State-controlled UEM Land Holdings Bhd said it made a conditional takeover offer for its smaller rival Sunrise Bbd in a bid to form Malaysia's biggest listed property developer by assets.

The offer values Sunrise at RM2.80 per share, UEM said in a stock exchange filing today. Stockholders can choose a share swap or can subscribe to preference shares, it said. The offer is an 11 per cent premium to Sunrise's last traded price.

The combined company would have assets of RM5 billion (US$1.6 billion), said UEM. The two developers could leverage on each other's core competencies to build townships, commercial properties and condominiums, it said.

'By leveraging on Sunrise group's robust financial strength and prospects, UEM Land is expected to be better positioned to accelerate its own business expansion and to secure new development projects,' the statement said.

UEM and Sunrise's shares were suspended today and yesterday. UEM, controlled by state investment company Khazanah Nasional Bhd, rose 0.4 per cent to RM2.26, while Sunrise climbed 4.1 per cent to RM2.52 on November 2. -- Bloomberg