KUALA LUMPUR (July 11): Steel products maker Atta Global Group Bhd is proposing to acquire two property development companies, Eminent Potential Sdn Bhd and Scanrite Sdn Bhd, for RM7.5 million, as part of its diversification into the property business.

In a filing to the exchange today, Atta Global said its wholly-owned subsidiary Atta Properties Sdn Bhd had entered into two share sale agreements with the joint owners of the two companies, Chan Kok Leong and Leng Mei Kuan, for the acquisitions.

The agreements would see Atta Properties acquiring Eminent for RM4 million, and Scanrite for RM2 million. Eminent has a principal asset which is a piece of land in Daerah Barat Daya, Penang. Atta Properties has agreed to fork out an additional RM1.5 million for cost and expenses for the eviction of all squatters on the said property.

According to Henry Butcher Malaysia, the value of the Eminent land was RM13 million as at Jan 3, 2017.

Atta Properties will also acquire Scanrite, which owns a piece of land in Kulim, Kedah for RM2 million. In a valuation dated Aug 6, 2015, Rahim & Co indicated the value of the land was RM2.88 million.

Atta Global said the proposed acquisitions will provide the group with opportunities to obtain additional land bank for future development. "The board is optimistic that the proposed acquisitions would generate synergistic benefits to the group in future."

Atta Global closed unchanged at 80 sen today, for a market capitalisation of RM163 million.