PETALING JAYA: The Securities Commission (SC) has, in principle, approved the proposed demerger and listing prospectus of IOI Properties Group (IOIPG).

In an IOI Corp Bhd announcement to Bursa Malaysia, it said the SC had approved the equity requirement for the public companies, while approving in principle IOIPG’s listing prospectus for registration.

The approval is subject to the corporate guarantees provided by IOI Corp for IOI Properties Bhd and its entities to be uplifted and/or transferred to IOIPG prior to the submission of the confirmation for registration of IOIPG’s prospectus to the SC.

Another condition is that Tan Sri Lee Shin Cheng, Datuk Lee Yeow Chor and Lee Yeow Seng should respectively hold only executive positions in either IOI Corp or IOIPG and not in both companies.

Additionally, IOIPG must appoint at least one senior qualified personnel responsible for its legal and company secretarial matters who is not in shared employment with IOI Corp prior to the submission of confirmation for the registration of IOIPG’s prospectus to the SC.

The SC also imposed additional conditions on the properties of IOIPG and noted that its joint principal advisers and IOIPG must fully comply with the requirements of the SC’s Equity Guidelines and Prospectus Guidelines to the listing.

“The board of directors of IOI Corp and IOIPG would deliberate on the conditions imposed by the SC on the proposed demerger and listing and consider the appropriate course of action,” the company said.