Reverse takeover by Jubilee will turn it into property developer

Published on Oct 17, 2013

By Rachel Scully

A LISTED firm that makes plastic moulds is undertaking a reverse takeover that will transform it into a property developer with interests in Iskandar.

Jubilee Industries Holdings said yesterday that it plans to acquire a 60 per cent stake in a development project in Medini Iskandar largely owned by a unit of Jewelstone Properties.

It will pay RM150 million (S$60 million under an agreed exchange rate) for the stake. The deal includes a one-off profit guarantee from Jewelstone of RM180 million.

The Jewelstone unit owns 60 per cent of special purpose vehicle Viridea Lakeside, which is acquiring a project known as Viridea @ Medini Lakeside.

This mixed development will have serviced apartments, retail units as well as Soho (small office, home office) apartments.

Viridea "will be developing six plots of land which is expected to yield a combined gross floor area of 1.07 million sq ft", said a Jubilee statement yesterday.

This puts the estimated gross development value at approximately RM800 million with profit before tax estimated at RM300 million. From this profit, RM180 million "shall be declared in favour of Jubilee" as stated in the non-binding memorandum of understanding Jubilee has signed with Jewelstone.

Jubilee, which is listed on the Catalist board, proposes to fund the acquisition by issuing 272.7 million new shares at 22 cents apiece to Jewelstone - about 53.7 per cent of its enlarged share capital of 507.4 million shares.

A portion of the shares will be released to Jewelstone once the profit guarantee has been fulfilled.

Jewelstone will be controlled by Singapore businessman Dennis Ng Yew Khim, the son of Mr Ng Eng Tee, the deputy chairman and executive director of developer United Malayan Land.

Mr Toh Soon Huat, Jubilee's sole executive director and second largest shareholder, said yesterday: "The reverse takeover, if completed, will transform Jubilee into a developer with a foothold in one of the most exciting development zones in Malaysia."

Jubilee shares were last traded at 22 cents last Thursday before it called for a trading halt.

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