Translate This Page

Wednesday, November 16, 2011

Will focus shift to Malton? (OSK)

The listing of Pavilion REIT, slated for 6 Dec, will result in the realisation of net worth of approximately RM1.6bn for controlling shareholder, Datuk Desmond Lim Siew Choon and his spouse Datin Cindy Tan Kewi Yong. Attention is shifting to Lim’s low profile, undervalued property arm Malton, as a possible privatisation candidate, with the couple now flush with cash. Upon listing, Lim and Tan own a collective 37.6% stake in Pavilion REIT worth RM992.6m. In addition, the couple will also receive an estimated RM702.7m in cash from the exercise, which involves the injection of properties into the REIT in return for cash and REIT units. Meanwhile, both are holding 37.9% stake in Malton and the cost of buying out the remaining 62.1% stake is estimated at RM181.7m, based on yesterday’s closing price. This is equivalent to just a quarter of the cash proceeds they will receive from the Pavilion REIT IPO. (Financial Daily)

No comments: