KUALA LUMPUR (Feb 23): Latitude Tree Holdings Bhd is buying the remaining 15% of Grob Holz Co Ltd which it does not own, from Konsortium Kontrek Sdn Bhd, in order to fully consolidate the wooden furniture parts and components maker’s earnings and further capitalise on its growth potential.

In a filing with Bursa Malaysia today, Latitude Tree said the price for the 15% stake in Grob Holz was RM2.53 million. The vendor, Konsortium Kontrek, is 50% owned by Yek Siew Long, who also has a 15.03% stake in Latitude Tree.

The group will use internally-generated funds to pay for Grob Holz shares, and expects the transaction to be completed by the first quarter of this year.

Grob Holz is involved in the manufacture and sale of dried sawn timber, solid laminated board, wooden furniture parts and components, said Latitude Tree.

“Latitude Tree anticipates moderate growth in the manufacturing activities of the wooden furniture sector, in which Grob Holz operates. The board of Latitude Tree also believes that Grob Holz is able to maintain its competitive edge, as their products are continuously improved on over time,” said Latitude Tree of the subsidiary’s prospects.

While it said that Grob Holz in general has a positive prospect, the volatility in the global economy could potentially undermine this positive expectation.

Latitude Tree shares inched down by 0.58% today to close at RM6.83 apiece. It had a market capitalisation of RM663.93 million.