KUALA LUMPUR (Nov 29): YTL Land & Development Bhd has proposed to acquire the remaining 30% equity interest in Sentul Raya Sdn Bhd from Keretapi Tanah Melayu Bhd (KTMB) and its wholly-owned subsidiary KTMB (Sentul) Sdn Bhd for RM252.42 million.

It said the proposed acquisition enables it to gain full control of the future business direction of Sentul Raya.

In a filing with Bursa Malaysia today, YTL Land said it has entered into an agreement with KTMB and KTMB Sentul for the proposed acquisition of 2.4 million shares or a 30% stake in Sentul Raya.

"The proposed acquisition also presents an opportunity for the company to consolidate Sentul Raya's earnings in full as YTL Land's wholly-owned subsidiary. The board believes in the favourable prospects of Sentul Raya, which are expected to enhance the future earnings potential of YTL Land and ultimately increase shareholders' value in the company," it added.

The proposed acquisition entails a cash payment of RM190 million and payment in kind of RM62.42 million via 53 units at Sentul Raya's The Fennel project at Sentul East here.

YTL Land said it will fund the cash balance through a combination of bank borrowings and internal funds.

Sentul Raya's ongoing project is The Fennel, which is nearing completion for the first two blocks of four high-rise towers, with the remaining two blocks scheduled for completion in 2017.

Its completed projects are The Capers (condominiums), d6 (retail & offices), d7 (retail & offices), The Saffron (condominiums), The Maple (condominiums), The Tamarind (condominiums) and Sang Suria (condominiums).

Barring unforeseen circumstances, the proposed acquisition is expected to be completed by the first quarter of 2017.

For the financial year ended June 30, 2016, Sentul Raya posted a net profit of RM36.45 million on revenue of RM200.47 million.

YTL Land shares closed unchanged at 57 sen today, bringing a market capitalisation of RM472.63 million.