KUALA LUMPUR: Shares in Grand-Flo Bhd tumbled over 20% in early trade Wednesday after announcing its plan to acquire property assets in Genting Highlands.
The information technology provider fell 20.69%, or 12 sen to 46 sen, with over 68 million shares done.
Grand-Flo has entered into two separate deals to acquire properties near Genting Highlands in Pahang.
It said both deals with Galeri Tropika Sdn Bhd (GTSB) are valued at RM423mil and will be for a mixed development project known as “Grand Ion Majestic” (GIM Project).
The GIM Project will consist of 1,885 units of service apartments, 24 retail lots and six office lots with 45 accessory parcels with a proposed strata area.
The deal will be satisfied by cash, assumption of liabilities and redeemable convertible unsecured loan stocks to GTSB.
Grand-Flo aims to undertake private placement exercises to raise over RM75mil to fund its current and upcoming property development projects.
The company is also seeking to change its name to NCT Alliance Bhd
to reflect its new core business.
Grand-Flo posted a net profit of RM5.63mil for its financial year ended Dec 31, 2020, a 112% increase from the RM2.65mil recorded in FY19.
Its revenue rose to RM76.9mil from RM69.42mil for the year under review.
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