KUALA LUMPUR (Dec 4): Binasat Communications Bhd (KL:BINACOM) has proposed to undertake a private placement to finance the acquisition of several properties.
In a bourse filing on Wednesday, the company said the acquisitions include three commercial properties within the Sazean Business Park in Kota Bayuemas, Klang, for RM8.34 million.
Binasat has also entered into an agreement to acquire 241 units of fully-furnished proposed hotel suites in Empire City, Damansara Perdana, for RM73.54 million.
These acquisitions, the company said, marks its shift into property investment, property development and construction, alongside its existing telecommunications-focused operations.
Binasat said the Klang properties will be leased under long-term agreements to generate stable rental income.
Meanwhile, the Empire City acquisition involves a combination of cash and share issuance at 21 sen per share, with construction on the project slated for completion by March 2026.
Touching on the rationale behind its move, Binasat said the company needs to reduce a reliance on its telecommunications business amid mounting operational costs. The property investments are expected to provide the group with recurrent income streams and potential capital gains.
On the private placement, the company said it will entail the issuance of up to 128.14 million shares, representing not more than 30% of the enlarged issued share capital after the completion of the exercise. The shares will be issued to third party investors at an issue price to be determined later.
Binasat’s share price closed unchanged at 22 sen on Wednesday, valuing the company at RM86.42 million.