KUALA LUMPUR (June 22): Bedi Bhd (KL:BEDI) has proposed acquiring two Sabah property development companies from a related party for RM38.82 million cash, as the property developer seeks to strengthen its presence in East Malaysia.

The group entered into agreements with Bedi Development Sdn Bhd (BDSB) to acquire Sejati Sentral (Sandakan) Sdn Bhd for RM17.55 million and FYT Land (KK) Sdn Bhd for RM21.27 million, according to a Bursa Malaysia filing on Monday.

Bedi group managing director and substantial shareholder Kong Chung Vui has interests in the target companies through BDSB. Major shareholders Lim Aik Hoe, Lim Aik Kiat and Lim Aik Fu also have indirect interests in the vendor and target companies through their interests in EXSIM Borneo Sdn Bhd, which controls a 52.5% stake in Bedi.

Bedi said the projects have a combined remaining unbilled and unsold gross development value (GDV) of RM1.13 billion and an estimated gross development profit of RM146.94 million, which are expected to enhance the group's earnings visibility through progressive billings over the next several years.

Sejati Sentral is developing Sejati Sentral, an integrated commercial project in Sandakan with an estimated GDV of RM225.68 million, while FYT Land is undertaking the Bayu Damai Residences and Luna Damai Residences projects in Kota Kinabalu, which have a combined GDV of about RM1 billion.

As at June 3, Sejati Sentral had sold 66 units across its first two phases, representing 70.97% of launched units, while Bayu Damai Residences had achieved sales of 603 units, or 79.13% of total units.

Based on pro forma calculations, the acquisitions would increase Bedi's earnings per share to 3.66 sen from 2.83 sen for the 15-month financial period ended March 31, 2025. However, the group's gearing ratio would rise to 1.36 times from 0.78 times after consolidating the target companies' borrowings.

Bedi intends to fund the acquisition using proceeds from the proposed disposal of a double-storey hypermarket in Sandakan for up to RM46.19 million, which was approved by shareholders in February and is expected to be completed by August.

Pending completion of the disposal, the group may utilise internally generated funds and bank borrowings as interim funding.

Shares in Bedi closed unchanged at 52.5 sen on Monday, valuing the group at RM455.25 million. Over the past one year, the stock has gained 47.9%.