KUALA LUMPUR (May 5): Iskandar Waterfront Holdings Sdn Bhd (IWH) is moving forward with the process of merging with its listed associate Iskandar Waterfront City Bhd (IWC) today despite the setback from an aborted deal to acquire a controlling 60% stake in Bandar Malaysia Sdn Bhd. IWH today entered into a merger agreement with IWC, following the acceptance by the board of IWC to table the merger scheme to IWC’s shareholders. In a statement today, IWH said the merger scheme forms part of a proposed rationalisation and restructuring exercise undertaken by the group to consolidate its land bank, with the aim of creating greater synergies and economies of scale. Under the merger scheme, IWH will acquire the remaining 61.7% stake in IWC at an offer price of RM1.50 per IWC share, to be satisfied via issuance of IWH’s shares on the basis of one new IWH share for one existing IWC share. Thereafter, IWH will assume the listing status of IWC. Subsequent to this, IWH will inject 3,598 acres of land bank with an open market value of RM4.3 billion into IWH through definitive agreements with the respective vendors, namely IWH director-cum-executive vice-chairman Tan Sri Lim Kang Hoo, Kumpulan Prasarana Rakyat Johor Sdn Bhd and other Johor state entities within 60 days from the date of the merger agreement. "Following the completion of the corporate exercise, IWH will have a total land bank of approximately 6,773 acres in Johor Baru, with an estimated open market value of approximately RM30 billion as assessed by the appointed independent valuers. "This merger scheme will provide an opportunity for IWC’s shareholders to participate in a significantly enlarged listed entity with developments in strategic locations," said IWH. It added that it remains confident in the prospects of the proposed merger scheme and proposed restructuring to establish one of the largest listed strategic master property developers on Bursa Malaysia. Separately, IWC has signed a supplementary agreement with Greenland Tebrau Sdn Bhd for the disposal of three pieces of land measuring a combined 127.92 acres in Johor for RM2.37 billion. Barring any unforeseen circumstances, the proposed land disposal is expected to be completed by the second quarter of 2020. Trading in IWC's securities has been suspended for two days since yesterday.