Bintai Kinden proposes to acquire Optimal Property Management

PETALING JAYA: Bintai Kinden Corp Bhd is proposing to buy Optimal Property Management Sdn Bhd (OPM) for RM15 million and diversify into the concession arrangements business in an all-share deal.
In a filing with Bursa Malaysia yesterday, the company said it entered into a conditional share sale agreement with Nusankota Development Sdn Bhd, Haryati Zaharuddin and Amirul Arifin Sopiee Md Noordin for the transaction, which will be satisfied via an issuance and allotment of 75 million new Bintai Kinden shares at an issue price of 20 sen each.
OPM is a special purpose vehicle involved principally in property management that holds a 25-year RM121 million concession to design, construct, complete, operate and maintain the entire in-campus accommodation for Kolej Teknologi Islam Melaka (KUIM). OPM had in January this year appointed Bintai Kinden as its turnkey contractor for the same project.
OPM will undertake the maintenance of all the facilities and has the right to demand, collect and retain mutually agreed charges throughout the concession period.
“The proposed acquisition will enable the company to participate and be entitled to the future recurring income streams from the concession arrangements business that is the provision of management and maintenance services to KUIM over the tenure of the concession,” Bintai Kinden said.
The purchase consideration takes into account the net liabilities of OPM, future prospects of OPM and valuation range of the concession between RM24.5 million and RM26.7 million as ascribed by Russ Ooi & Associates.
The proposed deal is expected to be completed by the first half of 2017, subject to approvals from Bursa Securities and Bintai Kinden shareholders. KAF Investment Bank Bhd is the adviser for the transaction.