Sunway Holdings and Sunway City shareholders at the Extraordinary General Meetings convened earlier today voted in favour of the proposed merger between the two companies to form Sunway Berhad.

“The merger of Sunway Holdings Berhad and Sunway City Berhad marks a significant step in bringing the Sunway group of companies to the next stage of growth. The Board of Sunway Berhad and I would like to express our appreciation to the shareholders for their support, and I am pleased that they share my excitement about the future of the combined group. With the creation of a single formidable entity through increased size and realisation of operational synergies, we will be going full steam ahead deliver to the shareholders, sustainable and enhanced shareholder value, that we believe that the merged group can create,” said Tan Sri Dato’ Seri Dr Jeffrey Cheah, AO, Founder and Chairman of Sunway Berhad.

“The shareholder’s endorsement of the merger will allow the achievement of our vision to become a world-class property-construction company,” he added.

The combined entity will be one of the largest property-construction players in the pan-Asian region, with a wide geographic presence (with operations in 40 locations in 12 countries with total assets of approximately RM7.0 billion), a combined land bank of more than 2,200 acres with a total gross GDV of approximately RM25.0 billion, and a market capitalisation of over RM 3.5 billion (based on the outstanding number of securities in Sunway Holdings and Sunway City as at 29 April 2011). The enlarged entity will enable effective access to capital markets, stronger credit profile and an efficient capital structure.

With the two-core business strategy, Sunway will emerge as sizeable listed company with concentration of earnings and activities providing a clear platform for going to market. Moving forward, its property division will seek to extract full value from its expertise in the integrated development model and is expected to be replicated aggressively abroad. Its construction division will seek to differentiate itself by focussing on IT- enabled design and build expertise and to shift to high value add specialty segments.

The merged group will be helmed by Tan Sri Dato’ Seri Dr Jeffrey Cheah, AO, as its Chairman, while Datuk Razman M. Hashim will be appointed as the Deputy Chairman of Sunway Berhad. Leading the management and operations, Datuk Chew Chee Kin is expected to be appointed as the Chief Executive Officer of Sunway Berhad.

Sunway Berhad is targeted to be listed on Bursa Malaysia in the third quarter of 2011. A further announcement will be made in due course.