Permaju to buy 30% stake in Hardie Development, proposes private placement

KUALA LUMPUR (Bernama) -- Permaju Industries Bhd today entered into a conditional share sale agreement with Chai Kim Chong to acquire 600,000 ordinary shares in Hardie Development Sdn Bhd representing 30% equity interest for RM21.8 million.

Hardie is an existing 70%-owned subsidiary of Permaju.

In a filing with Bursa Malaysia today, Permaju has also proposed to undertake a private placement of up to 182,410,000 new ordinary shares representing 30% of its existing total number of issued shares to independent third-party investors to be identified later.

Permaju said Hardie is a property developer currently developing the Princess Heights Project in Sabah and upon completion of the acquisition, Hardie will become a wholly-owned subsidiary of the company.

"Thus, the acquisition will allow us to fully consolidate its interest in Hardie. In turn, this allows the company to derive all the future benefits that may be accrued from the ongoing development of the Princess Heights Project which is expected to enhance the future profitability and cash flow of the group,” it said.

Meanwhile, the proceeds raised from the proposed private placement will be utilised mainly for the settlement of the purchase consideration.

Upon completion of the proposed private placement, the enlarged capital base is also expected to further strengthen the financial position of the company, it said.

Moving forward, Permaju intends to focus on the development of the Princess Heights Project and the launch of its luxury car rental business as part of its effort to continuously enhance its business performance, maximise shareholders’ value and improve its financial position.

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Permaju , Hardie Development


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