By FARA AISYAH / Pic By ISMAIL CHE RUS
LBS Bina Group Bhd’s wholly owned subsidiary Lamdeal Investments Ltd and NWP Holdings Bhd have entered into a heads of agreement (HoA) to jointly undertake a 264-acre (106.84ha) development in China.
The project involves the transformation of the Zhuhai International Circuit (ZIC), in Guangdong Province, into a mixed commercial development.
Under the partnership and to fund the multibillion-ringgit project, LBS Bina plans to subscribe 1.1 billion NWP shares, representing 73.7% of the enlarged NWP’s issued shares for RM93.5 million cash, or 8.5 sen per share.
Proceeds from the share transaction will be used to part fund the proposed development, the company said in a statement to Bursa Malaysia.
LBS Bina said the 8.5 sen per share subscription price was derived from a willing buyer, willing seller basis after taking into account NWP’s latest announced unaudited net tangible assets (NTA) per share of 12.58 sen as at Nov 30, 2017, and potential impairment of doubtful debts totalling RM10.6 million, or 2.7 sen per share.
The deemed adjusted NTA per share is 9.88 sen. The subscription price of 8.5 sen represents approximately 14% discount from the deemed adjusted NTA per share, the company said.
In addition, the five-day volume weighted average market price (VWAP) of NWP shares up to and including March 2, 2018 — being the last full trading day immediately preceding the date of the HoA is 12 sen — the subscription price represents approximately 29.17% discount to the VWAP.
“The development project requires substantial funding and hence, NWP is being identified to jointly undertake the project together.
“The proposed subscription will enable LBS Bina to part fund the ZIC project via NWP and to retain control of the ZIC project via NWP,” the developer added.
NWP, which is principally involved in the wood-based industry, will not venture into property development, property construction and property investment.
Meanwhile, Lamdeal holds a 60% interest in Zhuhai International Circuit Ltd (ZICL) who is the registered and beneficial owner of the development land.
As at the date of the HoA, ZICL obtained a development approval from the relevant local authorities — the Development and Reform Bureau of Gaoxin District — for the land development.
LBS Bina said both parties shall enter into definitive agreements within 60 days from the date of HoA. Shares of both counters were suspended yesterday pending the announcement.