Hicom Megah to sell stake in Corwin

PETALING JAYA: DRB-Hicom Bhd’s indirect subsidiary Hicom Megah Sdn Bhd and minority shareholders of Corwin Holding Pte Ltd (Corwin) have proposed to dispose of the entire 100% stake in Corwin, which owns The Verge shopping mall in Singapore.
Singapore-based Corwin owns and leases real estate properties.
In a filing with Bursa Malaysia yesterday, DRB-Hicom said Hicom Megah and Corwin’s minority shareholders, who own the remaining 10% share, has entered into a non-binding term sheet with Lum Chang Holdings Ltd (LCH) for the proposed transaction.
DRB-Hicom said the proposed disposal would allow the group to unlock the value of its investment in Corwin based on the prevailing market value of the property, which is currently encumbered.
Upon signing of the term sheet, DRB-Hicom said, LCH will begin due diligence on Corwin as well as start negotiations with the vendors to agree and finalise the terms of the binding definitive agreements for the proposed transaction within four weeks or other date to be mutually agreed.
DRB-Hicom said it will make further announcements to the stock exchange in a timely manner in accordance with the Bursa Securities Listing Requirements, when necessary.
LCH, which is listed on the Singapore Exchange, is involved in construction, project management, property development for sale and property investment.
DRB-Hicom closed unchanged at RM1.02 yesterday, with 15.4 million shares changing hands.