In a statement the company said its subsidiary Ewein Zenith II Sdn Bhd signed the agreement with Consortium Zenith for the land in Section 1, Bandar Tanjong Pinang, Penang.
“The proposed acquisition is in line with Ewein’s strategy to increase its landbank in order to expand the Group’s revenue base, particularly in the property development division. In light of the strategic location of the land, which is in a matured and established prime area for residential and commercial purposes, the board opines that the said land is strategic for the future development of the Group,” said deputy chairman and group managing director Datuk Ewe Swee Kheng.
Ewein Zenith II is a 60%-subsidiary of Ewein Land Sdn Bhd, which in turn is a unit of Ewein. The remaining 40% is held by Consortium Zenith, a construction company that was awarded the works for the major roads project and the third link (tunnel) project in Penang by the State Government of Penang for RM6.3bil.
Once the sales and purchase agreement is executed, Ewein will deposit RM16.2mil as refundable deposit. The company will finance the acquisition via internally-generated funds and bank borrowings.
The proposed acquisition is subject to shareholders’ approval at the upcoming EGM.
Ewein expects to complete the acquisition in the first half of 2016. The company plans to develop residential and commercial properties on the land.