Conglomerate YTL Corp Bhd intends to house all its real estate development assets and projects under its property development arm YTL Land and Development Bhd.
Together with three other wholly owned subsidiaries, YTL Corp entered into 10 agreements and settlement of outstanding intercompany balances worth RM476.05 million with YTL Land, where the conglomerate owns a 60.72 percent stake, said YTL Corp.
The agreements would see YTL Corp selling its property assets and projects in Singapore and Malaysia to YTL Land.
The disposal consideration and settlement of the outstanding intercompany balances will be satisfied by YTL Land’s issuance of RM253.03 million nominal value of 10-year 3 percent to 6 percent irredeemable convertible unsecured loan stocks (Iculs) at 100 percent of nominal value of RM0.50 per Iculs and RM223.02 in cash, it said in a filing.
In addition, YTL Land would undertake a renounceable rights issue of Iculs to raise funds to partially satisfy the cash portion, while YTL Corp would subscribe fully for its entitlement under the proposed rights issue of lculs.
Under the share sale agreements, YTL Corp would sell its 100 percent stakes in Arah Asas Sdn Bhd, Pinnacle Trend Sdn Bhd, Satria Sewira Sdn and Bhd Trend Acres Sdn Bhd, as well as its 70 percent stake in Emerald Hectares Sdn Bhd to YTL Land.
YTL Corp’s wholly owned units YTL Singapore Pte Ltd and Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd also entered into share sale agreements with YTL Land, which had also entered into a land deal with YTL Land Sdn Bhd.
The move is part of the ongoing strategy of YTL Corp for its principal business arms to own and run the relevant assets in their business spheres to leverage on operational and developmental efficiencies and synergies, said YTL Corp.
The disposals aim to unlock the value of the investments of YTL Corp in its property units and projects.