KUALA LUMPUR (July 4): JMR Conglomeration Bhd has expanded its landbank in Seberang Perai Tengah, Penang through subscription of an additional 4.49 million new shares in its subsidiary TAG Steel Holdings Sdn Bhd (TSH) for RM4.49 million.

TSH currently owns a 26,657 sq m piece of freehold land in Seberang Perai Tengah, Penang, near the Autocity, Juru, which is expected to be developed into a mixed development project.

In a filing with Bursa Malaysia today, JMR said the subscription is in line with its strategy to acquire and expand its existing landbank in strategic locations with high development value, in order to sustain its business as a property developer.

"The subscription will also provide a platform to strengthen the group’s property development activities within the Seberang Perai Tengah and nearby areas where the group has existing land banks.

"Given the strategic location of the land, the group believes the subscription will contribute positively to the group’s future growth plan and earnings' prospect, moving forward," the filing added.

JMR said the subscription was satisfied via a combination of RM424,000 cash from its internal funds, and RM4.07 million by setting off against the amount owed to it by TSH.

The subscription has resulted in the dilution of JMR's stake in TSH of 85.71% to 64.29% of the enlarged issued shares of TSH of 7 million shares. JMR had acquired 5,999 shares and one share on Jan 29, 2016 and Dec 27, 2017 respectively.

JMR shares closed down 3 sen or 2.94% at 99 sen today, with 28,500 shares done, bringing a market capitalisation of RM125.52 million.