Tuesday, June 5, 2012

afternoon highlight (05/06/12/098/534) Khazanah plans to sell subsidiary to qualified bumi


Khazanah plans to sell subsidiary to qualified bumi

KUALA LUMPUR: Khazanah Nasional Bhd plans to sell its entire interest in wholly-owned subsidiary STLR Sdn Bhd via an open tender to a qualified bumiputra entrepreneur.
Khazanah said in a statement the proposed divestment of STLR, a property investment holding company, was part of its efforts to assist the Government in encouraging entrepreneurship and growing bumiputra equity.
“It is also in line with Khazanah’s overall divestment strategy of disposing non-core assets in a gradual and orderly manner to fulfil the role of government-linked investment companies and government-linked companies under the New Economic Model.”
In February, Prime Minister Datuk Seri Najib Tun Razak announced that Khazanah and Permodalan Nasional Bhd would divest 10 non-core assets to bumiputra companies.
STLR is one of five non-core assets identified by Khazanah to be divested under the exercise this year.
The company was chosen as it could offer an opportunity for the acquiring party to tap into the prospects of a mature township in Kuala Lumpur and the exponential growth of a fast-growing township in Medini, Iskandar Malaysia.
STLR owns a prime 2.9-acre residential-zoned land in Bukit Tunku, Kuala Lumpur.
It has also entered into an agreement with Iskandar Investment Bhd to acquire an interest in a strategic 1.3 million sq ft gross floor area of developmental asset suitable for mixed development in Medini, Iskandar Malaysia.
“The divestment will allow STLR to enjoy financial and strategic benefits through the ownership and management of a qualified bumiputra company with expertise in the relevant field,” Khazanah said in the statement.
It added that the divestment would involve a three-stage bidding process – pre-qualification, indicative bid and binding bid.
“The divestment will be conducted in a transparent and merit-based manner and will be presided by an independent evaluation panel.
“It is intended that the potential buyer should fulfil several pre-qualifying criteria, which include being a 51% bumiputra-owned and managed company with a good financial track record and experience in the relevant sector,” it said.
Other criteria considered for the potential buyer include possessing a viable business plan, strong entrepreneurship and business acumen, and offer the best bid for value creation.
Khazanah said the new shareholder of STLR would be selected based on both financial and strategic considerations.
The list of financial and strategic evaluation criteria will be outlined in an invitation to bid in due course.
Interested parties can refer to the notice on the offer for sale by Khazanah that will be advertised in all major newspapers this week.
Source : The Star
Date : 5 June 2012
afternoon highlight (05/06/12/098/534)

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