KUALA LUMPUR (June 3): Eastern & Oriental Bhd's (E&O) group managing director Datuk Seri Terry Tham Ka Hon has become the single largest shareholder in the lifestyle property developer, with the acquisition of additional 10% stake from Sime Darby Bhd for RM327.54 million.

Tham now holds a 21% stake in E&O from 11% previously.

In a filing with Bursa Malaysia today, E&O said Tham, via his private investment vehicle Paramount Spring Sdn Bhd, has acquired an additional 125.98 million shares in E&O at RM2.60 per share or RM327.54 million from Sime Darby. This reduces the latter's stake to 12% from 22%.

Additionally, Tham acquired all 48.8 million convertible warrants 2015/2019 in E&O held by Sime Darby at 30 sen each.

This brings the total transaction price to RM342 million.

"This move to increase my stake in the company is a reflection of my continued conviction and confidence in the E&O Group and the brand that has been built through the years," said Tham in a statement today.

"I strongly believe that the group has tremendous potential and I am keen to participate in its long-term growth trajectory," he added.

Tham noted that Phase 2 of its Seri Tanjung Pinang project (STP2) is underway, with initial mobilisation works in progress upon securing all necessary authorities' approvals.

"This is a catalyst project for E&O, as it is significant for Penang, and I am keen to be even more involved in bringing its concept master plan to reality," he said.

In a separate statement today, Sime Darby said the stake disposal is part of its asset monetisation plan.

"The share sale forms part of our rationalisation of property investments taking into account opportunities for future growth in areas of strategic significance," said Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh.

Sime Darby added that proceeds from the sale will be used for working capital.

Sime Darby's latest stake divested is part of a 30% block that the group had acquired in August 2011 for RM2.30 per share in a controversial transaction that had prompted a shareholder of E&O to file a legal suit. It had in July 2014 pared down its stake in E&O after disposing of 9.9% of the shares to Tham at RM2.90 each in a deal worth RM319 million.

E&O shares closed unchanged at RM1.59 today, giving it a market capitalisation of RM2 billion. Sime Darby's stock settled 8 sen or 1.05% lower at RM7.52, bringing a market cap of RM47.58 billion.