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Rationale Behind UEM’s Offer for Renong’s Assets

Rationale Behind UEM’s Offer for Renong’s Assets. No new debt assumed by UEM in relation to PLUS Bonds. Debt already held by the SPV Bonds. UEM is currently exposed to risks of debt. Renong’s “Compensation” to UEM’s MI (EGM 9 th August 1999)

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Rationale Behind UEM’s Offer for Renong’s Assets

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  1. Rationale Behind UEM’s Offer for Renong’s Assets • No new debt assumed by UEM in relation to PLUS Bonds. • Debt already held by the SPV Bonds. • UEM is currently exposed to risks of debt. • Renong’s “Compensation” to UEM’s MI (EGM 9th August 1999) • 1000 acres of land in Prolink to minority shareholders and • warrants to minority shareholders, but NOT Renong (Part of SPV Bond). • UEM is only taking over the assets to protect its own interest and can thereby control the asset disposal programme.

  2. Options and Rationale of Offer

  3. Conditions on the Proposed Offer • TEB – Time dotCom is listed. • CAHB – as is. • Prolink – • Company’s estimated market value : RM7.50 psf (Latest transaction : RM8.16 psf). • UEM offering RM5.85 psf for approx. 15,500 acres • Debt reduced from RM800m to RM300m. • PUTRA • Assume free of project debt of RM4.0bn. • Assume recovery of investment (RM1.2bn vs. original RM1.3bn) • UEM offering RM1.1bn The proposed offer is not expected to dilute UEM’s NTA or EPS

  4. Value of Assets * Based on the 5-day weighted average to the 17th November 2000

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