This article first appeared in The Edge Financial Daily on December 5, 2017

KUALA LUMPUR: UOA Development Bhd is buying a further 35% stake in Everise Project Sdn Bhd from Kaginic Assets Holdings Sdn Bhd for RM159.54 million, which would bring its total shareholding in the property development company to 74%.

UOA Development said Kaginic Assets had made an offer to dispose of its entire interest in Everise and UOA, as an existing major shareholder, had accepted the offer.

“Everise will continue its existing activities,” UOA Development told Bursa Malaysia yesterday.

It yesterday entered into a share sale agreement (SSA) with its 39%-owned associate Everise and Kaginic Assets for the stake acquisition.

The proposed buy involves Kaginic Assets’ 105,000 shares worth RM152.07 million and 7.46 million redeemable preference shares at RM7.46 million.

As at Sept 30, 2017, Everise has bank borrowings amounting to RM26.3 million.

UOA Development said the acquisition will be satisfied by cash from internal funds. The purchase consideration will be paid within 30 days from the date of the SSA.

“The acquisition is expected to contribute positively to the earnings of UOA Development in the future with the increase in net assets of approximately 1.7% of the group’s net assets.

“Upon Everise becoming a subsidiary of the group, the group’s net assets is expected to increase by RM67.95 million, representing 1.7% of the group’s net assets as at Sept 30, 2017,” it added.