Friday 29 Mar 2024
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KUALA LUMPUR (Oct 16): Hong Leong Investment Bank Bhd expects Quill Capita Trust’s (QCT) planned acquisition of the Platinum Sentral commercial property here from Malaysian Resources Corp Bhd (MRCB) to be completed in the fourth quarter of this year.

In a note today, Hong Leong said this followed a delay in the deal's submission to the Securities Commission (SC).

“Previously, we expected the deal to be completed in 3Q14 as per earlier guidance.

"However, we understand that QCT had to seek certain exemptions from SC prior to submitting its full application for the proposed acquisition. This has inevitably caused the delay in the submission process, Hong Leong said.

Hong Leong's note followed a meeting with QCT officials.

According to Hong Leong, there was no indication about the composition of the new board in QCT's management company Quill Capita Management Sdn Bhd.

"It is anticipated that MRCB would have board representation that would correspond with its 41% equity shareholder in the management company post completion of the acquisition
exercise.

"We expect to have a clearer picture of the future investment strategies of the management company and how it intends to grow the REIT once the new board is appointed," Hong Leong said.

MRCB had previously indicated its intention to inject at least RM1 billion worth of assets into QCT every year.

According to Hong Leong, MRCB has in the pipeline, assets worth some RM20 billion to be injected into QCT in the next few years.

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