Jiankun buys land in Melaka for RM26m to undertake commercial development

• Upon completion of the acquisition, the group said it will have an aggregate landbank of 30.54 acres (123,591 sq metres).

KUALA LUMPUR (April 18): Jiankun International Bhd’s unit is acquiring a parcel of leasehold land in Klebang, Melaka for RM26 million, which will be partially funded through a private placement.

The wholly-owned unit, Key Success Development Sdn Bhd (KSDSB), is purchasing the 40,469 sq metre-land from Cash Support Group Sdn Bhd to undertake a commercial development comprising retail, serviced apartments and office units, Jiankun said in a bourse filing on Monday (April 17).

“Given the strategic location of the land in Klebang, Melaka which is located close to the Klebang beach and has good accessibility to a major highway — the North-South Expressway — the board views that the development of the land, as and when it materialises, will contribute positively to the group’s financial performance,” said Jiankun. .

Upon completion of the acquisition, the group said it will have an aggregate landbank of 30.54 acres (123,591 sq metres).

Jiankun said RM14 million out of the RM26 million purchase consideration will be funded via a private placement, with Eclipse International Sdn Bhd subscribing for 70 million new shares, representing 19.42% of the total number of issued shares in Jiankun as at April 13.

As at April 13, the issued share capital of the Jiankun is RM76.18 million, comprising 360.51 million shares.  

Eclipse International is principally involved in advertising, events and exhibitions management, training solutions, general contractors and general trading.

Jiankun said the remaining RM12 million of the purchase consideration will be funded via the group’s internally generated fund and bank borrowings.

On Monday, Jiankun also announced  a share issuance scheme (SIS) of up to 15% of the total number of issued shares of Jiankun to eligible directors and employees of the group.

The group said it intends to terminate the existing SIS which took effect on July 9, 2021 for a period of five years.

“The company has 5.27 million existing SIS options (representing approximately 1.46% of the issued shares as at April 13) which may be granted and exercised pursuant to the maximum allowable amount under the existing SIS,” Jiankun said.

The SIS will be effective after the termination of the existing SIS, and will be in force for a duration of five years, it said.

“The group intends to undertake the proposed SIS in place of the existing SIS such that the group has a new avenue to continue rewarding the eligible persons and motivate them to achieve better performance in the near future,” Jiankun said.

It added that the company intends to utilise the proceeds arising from the exercise of the SIS options for the working capital of the group.

“The proceeds to be utilised for working capital include, amongst others, purchase of raw materials and general administrative expenses — staff costs, utilities and professional fees,” Jiankun said.

The group expects the proposals to be completed by the fourth quarter of 2023.

TA Securities has been appointed by Jiankun to act as the principal adviser for the proposals and the placement agent for the private placement.

Jiankun had earlier also completed a private placement on Dec 14, 2022, raising proceeds of RM18.56 million to fund the One Le Tower project for which the group is the main contractor.