Battersea Phase 2 deal extended till year-end

PETALING JAYA: The acquisition of London’s Battersea Power Station (BPS) Phase 2 by Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) has been further extended till year-end from Sept 30.

In filings with Bursa , SP Setia Bhd and Sime Darby Property Bhd (Sime Property) said that Battersea Phase 2 Holding Co, PNB and EPF have mutually agreed to extend the exclusivity period in the proposed transaction.

The exclusivity period will expire on Dec 31, 2018 or other date as may be mutually agreed by the parties, or upon execution of the definitive and binding agreements between the parties to formalise the proposed transaction, whichever is earlier.

“The parties have made significant progress towards finalising the transaction and anticipate entering into the proposed transaction in the fourth quarter of 2018,” said SP Setia and Sime Property.

The parties expect to make further announcements in due course in relation to the status of the heads of terms, proposed transaction and/or the execution of the transaction documents.

Earlier in , PNB and EPF proposed to acquire the commercial assets worth about £1.61 billion in Battersea Phase 2 Holding Co. Battersea Phase 2 Holding Co is a unit of Battersea Project Holding Co Ltd which is the vehicle undertaking the BPS project in London.

SP Setia and Sime Property hold 40% stake each in Battersea Project Holding Co Ltd, while EPF holds the remaining 20%.

The proposed transaction was aimed at reorganising the BPS’ commercial property under PNB and EPF. The initial deadline to finalise the deal was on Sept 30.

Last month, PNB president and CEO Datuk Abdul Rahman Ahmad said that the deal would likely be delayed, with further clarity expected in the fourth quarter of 2018.

SP Setia’s fell 1.96% or 5 sen to close at RM2.50 with 1.34 million shares traded while Sime Property’s shares fell 1.75% or 2 sen to close at RM1.12 with 7.64 million shares traded.

Source: The Sun Daily

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