich, with more than RM200 million currently.

By Business Times (by Adeline Paul Raj)

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