Sunway acquires JV partner stake in Sunway City Iskandar Puteri for next flagship

Sunway Group’s wholly owned unit Sunway City (SunCity) will reportedly be acquiring Iskandar Assets’s (IASB) 40% stake in their joint venture company Sunway Iskandar Development to develop Johor’s Sunway City Iskandar Puteri (SCIP) into Sunway Group’s next flagship township.

SunCity will be buying over IASB’s stake for RM770,450 in the joint venture which was previously established to set up a RM412.673 million mixed development project in Johor known as SCIP, according to The Star.

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IASB is also the wholly owned unit of Iskandar Development and is 60% held by state-owned investment fund Khazanah Nasional.

In addition to purchasing IASB’s stake, SunCity will also subscribe for 84.23 million non-cumulative redeemable preference shares in the joint venture company and redeem 76.27 million non-convertible non-cumulative redeemable preference shares (NCRPS) held by IASB.

With an acquisition price totaling to RM169.23 million, SCIP will become a wholly-owned subsidiary of SunCity.

Sunway has also mentioned that the proposed acquisition and proposed subscription are expected to be completed by the third quarter of this year and that the group plans to satisfy the transaction by cash from its internally generated funds.

A+M has reached out for more information.

The news comes shortly after Sunway Group and Huawei Technologies Malaysia partnered to embark upon its new ‘Digital Innovation Programme 2.0’, a programme set to further advance digital innovation, the cloud modernisation journey, and strengthen collaboration across all Sunway business divisions in the ASEAN region.

This includes identifying additional areas of cooperation with a focus on big data, Smart Townships and Digital Power.

The partnership between Huawei Malaysia and Sunway has advanced since their first MoU in September 2021 on ‘Digital innovation programme 1.0’, where both entities collaborated on several fronts, including cloud migration, app modernisation and digital growth platforms, comprising the Sunway Super App as well as artificial intelligence and machine learning capabilities.

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