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Tuesday, May 15, 2012

Dijaya gets SC nod for RM850mil loan stocks issuance

KUALA LUMPUR: Dijaya Corporation Bhd has received the Securities Commission's approval to issue up to RM850mil nominal value of loan stocks.

It said on Tuesday the SC had vide its letter, dated May 11, approved the issuance of the redeemable convertible unsecured loan stocks (RCULs).

To recap, the RCULs are part of a corporate exercise wherein Dijaya had recently entered into agreements with several vendors for a proposed acquisition of 73 properties, comprising 49 parcels of land and 16 buildings, for RM949.9mil.

The proposed acquisition would be satisfied by cash totalling RM250mil, while the balance would be through the issuance of a 3% coupon RCULS, with a staggered conversion price range of RM1.30 to RM2.50 over a 10-year period.

Dijaya's major shareholder and group CEO Tan Sri Danny Tan had then said the amalgamation exercise was to consolidate all property development and investment activities into Dijaya, while avoiding businesses that are conflicting or competing with its interest.

The corporate exercise would see Dijaya's land bank increase to 870 acres and the group's total gross development value would increase to RM37bil.

In addition, the investment properties' net lettable areas for Dijaya would increase to 1.4 million sq ft. The additional properties were expected to generate a more stable and recurring income for Dijaya.

The parcels of land to be acquired were located within Kuala Lumpur, Johor Baru, Penang as well as in Kota Kinabalu and Sandakan.

By The Star

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