The shareholders of Sunway Holdings Berhad (“Sunway Holdings”) and Sunway City Berhad (“Sunway City”) approved the proposed disposal of their assets and liabilities to Sunway Berhad (“Sunway”) Wednesday, paving the way for the merger of the two companies.
"The larger combined Sunway provides an opportunity to re-articulate the “Sunway” brand and renew investors’ interest in Sunway shares,” said founder and chairman of Sunway Berhad Tan Sri Dr Jeffrey Cheah.
He said the enlarged Sunway will be in a better position to tap the equity and debt capital markets more cost-effectively as the group moves forward to bid for more business opportunities.
“In addition, we expect to reap synergistic benefits through operational, procurement and administrative efficiencies from the merger integration and economies of scale”, he added.
Sunway Berhad will be one of the largest property-construction players, with strong presence in the region.
The group will have a combined land bank of more than 2,200 acres with a total gross development value (“GDV”) of approximately RM25 billion, and a potential market capitalisation of over RM 3.5 billion, which will serve as a platform for continuous sustainable growth.
The sizeable landbank will provide Sunway with the opportunities to develop a variety of products catering to all segments, from the mass market to the very niche, luxury condominiums.
Focusing on a two-core business strategy, Sunway will seek to maximise its full potential by forging a deeper collaboration between the integrated property development and construction divisions.
The merged group will be helmed by Tan Sri Dr Jeffrey Cheah as its chairman, while Razman Hashim will be appointed as the deputy chairman of Sunway Berhad.
Leading the management and operations, Chew Chee Kin is expected to be appointed as the chief executive officer of Sunway Berhad.
Following Wednesday’s EGMs, Sunway Holdings and Sunway City will seek court approvals for a capital reduction and repayment exercise, after which the Sunway Berhad prospectus will be issued.
Sunway Berhad is targeted to list on Bursa Malaysia in the third quarter of 2011.
