SP Setia Bhd. agreed to make some amendments to the terms of its planned merger with I&P Group Sdn. Bhd.
The amended agreement will allow the company to settle the 3.65 billion-Malaysian-ringgit purchase consideration for I&P within three business days from the listing of the rights shares and class B Islamic redeemable convertible preference shares on the Main Market of Bursa Securities or the drawdown of 1 billion ringgit of the facilities to be obtained from Maybank Islamic Bhd., whichever is later, instead of settling the purchase consideration on the completion date.
Further, if the company fails to pay the purchase consideration within three months from the settlement date, it will have to pay an interest on the outstanding sum at a rate of 5% per annum calculated on a daily basis.
Additionally, the company agreed to waive a condition in relation to the listing of the rights shares and the class B Islamic preference shares, whereby the proposed acquisition can take place before the completion of the rights issue of the shares.
The amendments and waiver are expected to enable the company to complete the acquisition before Jan. 1, 2018. The audit committee of SP Setia and the board also deem the new terms and the waiver to be in the best interest of the company.
The merger will create the largest property company in Malaysia.
As of Oct. 16, US$1 was equivalent to 4.22 Malaysian ringgit.