KUALA LUMPUR (Oct 28): IRIS Corp Bhd is acquiring 3.33 million shares or a 50% stake in Palau Peleliu Resorts Ltd from UK Investment Holdings Ltd for US$5 million (RM16.39 million) or US$1.50 per share.

In a filing with Bursa Malaysia today, IRIS said its 60%-owned subsidiary IRIS Land Sdn Bhd had signed an agreement with UK Investment for the proposed acquisition.

The share purchase will increase IRIS’ stake in Palau Peleliu Resorts to 80%, making it a subsidiary.

IRIS had on Feb 20, 2014 bought a 30% stake or 2 million shares in Palau Peleliu Resorts for US$2 million or US$1 per share.

Palau Peleliu Resorts is involved in the development, management and construction of resorts, villas, residential and commercial buildings in the Republic of Palau, an island country in the western Pacific Ocean and a United States Associated State.

IRIS said that the acquisition will enable the group to have greater control and supervision over the development project to be implemented in Palau, adding that it will contribute positively to its earnings in the long run.

Under the agreement, IRIS will make payment – through internal funds and bank borrowings – in four tranches, with the deposit of 5% or US$250,000 to be made to UK Investment upon the execution of the agreement.

IRIS said the subsequent three payments of US$750,000, US$1 million and US$3 million will be paid to UK Investments in six, 12 and 24 months, respectively, from the date of the execution of the agreement.

It added that UK Investment agreed that nothing will be deemed owing or accrued to its book, in the event that IRIS Land is not able to secure the sale of any business within three years.