FINANCIALDAILY

I WednesdayNovember24,20TO r,Ar.rrsr^,.i ffitll

Market talk: Sunway- SunC Lty next on the consolidation card

Voluntary request

frombothgroups fora suspension in trading

yesterday
byAishah Mustapha
FD@bizedge.com

solidations have been announced this month startingwithUEM Land Holdings Bhd's RMl.39 billion takeover of Sunrise Berhad to build the largest property conglomerate in the country. |ust yesterday, IJM Land Bhd and Malaysian Resources Cor-

government of Singapore, through the Government of Singapore Investment Corporation Pte Ltd is a substantial shareholder in SunCity

SunREIl the group isnowin a strong position to gear up for land acquisitions. The group received a net proceed of RM500 million, after settling its debt (about RMB00 million) j' said AmReseach in a note last month.

with

a 2l.2BVo stake.

KUALA LUMPUR: Following the onslaught of mergers and takeovers in the property development secto! market talk has it that next
on the consolidation card is Sunway Holdings Bhd and SunwayCityBhd (Suncity) after the voluntary request from both groups for a suspension in trading yesterday. Both ouffits are expected to make
rur announcement today, as the uading suspension is expected to end at

5pm today. So far, two major con-

Of the two, SunCity benefited recently from unlocking its assets' poration Bhd announced a proposed value through the listing of Sunway merger where a new company will Real Estate Investment Trust (SunREIT) on Bursa Malaysia in June this be formed. As of Monday, Sunway Hold- year. According to a recent note by ings' share price was atRM2.25, OSK Investment Bhd, SunREIT is gMng it a market capitalisation of 'the largest Malaysian REIT with an RMl.36 billion. Meanwhile, Sun- asset size of RM3.7 billion and a free wayCitywas suspended at RM4.49, float of around RMl.6 billion. Sunrepresenting a nine-year high. this way City is the largest shareholder translates into market capitalisation with a 37% stake. Post listing of Sunway REII Sunof RM2.ll billion. Currently, Sunway Group found- City's position has strengthened due erTan Sri Datuk Sri Dr |effrey Cheah to the netproceeds fromthe disposal Fook Ling is the largest substan- of its assets into the REIT. "With the successful listing of tial shareholder in both outfits. The

SunCity had recently expanded its landbank by acquiring 32.79ha of land for RM38.76 millioninPenang. The gross development value of the residential property project is estimated at RMB00 million. For 2QFY10 ended June 30, the group recorded RM262.3 million in revenue with net profit of RM71.7 million. Its net asset per share rose
considerably to RM5.21 from RM4.62 as of Dec 3l last year.

Meanwhile, for 2QFY10, Sunway Holdings reeorded revenue of RM509.2 million with a net profit of RM4B.6 million.