E&O to list property unit in London

Eastern & Oriental Bhd (E&O) plans to list its UK-based property unit on the London Stock Exchange’s Alternative Investment Market (AIM), reported The Star.

E&O PLC’s proposed public issue would likely raise minimum gross proceeds of £36 million (RM241.5 million), which will be used for property development expenditure, debt repayment to E&O Property Development Bhd as well as working capital, acquisitions and investments.

Notably, E&O PLC’s proposed listing on AIM will involve proposed placings, a restricted offer as well as offer for sale of up to 250.99 million shares, which works out to around 70 percent of the company’s enlarged issued and paid-up share capital, with matching warrants, said E&O in a filing with Bursa Malaysia.

The proposed global offer will consist of the proposed offer for sale and proposed public issue.

Moreover, the issue price per initial public offering share including the exercise price per warrant will be determined at a later date, said

the group.

The proposals are set to be completed by Q4 2015 or Q1 2016.

E&O PLC’s assets are invested via its subsidiaries, namely Loxley Holdings Management Ltd, Hammersmith Properties Ltd and Hammersmith Development (UK) Ltd.

E&O PLC and its subsidiaries will redevelop three real estate properties in London – Thames Tower, Landmark House and ESCA House – subject to it securing the necessary planning approvals from relevant authorities.

Meanwhile, E&O saw its net profit increase 22.6 percent to RM23.3 million in Q1 ended 30 June 2015 from RM18.96 million over the same period last year.

Revenue plunged 47 percent from RM129.74 million to RM68.89 million, while earnings per share climbed 1.90 sen in Q1 2015 from 1.56 sen over the same period last year.

“The decrease in revenue is due to lower revenue recognition, following the completion of two blocks of the Quayside Andaman Condominium in Seri Tanjung Pinang in the previous financial year,” said the company.