Property developer GuocoLand (Malaysia) Berhad said on Tuesday that its parent, Singapore-based GuocoLand, will buy the remaining shares it does not own in the Malaysian unit, in a deal valuing the company at 770.5 million ringgit ($196.1 million).
The offer is priced at 1.10 ringgit per share to acquire nearly 35% of GuocoLand (Malaysia), and represents a 17.65% premium to its last close on January 30.
GuocoLand (Malaysia) said the offer was made by GLL Malaysia (GLLM), a unit of GuocoLand, with the Singapore-listed firm acting as the ultimate offeror.
GuocoLand is a part of the Guoco Group, which is in turn owned by the conglomerate Hong Leong Group. The Hong Leong group is controlled by Malaysian business tycoon Quek Leng Chan.
Under the proposed privatization, all shareholders of GuocoLand (Malaysia), except GLLM, will receive a capital repayment of 269.4 million ringgit, the company said in an exchange filing.
Following deal completion, GuocoLand (Malaysia) will become a unit of GLLM and subsequently be delisted from the Malaysian stock exchange.
The privatization is expected to be funded using excess funds in GuocoLand (Malaysia) and equity raising, if needed.
GuocoLand (Malaysia) has a market capitalization of 654.9 million ringgit, as per LSEG data.
