Country Heights asset injection by chairman downsized to RM517m

KUALA LUMPUR (Dec 21): Country Heights Holdings Bhd has announced changes to the asset injection exercise from executive chairman and controlling shareholder Tan Sri Lee Kim Yew's private investment holdings that was first announced in October.

Notably, Country Heights has downsized the asset acquisition to a total of RM517 million, from RM544 million previously.

The company is calling off the acquisition of a 5.62-acre land in Hulu Langat for RM42 million from Bee Garden Holdings Sdn Bhd, and another 2.82-acre land in Kajang for RM21 million from Castlepark Sdn Bhd.

This is as the parties have been unable to agree and finalise the terms of the proposed transactions, it said.

Additionally, Country Heights opted to acquire the entire stake in Mines Wonderland Sdn Bhd for RM400 million, instead of buying the 37.98-acre Mines Waterfront land directly from the latter for the same price as proposed previously.

It also proposed to acquire 100% of Hasil Nostalgia Sdn Bhd (HNSB) for RM28 million.

HNSB owns eight serviced apartments in South City. It is also a 47.62% shareholder of Fresh Avenue Sdn Bhd (FASB), with the remaining 52.38% held by Country Heights International Sdn Bhd (CHISB).

"It is the intention of HNSB and CHISB that the shares held by CHISB will be cancelled by way of capital reduction after which, HNSB will be the sole shareholder of FASB," Country Heights said.

All the new proposed acquisitions will be satisfied via issuance of new Country Heights shares at RM1.4525 apiece.

The new proposal on HNSB's takeover replaces an earlier proposal for Country Heights to acquire just two floors at Mines Business Park from FASB. FASB also owns other properties in Mines Business Park, as well as nine parcels in Country Heights plus 55 apartment units in Sungai Besi.

It cited "changes to the structure of the transactions following discussions between the company and the vendors" as the reason behind the new arrangements.

Subsequently, Country Heights has inked deeds of revocation to revoke four heads of agreements (HoAs) in line with the new proposals.

Meanwhile, two HoAs inked in October 2021 will still take effect. For one, Country Heights proposed to acquire a 4.325-acre land in Sungai Besi from Mines Resorts Sdn Bhd (in liquidation) for RM73 million.

The other HoA that will proceed is the acquisition of 29.63% in Country Heights Health Tourism Sdn Bhd — which carries the GHHS Healthcare brand — for RM6 million, to be satisfied via new Country Heights shares at RM1.20 apiece.

Shares of Country Heights settled unchanged at RM1.45, giving it a market capitalisation of RM399.78 million.

Edited by Lam Jian Wyn

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