KUALA LUMPUR: Local tile manufacturer Yi-Lai Bhd plans to diversify into property development, following a proposed reverse takeover (RTO) of the company by Penang-based property developer Aspen Vision Group.
Yi-Lai announced to Bursa Malaysia that it had entered into a heads of agreement (HoA) with Aspen Vision Group Sdn Bhd and Setia Batu Kawan Sdn Bhd for the proposed acquisition of Aspen Vision All Sdn Bhd for RM550mil.
The company said the move would enable existing shareholders to participate in a “new, viable and profitable core business in property development” through the Aspen Vision Group.
“The diversification of the core business of Yi-Lai into property development will be a synergistic downstream fit for Yi-Lai’s existing tile manufacturing business,” it said.
It added that the proposed acquisition would result in a significant change in business direction or policy of Yi-Lai and also result in the RTO of the company.
The purchase consideration, it said, would be settled via the issuance of 450 million new ordinary shares of 50 sen each in Yi Lai at an issue price of RM1 each, and the balance RM100mil in cash.
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