KUALA LUMPUR: Atta Global Group Bhd's wholly-owned subsidiary Park Avenue Construction Sdn Bhd has entered into three separate sales and purchase agreement to acquire three adjoining lots of land amounting to 260,988 sq ft in Barat Daya, Pulau Pinang, for RM28mil.
it said in a filing with Bursa Malaysia the purchase consideration will be satisfied via the issuance of 114.29 million new shares in Atta at an issue price of 24.5 sen apiece.
The group said it would issue 69.39 million and 44.9 million shares to the vendors - Limbo Ngan Maung Sdn Bhd and Utopia Span Sdn Bhd - respectively.
According to the statement, the proposed acquisition is part of Atta Group's expansion plan to increase its land bank at strategic locations with growth potential.
The group said it aims to scale up its property development segment portfolio to secure additional revenue stream in light of falling contribution from its manufacturing segment.
"The property development segment, which represented RM71.56mil in revenue or approximately 59.7% of the overall revenue that resulted from ATTA Group’s diversification of its business on Jan 19, 2018, had shown an uptrend in revenue for the past three financial years, proving the viability of the segment," it said.
