COUNTRY Heights Holdings Bhd (CHHB) has entered into five heads of agreements (HOA) to acquire assets from the private investments of its executive chairman Tan Sri Lee Kim Yew in exchange for a 100% issuance of CHHB shares.
Such move will delineate a clearer line of operations between the private interests of the controlling shareholder and the public listed group, according to CHHB.
In essence, this will transfer all privately held interest by Lee in the healthcare operations under GHHS Healthcare brand as well as some of privately-owned properties in the Mines township and Kajang, including the jewel of the Mines township – Mines Wonderland – to CHHB.
For clarity, the five HOAs entail the Golden Horses Health Sanctuary (GHHS Healthcare); Mines Waterfront Business Park (Level 9 &10); two plots of land measuring 5.62 acres and 2.82 acres in Kajang for future high rise development; Mines Wonderland Sdn Bhd and Dream City Phase 2 (a service apartment project).
According to a Bursa Malaysia filing by CHHB, the entire cost of the corporate exercise amounted to RM554 mil.
CHHB further noted that the corporate exercise is part of an ongoing transformation exercise which will also involve raising funds from the capital market and other digital initiatives to be announced in due course.
Upon completion of the proposed acquisitions, CHHB’s share capital will rise to circa 737 million with the company’s market capitalisation in the RM1 bil range.
“We must reset, rethink, rebuild, reorganise and reunite during this challenging times. I have decided to transfer some of the most attractive assets under my private holdings to CHHB based on COVID-19 pandemic prices via issuance of CHHB shares,” commented Lee who is also CHHB’s founder.
“(This) is in order to (i) create immediate value in group; (ii) create a clearer line of separation between the listed entities and my private investments.
“This will provide the group with a better foundation with which to expand the healthcare division and take the next step into our digital initiatives which will be revealed soon.”
Echoing the view expressed by Lee, CHHB’s managing director Datuk Jared Lim noted that acquiring the said assets will ultimately create a clearer line between shareholders and the listed entity.
“This is part of our overall transformation plan and will create a larger capitalisation, better value and greater economies of scale for CHHB,” he added.
At the close of yesterday’s trading, CHHB was unchanged at RM1.20 with 11,000 shares traded, thus valuing the company at RM331 mil. – Oct 7, 2021
Pic credit: NST
