Ideal United Bintang boosts venture into property segment

GEORGE TOWN (July 30): Heavy machinery trader Ideal United Bintang Bhd (IUBB) enhanced its venture into property development with the acquisition of a 31% stake in I-Platinum Sdn Bhd at a cost of RM306,900.

In a filing with Bursa Malaysia yesterday, IUBB said the acquisition was to boost its investment into the property development sector as I-Platinum had a joint-venture with UDA Holdings Bhd to develop two parcels of land on Jalan Seri Tanjung Pinang, Penang Island.

The joint venture with UDA involves the development of an affordable home project with a gross development value of RM925 million, said IUBB, adding that it was in line with the state government’s policy.

According to the share sale agreement, IUBB would acquire 310,001 ordinary shares of RM1 each of I-Platinium’s total issued and paid up share capital from two individuals, Datuk Ooi Kee Liang and Datin Phor Li Wei who held 40.5% each.

Upon completion of the acquisition, I-Platinum would become a subsidiary of IUBB, which is 50% plus one share owned by the company. The estimated time frame for the acquisition is within one month from yesterday.

The acquisition would be satisfied in cash by internally generated funds, IUBB added.

“The acquisition does not entail different risks other than those applying to the existing business of IUBB being property development, which includes, inter alia, general business risks in relation to the industry, impact of government policies and regulations on the industry, competition and dependence of key personal,” it said, adding that the acquisition will not have any effect on the share capital or substantial shareholders’ shareholdings.

“It is not expected to have any material effect on the earnings per share, net assets per share and gearing of IUBB for the year ending Dec 31, 2015,” it stated.