KUALA LUMPUR (Oct 17): Amtel Holdings Bhd has proposed to acquire 100% equity interest in property development outfit Mewah Amanjaya Sdn Bhd (MASB) for a cash consideration of RM3 million.

In a filing with Bursa Malaysia today, Amtel, a telecommunications management company, said it had entered into an agreement with Doh Jee Chai, Doh Tee Leong, Doh Jee Ming, Lee Hong King and Doh Neng Chiong to acquire 250,000 ordinary shares representing the entire equity interest in MASB.

“The proposed acquisition provides certainty and an immediate entry into property development for Amtel as approvals for the development has been obtained as at the date of the agreement," said Amtel.

MASB is primarily involved in property development. It is currently in a joint development with Cortes Sdn Bhd, to undertake residential development on a land measuring approximately 1.24 hectares in Damansara.

The housing project has approximately RM30 million in gross development value (GDV). It will comprise three units of 3-storey bungalow houses, 22 units of 3-storey semi-detached houses, 12 units of townhouses and infrastructure such as an independent sewerage treatment plant and a TNB substation.

As at the date of the announcement, Amtel said the development order for the project had been approved by Subang Jaya Municipal Council via a letter dated Nov 22, 2011.

Shares of Amtel closed 4.5sen higher at 80.5 sen today, with only 1,000 shares done. It has a market capitalisation of RM37.45 million.