Iris subsidiary ups Palau Peleiu Resorts stake

KUALA LUMPUR: Iris Corporation Bhd’s subsidiary Iris Land Sdn Bhd is raising its stake in Palau Peleiu Resorts Ltd (PPRL) to 80% to have greater control and supervision over the projects to be carried out in Palau near the Micronesia islands.

Iris said on Tuesday it was buying a 50% stake or 3.33 million shares of PPRL from UK Investment Holdings Ltd for US$5mil (around RM16.38mil) at US$1.50 a share.

Iris said the acquisition would contribute positively to its financial results in the long run.

To recap, on Feb 14, Iris Land had bought 30% of PPRL or two million shares from UK Investment Holdings.

Iris said the investment in the construction and development of villas for resort living in Palau was subject to various risk inherent in the construction industry itself especially in the Micronesian Islands.

UK Investment Holdings would help Iris Land in the construction and development of villas and would receive 5% of any sale secured for the villas built by Iris Land within three years from the execution of the agreement.  

“The acquisition of the sale shares will be financed through internally generated funds and bank borrowings and the breakdown of source of funds have yet to be determined,” said Iris.