Paragon Globe's unit inks deal to purchase land in Johor for RM38.079mil

KUALA LUMPUR: Paragon Globe Bhd’s (PGB) wholly-owned subsidiary, Paragon Platinum Sdn Bhd (PPSB) has signed three sales and purchase agreements (SPAs) to acquire three parcels of freehold agriculture land in Johor for RM38.079 million.

In a filing with Bursa Malaysia today, the property developer said the proposed acquisition would create greater economic value and increase the earnings potential of the company over the medium to long term as the three parcels of land in Johor Bahru, measuring 10.86 hectares, have promising development potential.

"It is the intention of PGB to develop the land into a well-conceptualised commercial area,” it said.

The proposed acquisition is not expected to have any material effect on the earnings and earnings per share (EPS) of PGB for the financial years ended March 31, 2022, and March 31, 2023, respectively, but is expected to contribute positively to future earnings and EPS of the company.

It is also not expected to have any material effect on the net assets per share of PGB except if equity fundraising is involved.

Barring any unforeseen circumstances, the proposed acquisition is expected to be completed within 12 months from the date of the SPAs.

It is expected to be financed through a combination of internally generated funds and or bank borrowings and or other fundraising corporate exercises.

However, the exact quantum and the resultant proportion of internal funds, bank borrowings and or equity fundraising has not been ascertained at this juncture, said PGB. - Bernama