KUALA LUMPUR (Dec 4): Shares of IGB Bhd extended gains today following a record high closing in the previous trading session, after the group announced its plans to sell a UK-based joint venture company for £235 million or RM1.27 billion.
The stock opened higher at RM3.49 this morning and climbed to notch a fresh record of RM3.70, up 30 sen or 8.82% from its last closing.
At its current price, the property firm — co-founded by the late Datuk Tan Kim Yeow and Datuk Tan Chin Nam — is valued at RM2.52 billion.
IGB, at the time of writing, saw a total of 178,300 shares done, and was the second largest gainer on Bursa Malaysia.
The group had told the stock exchange Tuesday evening that the company, together with its partner Tower Ray Ltd, plans to sell their 50-50-owned UK-based Black Pearl Ltd, which owns a plot of freehold London land, for £235 million or RM1.27 billion, although it did not specify how the proposed consideration would be satisfied.
IGB's 50% stake in Black Pearl is held under wholly-owned Verokey Sdn Bhd. Verokey and Tower Ray each hold a 50% stake in Black Pearl Ltd, which owns the freehold title to the land known as 18 Blackfriars Road, SE1, London.
In Black Pearl's planning application to the Greater London Authority that was submitted in April last year, it wants to build six buildings ranging from five to 53 storeys each, on the 18 Blackfriars Road site that measures 0.80ha in total.
This redevelopment will include an office space, a 548-room hotel, 288 residential units, a flexible retail component, a restaurant, a music venue, and car parks, among others. The architect for the redevelopment was listed as Wilkinson Eyre.