KUALA LUMPUR: Kamunting Management Services Sdn Bhd, an indirect wholly-owned subsidiary of Eastern & Oriental Bhd (E&O), has entered into a share sale agreement (SSA) with Penang Development Corporation (PDC) to acquire the remaining 40 per cent of the issued share capital in E&O-PDC, comprising 14,000 ordinary shares, for RM46.95 million.
In a filing with Bursa Malaysia today, E&O said Kamunting is currently the registered owner of 21,000 ordinary shares, equivalent to 60 per cent of the shareholding in E&O-PDC.
"PDC has agreed to sell, and Kamunting has agreed to purchase the sale shares on the terms and conditions contained in the SSA.
"Upon completion of the acquisition, E&O-PDC will become a wholly-owned indirect subsidiary of E&O,” it said.
The E&O Group is principally involved in property development, property investment and the hospitality industry.
E&O-PDC currently owns 30 per cent of Tanjung Pinang Development Sdn Bhd (TPD), while the remaining 70 per cent is held by Permaijana Ribu (M) Sdn Bhd, a wholly-owned indirect subsidiary of E&O.
"The acquisition of 40 per cent shareholding in E&O-PDC from PDC will enable E&O to own 100 per cent shareholding in TPD where the main development activities for E&O Group will be concentrated on over the next 30 years.
"TPD holds the concession rights to the reclamation and development of Seri Tanjung Pinang which encompasses 1000 acres in Tanjung Tokong Penang,” E&O said.
On the prospects of the group, it said that the E&O Group planned to initiate the development of Andaman Island Phase 1 over the next 15 years, with a projected gross development value (GDV) of RM17 billion.
The first project, The Meg, has been available for sale since January 2022 and has achieved a 100 per cent sales rate as of January 2023 and is located in the prime Tanjung Tokong area near Gurney Drive and comprises two residential apartment blocks with approximately 1,020 units.
The reclamation of Andaman Island Phase 2 has begun and is expected to take six years, providing a future land bank for development in the prime North-East district of Penang.
"As a result, the E&O Group believes that Andaman Island will play a significant role in driving its growth trajectory in Penang in the coming years.
"Given the above, the board believes that the acquisition will have a positive impact on the E&O Group’s future earnings and long-term growth prospects,” it added. - Bernama