MYEG to acquire strata offices at Empire City for RM155.3 million

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KUALA LUMPUR (May 8): My EG Services Bhd (MYEG) has proposed to acquire 22 stories of stratified parcels in the 45-storey Iconic Office (Block N) at Empire City @ Damansara, for total consideration of RM155.3 million.

In a statement today, MYEG (fundamental: 3.0; valuation: 1.1) said it has entered into 22 conditional sale and purchase agreements with Cosmopolitan Avenue Sdn Bhd, the vendor, for the acquisition.

Out of the total cost of RM155.3 million, the group said RM46.6 million will be financed by internally generated funds, while the balance RM108.7 million will be funded by external borrowings.

MYEG said the proposed acquisition will increase its gearing ratio to 72% from 10%, based on its audited financial results as at June 30, 2014.

“The proposed acquisition facilitates the company’s plans to centralise its operations and relocate all employees under one roof to improve efficiency and operational productivity,” said MYEG.

The group expects to complete the acquisition in the fourth quarter of 2015.

MYEG gained 7 sen or 2.8% to RM2.60, giving it a market capitalisation of RM3.04 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)