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KUALA LUMPUR (Sept 12): Shipowner and charterer Hubline Bhd is acquiring a 75% stake in property investment company Absolute Privilege Sdn Bhd for RM16.37 million to secure tenancy for its dry bulk operations.
In a filing with Bursa Malaysia yesterday, Hubline said it had entered into an agreement with Absolute Privilege’s director Pau Chiong Ching for the acquisition of all of his 1.5 million shares in the company, representing a 75% equity interest, for RM16.37 million.
Absolute Privilege’s principal assets are two pieces of land in Miri, Sarawak, occupying 8,218.2 sq m and 6,074 sq m, worth RM21.6 million and RM16.4 million, respectively.
Hubline said it is acquiring the stake in the company because the warehouse and approximately 30% of the properties’ office space are presently tenanted by its subsidiaries for business operations in dry bulk shipping.
“The space where the warehouse is presently situated includes a wharf along the Miri River which is essential for the smooth operation of the dry bulk business to undertake repairs and similar duties.
“Furthermore, as Pau is seeking to dispose of his shares in Absolute Privilege, there is a risk that the future owner of the stake will discontinue or not extend the tenancy of the properties upon its expiry.
“With the current shortage of similar properties which match our specific requirements in the area, Hubline has decided to take the majority stake in Absolute Privilege,” Hubline added.
This article first appeared in The Edge Financial Daily, on Sept 12, 2019.
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