Matrix Concepts says major shareholders to inject Selangor property business

• “The proposed acquisitions are expected to enable the group to achieve elevated strategic synergistic benefits in complementary business focus and enhanced geographical track record.”

KUALA LUMPUR (April 8): Matrix Concepts Holdings Bhd (KL:MATRIX) said on Tuesday a group of shareholders, led by its group executive deputy chairman, is injecting parts of their property business to provide a foothold for the company in Selangor.

Agreements have been signed for Matrix to acquire a 50% stake in Horizon L&L Sdn Bhd, the entire equity stake in Exoland Property Management Sdn Bhd, and 30% of Horizon L&L (SEL) Sdn Bhd for RM77.9 million cash, the company said in an exchange filing.

The injection will pave the way for Matrix — which has established itself in Negeri Sembilan, Johor and Kuala Lumpur — to enter Selangor’s property development market, the company said.

“The proposed acquisitions are expected to enable the group to achieve elevated strategic synergistic benefits in complementary business focus and enhanced geographical track record,” Matrix said.

The proposed acquisitions are deemed related-party transactions, given that certain vendors are shareholders of Matrix and part of the board or management or related to an interested party.

The sellers include group executive deputy chairman Datuk Seri Lee Tian Hock, who controls a 32.38% stake in Matrix, chairman Datuk Mohamad Haslah Mohamad Amin, and chief financial officer Tan Say Kuan.

The target companies are themselves in the midst of acquiring RM44.02 million worth of land. Completion of the land acquisition has been included as a condition precedent for the equity purchase to protect Matrix’s interest, it said.

All three companies are profitable, with combined net profit of nearly RM12 million and revenue of over RM180 million.

Matrix said it will finance the acquisitions with internally generated funds. As at end-December 2024, Matrix’s cash and cash equivalents totalled RM254.11 million, while total borrowings stood at RM521.76 million.

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