Thursday 28 Mar 2024
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KUALA LUMPUR (April 6): HCK Capital Group Bhd’s indirect subsidiary Koridor Efektif Sdn Bhd (KESB) is proposing to acquire a 12.14ha (hectare), i.e. 30-acre industrial land in Demak Laut Industrial Park, Block 8 Muara Tebas Land District in Kuching, Sarawak for RM13.5 million or RM450,000 per acre in cash.

KESB is 67% owned by Oval Bridge Sdn Bhd, which is in turn 51% owned by HCK Properties Sdn Bhd, a wholly-owned indirect subsidiary of HCK.

As such, the company’s effective shareholdings in KESB is 34.17%. The principal activity of KESB is in property development.

HCK said the preliminary indicative valuation by an independent professional valuer of the said land, was at RM27 million.

Given the group’s indirect 34.17% stake in KESB, HCK’s effective obligations of the purchase price is at RM4.61 million, which will be funded via the group’s internally-generated funds. The remaining balance of Purchase Price of RM8.89 million is contributed by KESB’s other effective shareholders of 65.83%.

In its filing to Bursa Malaysia this evening, HCK said KESB entered into a Deed of Novation Agreement with CTR Prefab System Sdn Bhd and Admuda Services Sdn Bhd for the proposed acquisition.

Both parties had entered into the principal agreement for the sale and purchase of the said land on May 21, 2015.

The land is located approximately 14 km from Kuching City centre within the Demak Laut Industrial Park, which is an established industrial park that specially caters for mixed light and medium industries.

The purchase price was arrived at, on a willing-buyer willing seller basis, based on the development potential and strategic location of the land, given the potential returns expected from the development of the said land in the near future.

“The HCK Capital Group will be able to benefit from the future development of the said land that is being acquired by KESB.

“This will in turn broaden and expand HCK’s earnings base and improve its long term growth prospect,” read the group’s announcement.

The proposed acquisition will enable the HCK Capital Group to further expand upon its property-related business, in particular property development.

This is in line with the group’s intention to continuously seek for suitable and viable acquisition opportunities, which may include among others, acquisition of land banks and property projects to further expand the property-related businesses.

The proposed acquisition is expected to be completed by the second quarter of 2016.

HCK, which has interests in property, hospitality, technology and media, saw its shares close up 8 sen (2.5%) today to RM3.31, for a market capitalisation of RM183.51 million.

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