KUALA LUMPUR (Dec 22): Property development and construction group Jiankun International Bhd is acquiring 99.99% equity interest in Penang-based Oriental Link Properties (M) Sdn Bhd (OLPSB) from the privately held property development company's two directors Lee Khoon Eng and Lee Phaik Choo for RM9.5 million. Khoon Eng currently holds a 99.2% stake in OLPSB and Phaik Choo 0.79%, while the remaining 0.01% is still being held by its other director Ong Cheng Tat.
Jiankun said the proposed acquisition is expected to provide the group an opportunity to venture into property development in the northern part of Peninsular Malaysia and contribute positively to the group's revenue and profitability.
In a filing with Bursa Malaysia on Friday, Jiankun said it has entered into a conditional share sale and purchase agreement (SSPA) with Khoon Eng and Phaik Choo for the proposed acquisition.
The proposed acquisition will be funded via internal funds, it added.
OLPSB is currently developing Panchor Sanctuary Garden, a 7.58-acre residential development in Nibong Tebal, Penang, in a joint venture with the owner of the land. The project has been granted a development order until Jan 31, 2024 and an approved building plan until April 16, 2024.
OLPSB is also the owner and developer of a commercial project being developed on Lot 334 Jalan Paboi, as well as a piece of land in Jalan Kampung Bukit, Bayan Lepas.
Jiankun said the proposed acquisition is expected to contribute positively in enhancing the group’s overall growth prospect. Through the acquisition of OLPSB, the group may start the development of the Panchor Sanctuary Garden project in the third quarter of 2024.
In a separate statement, Jiankun elaborated that Panchor Sanctuary Garden boasts a gross development value of RM72.69 million, with a gross development cost of RM54.54 million.
The proposed acquisition is not subject to the approval of Jiankun shareholders or other relevant authorities. Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by Feb 20, 2024, said Jiankun.
Shares in Jiankun closed unchanged at 18 sen on Friday, giving it a market capitalisation of RM67.86 million.