KUALA LUMPUR (Sept 9): Ideal Sun City Holdings Bhd plans to diversify into property investment by acquiring two commercial properties in Penang for RM26 million cash.

The ACE Market-listed company plans to partly finance the acquisition by issuing a 30% stake to independent third party investors to be identified later.

One of the properties it is planning to acquire is at Timor Laut, which carries 46 commercial units dubbed C.E.O executive suites, for RM18 million, its filing with Bursa Malaysia today showed.

The second purchase is the 12 units of stratified commercial space comprising four units of three-storey shop offices at Barat Daya, for RM8 million.

Ideal Sun City, which is currently involved in project management business, will seek shareholders’ approval at an extraordinary general meeting for the proposed diversification.

The acquisitions are deemed as related party transactions as both vendors of the properties, namely Ideal Concept Intelligence Sdn Bhd and Ideal Capital Intelligence Sdn Bhd, are owned by Datuk Ooi Kee Liang and Datin Phor Li Wei, directors and major shareholders of Ideal Sun City who collective own a 30.51% stake in the group.

The completion of the sales and purchase agreements are expected to take place during the fourth quarter of 2014.

Meanwhile, Ideal Sun City will undertake a private placement of some 42.451 million shares, representing approximately 30% of the group’s issued and paid up capital, to partially fund the acquisitions.

The private placement is expected to be implemented in tranches within six months after receiving relevant approvals. The issue price is yet to be fixed.

But based on an indicative issue price of 50 sen apiece, the private placement is expected to raise gross proceeds of up to RM21.23 million.