KUALA LUMPUR (Jan 29): Majuperak Holdings Bhd plans to acquire a 51% stake in Nexusbase Development Sdn Bhd from Sloane Infinity Asia Pacific Sdn Bhd for an indicative RM12.5 million, a move which will mark Majuperak’s first property development venture outside Perak.
According to Majuperak’s Bursa Malaysia filing and a separate press release by the property developer today, Nexusbase is developing the RM125 million Nexus Residences @ USJ Subang West property project in the Klang Valley.
In the Bursa filing, Majuperak, which is a 50.11%-owned associate of Perbadanan Kemajuan Negeri Perak or Perak State Development Corp, said: "The proposed acquisition represents a strategic investment for Majuperak to enable its group to be entitled to future income streams arising from the property development project.
“Our (Majuperak's) board is of the view that the proposed acquisition is expected to improve the financial performance of the group and increase shareholders’ value in the long term,” Majuperak said.
Majuperak said today the company on Wednesday entered into a term sheet with Sloane Infinity to acquire the 51% equity interest in Nexusbase.
Pursuant to the term sheet, Majuperak and Sloane Infinity intend to enter into a definitive agreement for the proposed acquisition, according to Majuperak.
In the separate press release, Majuperak said that pursuant to the term sheet, Majuperak and Sloane Infinity will have an exclusivity period of four months to enter into the definitive agreement.
Majuperak group chief executive officer (CEO) Nizran Noordin said in the statement that the proposed acquisition marks Majuperak's foray in the property market outside Perak, and that the move enables the company to tap into vast opportunities in the Klang Valley.
"Given its (Nexus Residences @ USJ Subang West) strategic location, coupled with good accessibility and attractive facilities and amenities, the development represents significant potential and value to enable Majuperak to expand our foothold in the property sector.
“Moving forward, we will continue to seek out viable opportunities to collaborate with other property development companies for potential projects. Majuperak is also looking to create additional streams of income by expanding into new avenues of business, such as facility management, to complement and add further depth to our core business, strengthening our long-term prospects,” he said.
At Bursa’s 12.30pm break today, Majuperak’s share price was 1.5 sen or 3.61% lower at 40 sen, which valued the group at about RM113.31 million.
Majuperak’s latest reported number of issued shares stood at 283.27 million.