The indicative price for the proposed acquisition is estimated to be within the range of RM 3.5 billion to RM3.75 billion, SP Setia said in a bourse statement.
Permodalan Nasional Bhd (PNB), a state investment fund and significant shareholder in both the companies, said it will provide the necessary capital support for the deal.
PNB owns 63.5% of SP Setia, according to Thomson Reuters data, while I&P Group is a wholly owned subsidiary of the fund.
“This combination will create the largest property company in Malaysia and one of the leading players, with a total land bank of close to 10,000 acres,” PNB president and group chief executive Abdul Rahman Ahmad said.