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KUALA LUMPUR (Aug 15): LB Aluminium Bhd is acquiring 20% equity interest in Vistarena Development Sdn Bhd for RM6 million cash, as it seeks to expand into property development.
In a filing yesterday, LB Aluminium said it has signed a conditional share sale and purchase agreement to acquire 400,000 ordinary shares in Vistarena from directors Gan Yu Chai and Lee Kuan Kiow at RM15 per share.
Subsequently, a conditional shareholders’ agreement was also inked between LB Aluminum, Vistarena, its 75%-owner Idaman Sejiwa Development Sdn Bhd, and two vendors who are left with 2.5% stake each post-acquisition.
“The proposed acquisition is a strategic move in view of the group’s plan to diversify into property development, which will enable the group to expand its sources of income,” the filing said.
LB Aluminium added it intends to fund the acquisition with borrowings.
“The purchase consideration was arrived at on a ‘willing buyer-willing seller’ basis, after taking into consideration the net assets of Vistarena as at March 31, 2018, amounting to RM1.7 million,” the company said.
Vistarena, which was set up with an issued share capital of RM2 million, owns lands measuring a combined 5.32 acre in Mukim Petaling which is slated for development of apartments, Rumah Wilayah Persekutuan, and 1Malaysia Civil Servants Housing Programme (PPA1M).
The land is currently charged to AmBank (M) Berhad for banking facilities of RM112.5 million, the filing added.
Shares of LB Aluminium closed 2.5 sen or 4.27% higher at 61 sen yesterday, giving the steelmaker a market capitalisation of RM152.88 million. — theedgemarkets.com
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