Malaysia Digest: IGB To List REIT By Q4; My E.G. To Buy 10% In S5 Holdings

Malaysian property developer IGB Bhd said the listing of its commercial assets is expected to be completed by the fourth quarter while My E.G. plans to buy a 10 per cent stake in S5 Holdings Inc, an immigration security firm.

IGB to complete listing of commercial REIT by Q4

Malaysia-listed property developer IGB Bhd said Thursday its plan to list its commercial assets in a new real estate investment trust (REIT) is expected to be completed by the fourth quarter this year.

IGB has proposed to inject 10 office buildings worth RM3.16 billion ($743.66 million), owned by its subsidiaries and joint ventures, into the so-called IGB Commercial REIT, it said in a filing. The disposal consideration of these buildings will be satisfied via the proposed issuance of 2.3 billion undivided interest in IGB Commercial REIT and the balance via cash, the filing said.

Eight out of the 10 buildings are located in Mid Valley City, a mixed development project in Kuala Lumpur.

IGB also said it proposed to offer up to about 1.227 billion units via an initial public offering, comprising a proposed restricted offering of up to approximately 945 million units to the IGB’s shareholders and a proposed offering of at least 282 million units to institutional investors and selected investors.

IGB said the proposed disposals and proposed restricted offer for sale (ROFS) will raise up to RM1.23 billion and the company plans to use the proceeds to reduce its borrowings and for potential investment opportunities, among others. IGB earlier announced its plan to establish a new REIT in November last year. 

My E.G. to buy 10% stake in S5 Holdings

Malaysia’s My E.G. Services, an electronic government services provider, on Wednesday said its unit MY E.G. Capital, has entered into a share sale agreement with Merrington Assets Ltd (MAL) to acquire 118 million shares or 10% stake in S5 Holdings Inc for RM90 million ($21.19 million) in a cash-and-stock deal.

My E.G will pay RM75 million in cash and the balance sum of RM15 million will be satisfied by the allotment and issuance of new My E.G shares.

My E.G. said S5’s solutions and systems are complementary to the company’s existing and prospective service offerings, especially within the immigration space in Malaysia.

Malaysian pension fund Employees Provident Fund Board and retirement fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP) are among the substantial shareholders of My E.G.