Why UEM Land acquires Sunrise?
About the offer… On 4 th November 2010, UEM Land Bhd plans to take control of Sunrise Bhd in a RM 1.4bil deal. Shareholders of Sunrise are given 2 options: UEM Land to acquire Sunrise shares at RM2.80 via the issuance of UEM Land shares at RM2.10 each, or Sunrise shareholders get 2.80 redeemable convertible preference shares ( RCPS ) for every one offer share. Why Sunrise? Reasons given by UEM Land were: Leveraging on Sunrise Group's robust financial strengths and prospects Accelerate UEM Land's own business expansion To secure new development projects And, to create another Capital Land (Singapore state-own company which is one of Asia's biggest property developers) After the deal is completed… UEM Group's shareholding in UEM Land will fall to around 60% Major shareholder of Sunrise will have stake of around 9% in UEM Land Sunrise will be delisted from Bursa Malaysia But, the brand name of Sunrise will be retained Creating an enlarged group with combine...