KUALA LUMPUR: Iskandar Waterfront City Bhd (IWC) was actively traded today after announcing a merger plan with its major shareholder Iskandar Waterfront Holdings Sdn Bhd (IWH).
IWC gained as much as six per cent to RM1.72 in morning trade. As at 10.38am, it was traded at RM1.71 and was the third most active with a volume of 58.67 million shares.
IWH yesterday announced a one-for-one share swap scheme that also involves it taking over IWC's listing status upon completion of the share swap.
The merger plan also entails proposed asset acquisitions of RM4.1 billion from four parties, including IWC executive vice chairman Tan Sri Lim Kang Hoo and Kumpulan Prasarana Rakyat Johor Sdn Bhd, through the issuance of new shares priced at RM1.50, and new redeemable convertible preference shares (RCPS).
The asset acquisitions will enhance the merged entity's revalued net asset value to RM4.50 per share or RM30 billion, with 7,367 acres of land bank including IWH's interest in Bandar Malaysia project.
IWH holds an effective 36 per cent stake in Bandar Malaysia project.