KUALA LUMPUR (Aug 10): Kimlun Corp Bhd said today it is acquiring 49% equity interest in property outfit Bayu Damai Sdn Bhd for RM40 million cash from Bayu Damai Equity Sdn Bhd (BDESB).

Bayu Damai is in the midst of acquiring nine plots of land in Alam Damai here measuring 43.46 acres for RM95 million.

It plans to undertake a mixed development on-site in 2022, with gross development cost and value of RM1.94 billion and RM2.2 billion respectively.

In a filing today, Kimlun said its wholly-owned unit Kii Amber Sdn Bhd has inked a share subscription agreement with Bayu Damai and BDESB for the stake acquisition.

BDESB's joint shareholders are Yap Wei Sam and Puan Sri Teng Siew Kean, who is the spouse of Melati Ehsan Holdings Bhd founder Tan Sri Yap Suan Chee.

Kimlun said the subscription sum will be satisfied wholly in cash from internally generated funds.

"The proposed share subscription provides an opportunity for Kimlun Group to increase the size of its land bank in prime and matured locations within the developed area of Kuala Lumpur.

"Given the location of the land in a prime and matured housing estate, the management is confident that the proposed development will be well received by the general public," it said.

Kimlun's share price fell half a sen or 0.67% to 74.5 sen, valuing the group at RM253.15 million.