KUALA LUMPUR (July 3): Mega First Corp Bhd has acquired a majority stake in a Perak mining company for RM10 million as part of its strategy to grow its limestone manufacturing business.

In a filing with Bursa Malaysia, Mega First said its wholly-owned subsidiary, Rock Chemical Industries (M) Sdn Bhd (RCI), had on June 30 bought 100,000 shares in Perak-based Premier Capacity Sdn Bhd.

Post-acquistion, RCI’s stake in Premier Capacity stood at 101,000 shares or 50.25%, making it the major shareholder in the mining company.

Mega First said the purchase — funded via internally-generated funds — was intended to build up its limestone reserves.

The core businesses of Mega First includes quarrying and manufacturing of limestone-based products, besides power generation and property development.

“The investment in Premier Capacity enables (Mega First) to build up limestone reserves and is in line with the strategy of growing this business segment,” the group said.

Incorporated in 2009, Premier Capacity has a share capital of 201,000 shares worth RM201,000. The miner owns a 116-acre leasehold land in Kampar, 12km from RCI’s existing plant in Gopeng.

The land lease expires in June 2044, said Mega First.

For its first financial quarter ended March 31, 2017 , Mega First’s resources segment — comprising the limestone quarrying and manufacturing business — contributed RM4.43 million in pre-tax profit and RM24.21 million in revenue, representing 10.5% of group pre-tax profit and 11.11% of group revenue.

Mega First’s share price  closed three sen or 0.76% lower at RM3.91 today, with 880,500 shares traded, giving it a market capitalisation of nearly RM1.5 billion.