by ASILA JALIL / photo credit: maa.mon
MAA Group Bhd (MAAG) has entered into an unconditional share purchase and sale agreement with Ithmaar Bank BSC to acquire 132.15 million shares or 57.78% stake in Turiya Bhd for 23.79 million RM or 18 sen per share.
Once the acquisition is finalized, MAAG will file a mandatory takeover bid to acquire any remaining Turiya shares that it does not own at a cash price of 18 sen per share.
The bid price is much lower than Turiya’s last negotiated price of 23.5 sen.
As of August 3, 2020, the issued and paid up capital of Turiya amounted to RM 280.78 million.
For its fiscal year ended March 31, 2020, the group’s after-tax profit was RM 440.84 million, while its net assets were RM 120.67 million.
Turiya Group, formerly Sitt Tatt Sdn Bhd, is involved in the office land leasing and property management business with an investment property known as Wisma Chase Perdana (WCP), which is an office building in 12 story freehold property located along Changkat Semantan, Bukit Damansara in Kuala Lumpur (KL).
WCP has a total net leasable area of 245,238 square feet and provides the group with sustainable long-term rental income.
As evidenced by Turiya’s latest unaudited consolidated financial statements for the year ended December 31, 2020, WCP comprises 84.8% of its total assets of RM 168.9 million.
In its submission to Bursa Malaysia, MAAG stated that the acquisition is a strategic investment for the group as it is an opportunity for the group to acquire a majority stake in Turiya at an attractive price, the price of he acquisition of Turiya’s share of 18 sen per share is lower than the net assets per share of the Turiya group of 53 sen as of December 31, 2020.
The acquisition also allows MAAG to own WCP, which is located in an upscale neighborhood at an attractive valuation, as well as allowing the group to have a steady stream of rental income and profits.
“Given that WCP is strategically located in Damansara Heights with good accessibility and located among some of the major commercial locations such as Bangsar, Sri Hartamas and Mount Kiara, the board expects WCP to benefit from the trend. potential for companies looking to relocate from KL’s central business district to decentralized areas such as Damansara Heights which offer similar office space at relatively lower rental rates, ”he noted.
After the proposed acquisition, MAAG intends to work closely with Turiya to pursue active initiatives aimed at enhancing the value of WCP and generating a sustainable and steady flow of rental income from said property through, among others , renovation and refurbishment, office remodeling (if necessary) and the recruitment of quality tenants.
MAAG intends to maintain Turiya’s listing status on the main market of Bursa Malaysia Securities Bhd.
MAAG is rich in cash following the sale of its 75% takaful business to Zurich Insurance Co Ltd for RM 364.4 million in cash in 2016.
The company used part of the money to buy HELP College of Arts and Technology Sdn Bhd, Scholastic IB International Sdn Bhd and a stake in Altech Chemicals Ltd.