KUALA LUMPUR (Dec 28): Ewein Bhd has proposed to acquire 4.43 acres of freehold land in Bandar Tanjong Pinang, Penang, for RM162 million, for a possible residential and commercial property development project.

In a statement today, the group said its 60%-owned subsidiary, Ewein Zenith II Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Consortium Zenith BUCG Sdn Bhd (CZBUCG) to acquire all the freehold land in Section 1, Bandar Tanjong Pinang free from all encumbrances and with vacant possession.

The remaining 40% stake in Ewein Zenith II is held by CZBUCG.

A filing with Bursa Malaysia showed that a sum of RM16.2 million shall be deposited as refundable deposit upon the execution of the SPA, and a second payment of RM32.4 million, equivalent to 20% of the purchase price, shall be paid upon issuance of the original title in the name of Ewein Zenith II.

The remaining sum of RM113.4 million shall be paid within 30 business days of issuance of the original title.

The group added that the proposed land acquisition will be financed through a combination of internal funds and bank borrowings.

Deputy chairman and group managing director Datuk Ewe Swee Kheng said the proposed acquisition is in line with the group' s strategy to increase its land bank in order to expand the group's revenue base particularly in the property development division.

"In light of the strategic location of the land, which is in a matured and established prime area for residential and commercial purposes, the board opines that the said land is strategic for the group's future development," he said in the statement.

Ewe added that the proposed acquisition is expected to be completed in the first half of 2016.

The proposed acquisition is subject to shareholders' approval at the forthcoming extraordinary general meeting.

The group is currently jointly developing the RM800 million City of Dreams condominium project in Bandar Tanjong Pinang with CZBUCG.

Ewein shares closed unchanged at RM1.28 today, giving it a market capitalisation of RM270 million.

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