SP Setia to acquire I&P Group for up to RM3.75b

KUALA LUMPUR: SP Setia Bhd is acquiring the entire equity interest in I&P Group Sdn Bhd at an indicative price range of RM3.5 billion to RM3.75 billion.

Post acquisition, the enlarged group will have close to 10,000 acres of land with a combined gross development value of about RM122 billion. SP Setia currently has over 5,000 acres while I&P has over 4,000 acres.

SP Setia president and CEO Datuk Khor Chap Jen said the proposed acquisition would fast track its expansion plan and provide new markets such as Kinrara and South of Klang where I&P has presence.

SP Setia, Permodalan Nasional Bhd (PNB) and Amanahraya Trustees Bhd entered into a non-binding memorandum of intent today to commence negotiations on the proposed acquisition.

SP Setia, via its wholly owned subsidiary KL East Sdn Bhd, also signed a conditional sale and purchase agreement (SPA) with Seriemas Development Sdn Bhd, a subsidiary of PNB Development Sdn Bhd.

The SPA is for the acquisition of 342.5 acres of land in Bangi known as Bangi Estate at a purchase price of RM447.58 million or RM30 psf as well as profit sharing of up to RM3 psf.