It will issue some RM253 million of 10-year irredeemable convertible unsecured loan stock to parent YTL Corp Bhd as payment for the purchases and to settle the firms' outstanding inter-company balances.
The rest will be settled in cash, YTL Land said in a filing to Bursa Malaysia yesterday.
The plan to house the group's property development assets under YTL Land allows the company to acquire key assets and ongoing property development in strategic locations in Malaysia and Singapore, it added.
YTL Land will have access to a proposed development in Brickfields as well as land in Jalan Bukit Bintang and Jalan Stonor in Kuala Lumpur, and in Genting Highlands, Pahang.
It will also have access to development land in Singapore's Sentosa Cove and Orchard Boulevard.
YTL Land hopes to complete the purchases by the first half of next year.
Upon completion, the company's capital structure and asset base will be enlarged and it will rank as one of the country's leading property development companies with a regional presence.
"This will also enhance its earnings potential and competitiveness in property development, allowing it better access to the financial markets," it said.
The plan needs the approval of YTL Land's and YTL Corp's shareholders, among others.
Given that these are related party deals, the company has appointed PM Securities as the independent adviser to non-interested directors and shareholders.
Maybank Investment Bank is the principal adviser for the deals.
By Business Times
