IOI Corp falls to lowest since Sept last year
Written by Joseph Chin of theedgemalaysia.com
Monday, 18 April 2011 16:13
KUALA LUMPUR: Shares of IOI Corp fell to a low of RM5.28 in late afternoon trade on Monday, April 18, which was the lowest since Sept 1, 2010.
At 3.50pm, it was down 13 sen to RM5.28 with 8.40 million shares done.
The FBM KLCI rose 5.62 points to 1,527.56. Turnover was 809.16 million shares valued at RM1.07 billion. There were 414 gainers, 266 losers and 272 stocks unchanged.
The most recent development involving IOI was its acquisition of a 49.9% interest in the South Beach project in Singapore through a restructuring exercise.
To recap, recently IOI bought a 33.3% stake in the project from Elad Group Singapore Pte Ltd for S$174 million (RM417 million).
Subsequently, IOI had injected the 33.3% stake into Scottsdale PROPERTIES [] Pte Ltd. Scottsdale Properties now owns 100% of South Beach. IOI then paid S$115 million (RM276 million) for a 49.9% stake in Scottsdale and will advance S$28 million as a shareholder’s loan. The other 50.1% shareholder of South Beach is City Developments Ltd (CDL).
AmResearch said: “In total, we estimate that IOI paid S$317 million (RM761 million) for a 49.9% stake in the South Beach project. Previous reports had speculated that IOI would pay between S$170 million and S$175 million for a 33.3% stake in South Beach."
The research report said IOI and CDL may be required to further contribute equity of S$500million each to redeem existing mezzanine notes of the project, working capital and part-finance the CONSTRUCTION [] of South Beach. IOI’s investment in the South Beach project has so far cost S$817 million (RM2 billion).
“We believe that IOI would be raising funds to finance its investment in South Beach. The group’s net gearing stood at 8% as at end-June 2010. Net debt amounted RM876million while gross cash and short-term investments totalled RM3.9 billion,” AmResearch said.
Written by Joseph Chin of theedgemalaysia.com
Monday, 18 April 2011 16:13
KUALA LUMPUR: Shares of IOI Corp fell to a low of RM5.28 in late afternoon trade on Monday, April 18, which was the lowest since Sept 1, 2010.
At 3.50pm, it was down 13 sen to RM5.28 with 8.40 million shares done.
The FBM KLCI rose 5.62 points to 1,527.56. Turnover was 809.16 million shares valued at RM1.07 billion. There were 414 gainers, 266 losers and 272 stocks unchanged.
The most recent development involving IOI was its acquisition of a 49.9% interest in the South Beach project in Singapore through a restructuring exercise.
To recap, recently IOI bought a 33.3% stake in the project from Elad Group Singapore Pte Ltd for S$174 million (RM417 million).
Subsequently, IOI had injected the 33.3% stake into Scottsdale PROPERTIES [] Pte Ltd. Scottsdale Properties now owns 100% of South Beach. IOI then paid S$115 million (RM276 million) for a 49.9% stake in Scottsdale and will advance S$28 million as a shareholder’s loan. The other 50.1% shareholder of South Beach is City Developments Ltd (CDL).
AmResearch said: “In total, we estimate that IOI paid S$317 million (RM761 million) for a 49.9% stake in the South Beach project. Previous reports had speculated that IOI would pay between S$170 million and S$175 million for a 33.3% stake in South Beach."
The research report said IOI and CDL may be required to further contribute equity of S$500million each to redeem existing mezzanine notes of the project, working capital and part-finance the CONSTRUCTION [] of South Beach. IOI’s investment in the South Beach project has so far cost S$817 million (RM2 billion).
“We believe that IOI would be raising funds to finance its investment in South Beach. The group’s net gearing stood at 8% as at end-June 2010. Net debt amounted RM876million while gross cash and short-term investments totalled RM3.9 billion,” AmResearch said.
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