Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on May 30, 2019

KUALA LUMPUR: The share price of Malton Bhd closed higher yesterday after the group announced that its controlling shareholder Tan Sri Desmond Lim Siew Choon, together with the Qatar Investment Authority (QIA), would be partaking in the development of the Pavilion Bukit Jalil mall.

The QIA is the sovereign wealth fund of Qatar. It was established in 2005 to develop, invest and manage Qatar’s state reserve funds and other assets.

Following the news, Malton rose as much as three sen or 5.6% before paring some gains to close at 55 sen, still up 1.5 sen or 2.8%, yesterday. This raised its market capitalisation to RM290.48 million after 4.61 million shares were done. Year-to-date, the counter has gained about 22.22% from 45 sen.

Malton announced in a late filing with Bursa Malaysia on Tuesday that it is disposing of a 49% stake in the mall, which is currently under construction, to raise money to complete the massive development located in the southern part of Kuala Lumpur.

Malton said it, together with the QIA’s wholly-owned unit Q PBJ Sdn Bhd and Lim’s private vehicle Jelang Tegas Sdn Bhd, had signed a share sale agreement with Regal Path Sdn Bhd to sell the stake for RM1.48 billion. Regal Path is the special-purpose vehicle which will retain ownership of the Pavilion Bukit Jalil mall under this transaction.

Under the fundraising exercise, Lim and the QIA will inject fresh capital of RM277.25 million and RM406.7 million respectively through subscription of redeemable preference shares in Regal Path.

“We are very happy to have the Qatar Investment Authority on board and their participation in the Pavilion Bukit Jalil mall project is indeed testimony to the Qatar Investment Authority’s confidence not just in the projects managed under the ‘Pavilion’ brand, but Malaysia as a stable and high-potential investment destination.

“This solid and long-term partnership signifies our overall efforts to drive the nation’s economy forward. We hope and look forward to forge further partnerships together and continue to play a major role in Malaysia’s economic development,” said Lim in a statement yesterday. Lim is also the non-executive chairman of Malton.

Slated for completion by March 2021, the Pavilion Bukit Jalil mall, the crown jewel of Bukit Jalil City, is poised to be an entertainment and retail hub in the southern corridor of the Klang Valley, Malton said.

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