This article first appeared in The Edge Malaysia Weekly, on December 21 - 27, 2015.
A corporate exercise by MCT Bhd (formerly GW Plastics Holdings Bhd) to take over the restructured MCT Consortium Bhd has created value for its existing shareholders.
Under the reverse takeover (RTO), GW Plastics Holdings Bhd — which was classified a Practice Note 17 company — had acquired MCT for RM1.21 billion. The acquisition was satisfied by the issuance of 1.032 billion new shares at RM1 each and irredeemable convertible unsecured loan stocks at a nominal value of RM122.2 million.
Following that, MCT assumed the listing status of GW Plastics in April, becoming a property development and investment firm.
GW Plastics entered PN17 status in January 2013 after it sold its core plastic manufacturing business to Scientex Bhd for RM283.2 million.
MCT’s current development projects carry a total gross development value (GDV) of RM3.26 billion and its pipeline of projects has an estimated GDV of RM5.73 billion. MCT, which had started off as a builder in 1999, has an estimated landbank of 540 acres.
Two months ago, the Malaysian property developer saw its foreign substantial shareholder increase its stake in the company.
Ayala Land — the property arm of Ayala Group, the Philippines’ oldest and largest conglomerate — completed a follow-on investment in MCT worth RM379 million and upped its stake to 32.95% from 9.16%. The property group from the neighbouring country had acquired its 9.16% stake in MCT via a private placement in April. Lembaga Tabung Haji is another substantial shareholder of the group with a 10% stake.
MCT’s stock price rose to its highest level of RM1.43 — or 12% above the reference price of RM1.28 on its debut. It had closed at RM1.33 then but has since dropped, ending at RM1.29 on Dec 13.
RHB Investment Bank is the sole principal adviser and sole placement agent for the deal.
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