MCT's major shareholders grant call options to Philippines' Ayala Land

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KUALA LUMPUR (May 11): MCT Bhd’s major shareholders have entered into agreements with Hong Kong-based Regent Wise Investment Ltd (RWIL), a wholly-owned
subsidiary of the Philippines' Ayala Land Inc, to grant call options representing a collective 32.95% equity interest in the company.

In a filing with Bursa Malaysia today, MCT (fundamental: 1.65; valuation: 0.3) said its deputy executive chairman Tan Sri Barry Goh Ming Choon and chief executive officer Datuk Seri Tong Seech Wi had in their individual capacities on Friday separately entered into call option agreements with RWIL for the purpose. 

“The grant and exercise of such call options are subject to and conditional upon the lapse of the moratorium period applicable to Goh’s and Tong’s shares held in MCT (being a period of six months after the listing date of MCT, expiring on Oct 6, 2015) and such call options will only be exercisable within a period of one month commencing from the day falling immediately after the expiration of such moratorium period,” it said.

MCT said Goh and Tong had informed the company that they believe that the grant of call options is a positive development and augers well for MCT, as it involves the potential acquisition by Ayala Land, the largest property developer in the Philippines, of a very substantial stake in MCT.

The partnership will also accelerate MCT’s emergence as a key player in the Malaysian property market in the long term, it added.

RWIL had earlier acquired a 9.16% stake in MCT via a private placement exercise undertaken in connection with MCT’s listing exercise.

Under the deal, RWIL has the right, but not the obligation, to acquire 135.89 million MCT shares from Goh and 73.15 million MCT shares from Tong. This will enable RWIL to increase its shareholding in MCT to 24.815%.

Following the exercise of the first option, RWIL will have the right, but not the obligation, to acquire an additional 70.58 million MCT shares from Goh and 38 million MCT shares from Tong, which will enable RWIL to increase its shareholding from 24.815% to 32.95%.

RWIL had earlier acquired 122.22 million MCT Shares or 9.16% stake in MCT via a private placement exercise undertaken in connection with MCT’s listing exercise.

MCT shares rose 3 sen or 2.27% to closed at RM1.35 today, giving it a market capitalisation of RM1.8 billion. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. )