At SP Setia’s extraordinary general meeting (EGM) yesterday, President and CEO of SP Setia, Datuk CJ Khor has announced that the group will not do less than the current year’s sale and look to maintain that same target next year.  At the EGM, shareholders approved the acquisition of sister company I&P Group Sdn Bhd (I&P) for RM3.65bil in cash, which allows SP Setia to almost double its landbank and speed up expansion plans.

According to an article on theStar, the purchase consideration was arrived based on a willing buyer-willing seller basis and taking into account I&P’s adjusted unaudited consolidated net assets of RM6.01bil.  Khor is confident that this acquisition will “create more value” for the group, adding in approximately 4,276 acres of landbank across central Klang Valley and Johor Bahru.  Once consolidated, SP Setia’s group landbank is expected to increase by 83% to 9,417 acres.

SP Setia 3Q17 results The property developer enjoyed a surge of 89% increase in net profit to RM253.2mil from RM134.1mil a year ago, spurred by a higher contribution from its property development division.  Accumulative as at 30 September 2017, SP Setia’s net profit stands at RM494.7mil from RM388.2mil in the same corresponding period.  TheStar reported that the group has achieved sales of RM2.82bil for the nine months ended 30 September 2017.

Source: Macquarie Research - 17 Nov 2017