A MERCHANT bank has been shortlisted to help arrange a share swap deal between Malaysian Resources Corp Bhd (MRCB) and Nusa Gapurna Development Sdn Bhd.
It is learnt that MRCB is studying the proposal by Nusa Gapurna to buy into the company in exchange for a 20 per cent stake in the property and infrastructure group.
This is not the first business deal between the two parties.
Nusa Gapurna previously sold its 60 per cent interest in Lot 348 Sentral to MRCB.
Lot 348 Sentral is part of MRCB’s KL Sentral transport hub in Brickfields here.
HwangDBS Research has said the potential merger would appear synergistic, given Nusa Gapurna’s attractive land bank and common shareholder in the Employees Provident Fund (EPF).
EPF has a 42.2 per cent interest in MRCB and 40 per cent in Nusa Gapurna.
The rest of Nusa Gapurna is owned by Gapurna Sdn Bhd, controlled by Datuk Mohd Salim Fateh Din and his associates.
Nusa Gapurna’s prime asset is the 16ha land behind PJ Hilton in Petaling Jaya, where the construction of PJ Sentral Garden City will start next year.
The project developer is PJ Sentral Development Sdn Bhd, a 70:30 joint venture between Nusa Gapurna and Selangor Development Corp (PKNS).
PKNS previously owned four hectares at the PJ Sentral project site.
It sold 3.44ha to Nusa Gapurna in 2006, and retained less than a hectare for its new headquarters.
Nusa Gapurna, in an email reply to Business Times, said the deal is still in proposal stage and is non-conclusive.
It also said that all parties concerned in the project had been assigned confidentiality.
Sources close to MRCB said it is interested in Nusa Gapurna because of the PJ Sentral project.
“If the deal goes through, it would be good for MRCB. PJ Sentral will be the next biggest thing for MRCB after KL Sentral,” a source said.
“MRCB’s prime land bank is running low and KL Sentral is at the maturity stage. The land swapping is timely as the group seeks to expand,” he added.
PJ Sentral will comprise nine blocks of office towers and residences, a hotel, and an office and retail podium.
The project is estimated to fetch more than RM5 billion in GDV over 15 years.
Picture by: skyscrapercity
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