Sunway Holdings + SunCity = Sunway Sdn Bhd

Sunway Holdings to be merged with SunCity.

MERGER is like a trend in Bursa Malaysia now. This is the third merger involving property related company. Before that, there are two merger between UEM Land and Sunrise, then followed by IJM Land and MRCB on Tuesday.

These third merger involving two company controlled by Tan Sri Jeffrey Cheah, there are Sunway Holdings Bhd, a construction company, and Sunway City Bhd (SunCity), a propery company and the deal worth RM4.5 billion.

Currently, Cheah is holding 46% of Sunway Holdings Bhd and 44% of SunCity. After the merger, he will hold about 44% of the new company.

Both company assets and liabilities will be acquired by a newly formed company, Sunway Sdn Bhd. After merger, Sunway Sdn Bhd will become the fourth largest property company by market size.

The new company is expected to be listed on Bursa Malaysia by middle of next year.

Sunway Sdn Bhd will be paying RM2.60 for each Sunway Holdings Bhd share and RM5.10
for each SunCity share.

Sunway will also pay RM900 million cash and Sunway shares with free warrants attached.
Both company will also undertake a capital repayment exercise to shareholders after the purchase.