MARKET DEVELOPMENT
IOI Corp. To Spin Off Property Units in $4.22 Billion Deal
IOI Corp. To Spin Off Property Units in $4.22 Billion Deal
15/05/2013 (FOX Business) - Palm oil producer IOI Corp. Bhd. (1961.KU) Wednesday unveiled plans to demerge its property business--valued at over 12.6 billion ringgit ($4.22 billion)--and list it on the Malaysian stock exchange, in an effort to unlock shareholder value.
Malaysia's fourth-largest listed palm oil producer by acreage will inject its property development, real estate investments, land and other related businesses into IOI Properties Group Sdn. Bhd. in exchange for shares, IOI said in a statement to the Malaysian stock exchange. IOI will also distribute one share in the new unit for every three held by its shareholders.
The exercise is expected to be completed in the fourth quarter of 2013.
"Each entity will also be able to pursue specific dividend policies, growth strategies and investor relations strategies," it said in the statement.
Malaysia's fourth-largest listed palm oil producer by acreage will inject its property development, real estate investments, land and other related businesses into IOI Properties Group Sdn. Bhd. in exchange for shares, IOI said in a statement to the Malaysian stock exchange. IOI will also distribute one share in the new unit for every three held by its shareholders.
The exercise is expected to be completed in the fourth quarter of 2013.
"Each entity will also be able to pursue specific dividend policies, growth strategies and investor relations strategies," it said in the statement.