Published: Friday February 8, 2013 MYT 7:26:00 PM
MRCB-Gapurna in RM729m corporate exercise
KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) and Gapurna Sdn Bhd have teamed up in a RM729mil corporate exercise which would see Gapurna injecting 33 acres of land in the Klang Valley valued at RM459mil into MRCB.
In a joint statement issued on Friday, MRCB said it had signed several agreements with companies related to Gapurna Sdn Bhd for total purchase consideration of RM729mil.
This would comprise of RM111mil cash payment and issuance of 398.709 million MRCB shares with attached 113.971 million free warrants on the basis of two new MRCB warrants for every 7 new MRCB shares held.
MRCB also inked conditional share sale agreements with Nusa Gapurna Development Sdn Bhd (NGD) to acquire several of its subsidiaries, which owns the 33 acres of land in the Klang Valley for RM459mil, and Gapurna's related companies Gelanggang Harapan Construction Sdn Bhd (GHC) for RM250mil and Gapurna Global Solution Sdn Bhd (GGS) for RM20mil.
Gapurna and the Employees Provident Fund Board own 60% and 40% of NGD. EPF also owns 42.2% of MRCB.
MRCB also entered into a first rights of refusal cum call option agreement with NGD to acquire all the remaining land and any future development lands secured by NGD over a period of three years and a RM50mil profits guarantee agreement with Gapurna for GHC.
The new MRCB shares is priced at RM1.55 per share, a premium of 25% above the last closing price of MRCB at RM1.24 on Thursday and a premium of 9% to 21% above the five days and one month weighted average price (VWAP) of RM1.28 and RM1.42 respectively up to Thursday.