PRG subscribing for 29.9% stake in Singapore's Capital World

Capital World, which is based in Johor, is an integrated property developer that focuses on working with landowners on a joint venture (JV) basis to enhance the value of landowner's land asset.

KUALA LUMPUR: PRG Holdings Bhd has proposed to inject capital into Singapore-listed Capital World Ltd by subscribing to a 29.9% stake of the latter's enlarged share capital.

PRG, which is involved in manufacturing, property and healthcare, had on Monday inked an MoU with Capital World Limited is an integrated property developer, which is listed on the Singapore Exchange Securities Trading Limited (SGX-ST). 

In announcement to the SGX, Capital World said PRG would subscribe for new ordinary shares in the company.

“Upon completion of the proposed investment, the investor (PRG) shall hold up to 29.9% of the enlarged issued share capital of the company. The exact terms of the proposed investment are still subject to further negotiations and the satisfaction of certain conditions precedents in the MoU,” it said.

Capital World, which is based in Johor, is an integrated property developer that focuses on working with landowners on a joint venture (JV) basis to enhance the value of landowner's land asset. 

Through the JVs, Capital World undertakes the concept, design and implementation of integrated property development projects, while minimising capital outlay for the acquisition of land banks.

Capital World is  developing Capital 21 mall, which it says will be Johor Bahru's largest shopping mall - as well as a hotel and serviced suites, and serviced apartments in Johor. 

It is also planning an integrated development project in Johor and a wellness hub in Perak.

PRG Group managing director Datuk Lua Choon Hann said the proposed investment is part of PRG’s overall strategy to continue building up its property development and  construction division to be one of the significant property players in Malaysia. 

Lau said the corporate exercise would enable PRG to introduce the medical and wellness elements in its projects which would boost Capital World's product offering.