KUALA LUMPUR (April 14): JKG Land Bhd is set to boost its presence in Kedah with the acquisition of the remaining 50% equity interest in Inno Alliance (M) Sdn Bhd (IASB), which owns a plot of land in Kulim, Kedah.

In a stock exchange filing today, JKG said that it together with its wholly-owned subsidiary Keladi Kulim Sdn Bhd are acquiring the stake for RM11 million from Datuk Beh Heng Teong, Datuk Beh Huck Lee, Oriental Fleet Sdn Bhd (OFSB) and Beh Heng Seong Sdn Bhd (BHSSB).
 
Upon completion of the acquisition, IASB will become its wholly-owned subsidiary.

IASB’s land measures 47.63 acres (19.28ha) which is planned for a mixed development comprising low- and medium-cost houses, semi-detached houses as well as several shop units.  

JKG said that the proposed acquisition is part of the group’s objective and long-term plan to invest in strategic landbanks or companies with landbanks in strategic areas and have future development potential.

“IASB’s landbanks are predominantly located within Kedah state and this represents an opportunity for JKG to further strengthen its position and market presence in Kedah and gain meaningful exposure to the future upside potential of these landbanks,” it said.

JKG said that the purchase consideration was arrived at on a willing- buyer willing-seller basis, after taking into consideration, among others, IASB’s audited net assets as at Jan 31, 2016, the group’s evaluation on IASB’s land bank and its development potentials as well as its future earnings and prospects.

The proposed acquisition will be funded through internally-generated funds.

“The proposed acquisition is expected to contribute positively to the group’s future revenue and earnings and enhance shareholders’ value in the long term,” it added.

JKG’s share price closed 4% lower at 12 sen, valuing the group at RM91 million.