KUALA LUMPUR (April 28): Property group MKH Bhd’s (KL:MKH) wholly owned subsidiary, Serentak Maju Corporation Sdn Bhd, has proposed to acquire a piece of freehold land in Semenyih for a cash consideration of RM42.21 million.

The land, which will be acquired from investment holding and oil palm cultivation listed company Inch Kenneth Kajang Rubber Public Limited Company (KL:INCKEN), spans approximately 6.0323 hectares and is located at Semenyih, Selangor with access through the main Jalan Bangi Lama road, according to a filing with Bursa. 

It is currently planted with oil palm trees.

MKH plans to undertake a commercial development on the land with an estimated gross development value of approximately RM170 million.   

Upon the execution of the sales and purchase agreement, MKH will pay a consideration of RM21.1 million, where RM19.84 million will be paid to Inch Kenneth Kajang, while RM1.27 million, being 3% of the purchase price, will be placed with its solicitors as a retention sum for Real Property Gains Tax. 

The sum of RM17.6 million will be paid within 14 days after the application to convert the land's use to "commercial" is submitted to the land office. Meanwhile, the remaining RM3.5 million will be held by MKH’s solicitors for the land conversion premium. 

MKH said that it plans to fund the land acquisition through a combination of internally generated funds and bank borrowings.

The group added that the proposed acquisition will not have any material impact on the consolidated net assets and gearing of MKH for the financial year ending Sept 30, 2025 (FY2025).

“The proposed acquisition will provide an opportunity for the group to further expand and leverage on the group’s expertise and success in property development in Selangor. The proposed residential and commercial development on the land augurs well for the group’s future growth and earnings prospects,” said MKH in the filing.
 
At the closing bell, MKH shares were up one sen or 1% at RM1.01, valuing the group at RM592 million. 

Shares of Inch Kenneth Kajang were half a sen or 1.4% lower at 36.5 sen, giving the group a market capitalisation of RM154 million.