Hua Yang buys 10.8% stake in Magna Prima for RM66.6mil

This model represents Magna Prima

KUALA LUMPUR: Hua Yang Bhd has acquired 10.84% equity interest in construction and property development firm Magna Prima Bhd (MPB) for RM66.6mil, or RM1.85 a share, through a direct business transaction on Wednesday.

Hua Yang, which is also a property developer based in Selangor, told Bursa Malaysia that the purchase was part of the group’s objective to invest in strategic landbank or companies which hold such landbank located in areas which were easily accessible and surrounded by ready amenities.

“MPB’s land banks are predominantly located within the Klang Valley and this represents a further opportunity for Hua Yang to collaborate with MPB in order to strengthen its position, market presence in the Klang Valley and gain a meaningful exposure to future upside potential of these landbank,” it said.

According to Hua Yang’s 2016 annual report, projects in the Klang Valley accounted for 46% of the group’s revenue in the 12 months ended March 31, 2016.

The price of RM1.85 per share was 19 sen sen above Tuesday’s closing price.

On Bursa Malaysia, Magna Prima’s share price surged to a record high of RM1.68 in intra-day trade on Wednesday while the large block of shares was traded off market.

At RM1.68, the price was the highest since mid-1997 before the onset of the Asian financial crisis.

Magna Prima shares fell 3 sen to close at RM1.63 on Wednesday.