KUALA LUMPUR (April 13): Maxim Global Bhd is planning to pay RM271.03 million to acquire properties, including parcels of land, from its major shareholders and directors.

In a filing with Bursa Malaysia on Thursday (April 13), Maxim announced that it is buying four companies — Zapland Property Sdn Bhd, Asiatic Network Sdn Bhd, Brogan Maxim Sdn Bhd and Maxim Realty Sdn Bhd — which collectively hold an 86.89% stake in Maxim Holdings Sdn Bhd (MHSB), a private vehicle that owns residential and commercial land in Taman Desa, Petaling Jaya and Rawang, plus an affordable apartment development project.

The property developer has also proposed a two-to-one share consolidation exercise to be undertaken after the completion of the proposed acquisitions, the bourse filing showed.

The vendors — who collectively control 62.44% in Maxim — include Maxim’s managing director and major shareholder Datuk Seri Gan Seong Liam and his wife Datin Seri Loh Foong Ping, their son Gan Kuok Chyuan, who is also Maxim’s deputy MD, and Maxim’s non-independent and non-executive director Chai Chang Guan.

Seong Liam indirectly holds 27.05% in MHSB, while Loh has a 9.05% stake and Kuok Chyuan has 18%; Chang Guan has a 27.05% stake in MHSB. Except for Loh, all three are on Maxim's board of directors.

It is also purchasing the remaining 13.11% in MHSB from Sanlens Sdn Bhd — a private limited company.

Maxim will fund the acquisition by the issuance of 217.39 million new shares, plus cash RM69 million.

Under the proposed acquisitions, Maxim will assume the amounts that the four companies owe their directors and outgoing creditors, which totalled RM152.03 million.

On completion of the acquisitions, the vendors' collective interest in Maxim could rise to between 67.79% and 67.99%. The acquisitions will not trigger any obligation to undertake a mandatory takeover offer as they already have statutory control over the group.

MHSB's real estate assets include land bank and residential apartments in Taman Desa, a parcel of land on Jalan San Ah Wing within the Golden Triangle, as well as plots in Alam Damai, Cheras and Taman Setia Jaya, Rawang.

“The proposed acquisitions are being undertaken as part of the group's business strategy to expand its property development business in order to improve its financial performance in the future,” said Maxim.

The proposed consolidation would shrink its share base from 1.47 billion shares at 21.5 sen apiece as at April 3, to 735.03 million consolidated shares at a theoretical adjusted reference price of 43 sen per share.

Maxim's share price closed one sen or 4.35% lower at 22 sen on Thursday, valuing the group at RM275.69 million. Its share price has rallied by 22.22% since Jan 13.