KUALA LUMPUR: Ewein Bhd
has inked a share sale agreement with Messrs 555 Capital Sdn Bhd for the acquisition of one million ordinary shares of RM1 each or a 50% equity interest in UD Piles Sdn Bhd for RM2.88mil.
A filing with Bursa Malaysia showed that UD Piles would be a 50%-owned associate company of Ewein on completion of the purchase.
The acquisition was paid in cash and funded entirely through internally-generated funds.
UD Piles is a general contractor and sub-contractor in the construction industry with an authorised share capital of RM5mil while 555 Capital is an investment holding company with an authorised share capital of RM50mil.
Ewein said that save for the consideration of the acquisition, there is no additional financial commitment required by Ewein as UD Piles is already a fully operational business.
There are no liabilities, including contingent liabilities and guarantees, to be assumed by Ewein.
“The acquisition presents an opportunity for Ewein to own the 50% shares in UD Piles at a fair price. The acquisition is also in line with the group’s strategy to diversify its business,” Ewein said.
On Monday, Ewein announced that its 60% subsidiary, Ewein Zenith II Sdn Bhd had entered into a sale and purchase agreement with Consortium Zenith BUCG Sdn Bhd to acquire a piece of freehold land measuring approximately 4.4252 acres in Bandar Tanjong Pinang, Penang for RM162mil.
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.
The company plans to embark on a residential and commercial property development on that piece of land, which shall be determined at a later stage.
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