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Tuesday, September 27, 2011

Bandar Raya changes tack

BRDB says it will cease negotiations with Ambang Sehati which had offered to buy The Bangsar Shopping Centre, Menara BRDB, Capsquare Retail Centre and Permas Jusco Mall for RM914 million.

Kuala Lumpur: Exactly a week after announcing a deal to sell its key assets to a major shareholder, Bandar Raya Developments Bhd (BRDB) has decided to scrap the deal and call for a tender instead.

This was done after concerns were raised by stakeholders while "credible parties" had expressed interest in those assets, BRDB said in a statement to Bursa Malaysia yesterday.

But it did not say which stakeholder had voiced concerns and it also did not identify the parties keen on its properties.

BRDB said it will cease negotiations with Ambang Sehati Sdn Bhd which had offered to buy the four properties - The Bangsar Shopping Centre, Menara BRDB, Capsquare Retail Centre and Permas Jusco Mall for RM914 million.

It has also decided to sell the assets by way of tender after a meeting between the board and representatives of Ambang Sehati yesterday.

But Ambang Sehati, controlled by BRDB chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz, will be allowed to join the tender.

Ambang Sehati holds 18.8 per cent of BRDB.

"...the board has decided that it will appoint an independent international property valuation firm to manage the tender exercise," BRDB said.

On September 19, BRDB's chief executive officer Datuk Jagan Sabapathy said the board had not conducted an open tender because it may affect the smooth operations of the retail centres.

The meeting between Ambang Sehati and BRDB board also discussed "misconceptions, views and concerns of various stakeholders which have been raised" after the September 19 announcement.

They also talked about "expression of interest received from credible parties that have been communicated" since the announcement, BRDB said.

Analysts have said that the related party deal may face resistance from minority shareholders as BRDB was not using the bulk of the sale proceeds to replenish its land, which is what it needs.

BRDB had planned to distribute RM390 million to shareholders via a net cash dividend of 80 sen apiece, and use RM302 million to pare down debt.

By Business Times

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