MALAYSIAN Resources Corp Bhd (MRCB) is looking at increasing its stake in UDA Holdings Bhd subject to the board’s approval, said MRCB group managing director Shahril Ridza Ridzuan.
He said the proposed move was an option to improve the company’s property business.
“It is an available option. We are always looking at ways and opportunities to maximise our property business,” he said after a media briefing on Suasana Sentral Loft condominium project at its sales office in Kuala Lumpur yesterday. “We will make an announcement as and when we are required to do so. At this stage, there is nothing on the table yet.”
Asked when MRCB planned to hold formal discussions with the relevant parties, he said: “There is no timeframe. The process takes time. It will only happen after due processes are completed at MRCB.”
It was earlier reported that MRCB planned to acquire an additional 30% stake in the property developer, which would trigger a mandatory general offer for the remaining shares it does not already own.
Currently, MRCB has a 25% shareholding in UDA, via unit Landas Utama Sdn Bhd. (In August 2003, MRCB completed its acquisition of a 24.93% in UDA at RM2.39 per share or RM208mil.)
As at September 2004, UDA’s net tangible asset per share stood at RM3.37. Based on its latest annual report, its land bank for development has been valued at RM103.87mil.
UDA posted a net profit of RM28.99mil on the back of RM361.77mil in sales for the nine months ended September 2004, marking gains of as much as 79.84% and 14.41%, respectively, over that a year earlier.
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