KUALA LUMPUR: Titijaya Land Bhd
has proposed to acquire Sri Komakmur Development Sdn Bhd (SKDSB) for a purchase consideration of RM70.91mil from Tan Chuan Cheong and Tee Tiong Lee.
In a filing with Bursa Malaysia, Titijaya said it had entered into a share sale agreement with Tan and Tee for the proposed acquisition of three million ordinary shares equivalent to RM3mil, representing the entire issued share capital of SKDSB.
It said proposed acquisition enables Titijaya, through SKDSB, to gain access to 75.444 acres of prime land within the high-growth and fast maturing central development spine of Sabah.
Titijaya added that the lands, which are situated at the prime location of Sabah, was strategically located near to the notable local landmarks such as The Bank Negara Building, Royal Malaysia Custom, Bukit Padang Hospital, and Sabah Golf & Country Club and other local major government bodies.
“In view of the strategic location, the prospects of the development are expected to be encouraging. The board is of the view that the demand for residential and commercial properties in Sabah is expected to remain favourable among local and foreign buyers.
“Barring any unforeseen circumstances which may have an adverse impact on the demand for residential properties in Sabah, the board is upbeat that the development of the lands will contribute positively to the group’s financial performance,” Titijaya said.
Upon completion of the proposed acquisition, SKDSB and its subsidiaries will be consolidated as subsidiaries of Titijaya.
Based on the audited financial statements for the financial year ended Sept 30, 2014, SKDSB recorded a profit after taxation of RM3.16mil and net assets position of RM3.87mil. Subsequently, based on the latest consolidated management accounts as at Sept 30, 2016, SKDSB recorded a net profit of RM564,612 and net assets of RM6.76mil.
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