IOI Properties demerger gets nod
PUTRAJAYA: IOI Corp Bhd has received shareholders’ nod for the demerger of its property arm, IOI Properties Bhd, said group executive chairman Tan Sri Lee Shin Cheng.
Lee said upon completion of the exercise, IOI Properties will be listed on Bursa Malaysia in January next year.
“We are at the final stage and have received approvals from the Securities Commission and Bursa Malaysia for the listing,” he said after the extraordinary general meeting, here, yesterday.
He said after the demerger exercise, IOI Corp will receive a revenue of about RM1.9 billion.
“IOI Corp will use part of the money to redeem its bond worth US$500 million (RM1.57 billion) and the rest as working capital,” he said.
Lee said IOI Properties currently contributes about 30 to 40 per cent to IOI Corp’s revenue.
He said after the listing, there will be two companies — plantation and integrated downstream plantations company (IOI Corp) and property company (IOI Properties).
“After the listing, IOI Corp will focus on the plantation business and will enhance its participation in downstream activities,” he added.
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