Ideal United Bintang to raise up to RM200.47m, buy three property firms

PETALING JAYA: Ideal United Bintang International Bhd (IUB) yesterday announced a slew of corporate exercises involving the acquisition of three property firms for RM353.08 million, a private placement to raise up to RM200.47 million and the subdivision of its existing one share to two shares.
In a filing with the stock exchange, the group said it had entered into a sale and purchase agreement with executive chairman Tan Sri Ooi Kee Liang and his wife Puan Sri Phor Li Wei, who is also the executive director, in a related party transaction to acquire Modular Platinum Sdn Bhd, Ideal Homes Properties Sdn Bhd and Premium Flame Development Sdn Bhd for RM202.03 million, RM117.91 million and RM33.15 million, respectively.
IUB said the proposed acquisition represents an opportunity for the group to bolster its portfolio of development projects and enhance its profile as a property developer by participating in more projects which are profitable.
The private placement, which entails the issuance of up to 393.08 million new shares representing up to 30% of its issued shares, is conditional upon the proposed acquisition.
Based on an indicative issue price of RM1.02 per placement share, the private placement is expected to raise gross proceeds of up to RM200.5 million, which will be used to fund the Imperial Grande, Amarene and Mori as well as Imperial Ville projects.
The private placement is also aimed at mitigating the non-compliance of the minimum public spread.
Meanwhile, the share split is expected to improve the liquidity of its shares with a higher share base.
Upon completion of the share split, IUB's resultant issued share capital will be RM463.56 million comprising 927.11 million subdivided shares.