Hua Yang hopes to unlock Magna Prima's Lai Meng School land value in next two years

KUALA LUMPUR (June 8): Hua Yang Bhd aims to realise the potential of its 30.95% acquisition of Magna Prima Bhd at a total of RM190.3 million by unlocking the latter's value in the former Lai Meng School land on Jalan Ampang in the next two financial years ending March 31, 2020.

Hua Yang's immediate focus is assisting Magna Prima on the operational side, following the latter's resubmission of plans to increase plot ratio and change the component for approval of the 2.6-acre land near Kuala Lumpur Convention Centre, Hua Yang chief executive officer Ho Wen Yan said.

"Magna has five parcels of good land in Kuala Lumpur. We are working together with the new shareholders ... hoping to unlock the value of these parcels of land, and realise the investments for Hua Yang.

"We also hope that the Lai Meng land project would take off in the next financial year or in two years, as we also want to realise the potential of our investment.

"It is a big investment for us, so we hope there is something exciting in the near future, but I cannot promise anything for now," he added.

"I am confident of the value of the project. They (Magna Prima) have got approval, but it is (looking at) market condition. The purpose for the development is that Magna Prima wants to realise [the] full value of it, so they want to wait for [a] good time before launching the prime asset," Ho said after Hua Yang's extraordinary general meeting today. 

In the meeting, shareholders gave nod to the acquiring of an additional 20.12% equity in Magna Prima for RM123.7 million, after the Jan 25 purchase of 10.84% at RM66.6 million, making the latter an associate of Hua Yang.

Asked as to when the two companies would launch its first joint venture project, Ho, who has an executive directorship post in Magna Prima, said both groups are looking for new landbank. 

"Once we see something that both can enter into, we can kick off. There is no timeline, but our immediate plan is to look at [the] communication and execution needs of Magna Prima, which is where our strength lies," he said.

At 12.30pm, Hua Yang rose one sen or 0.94% to RM1.07, with 137,000 shares done, for a market capitalisation of RM373.12 million.

Meanwhile, Magna Prima remained unchanged at RM1.53, with 8,000 shares transacted, for a market capitalisation of RM508.6 million. — theedgemarkets.com

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