Magna Prima acquires remaining stake in Magna Ecocity for RM45.6mil

KUALA LUMPUR: Magna Prima Bhd has inked a sale and purchase agreement to acquire the remaining 30 per cent equity interest of the issued share capital in Magna Ecocity Sdn Bhd for RM45.58 million.

In a filing with Bursa Malaysia today, the property developer said it inked the agreement with one of Magna Ecocity's directors, Lee Shu Shun.

It said the proposed acquisition, comprising 1.11 million ordinary shares in Magna Ecocity, is expected to be completed within three months from the agreement date.

"The purchase consideration will be paid in cash, and the financing will be entirely sourced from bank borrowings.

"Upon completion, Magna Ecocity shall become 30 per cent owned by Magna Prima and the remaining 70 per cent is owned by Magna Prima’s direct wholly owned subsidiary, Magna Prima Development Sdn Bhd,” it said.

The group said the deal would be in line with Magna Ecocity’s principal activities of property development and represent a strategic opportunity for the company to unlock the value of its investments for the benefit of its shareholders.

It said this would enable the full consolidation of Magna Prima’s stake in Magna Ecocity and would bolster the group's future profitability and earnings consolidation.

"The (transaction) is expected to contribute positively to the group in the future given the favourable outlook and prospects of the property development industry, thus enhancing Magna Prima’s shareholders’ value in the medium to long term,” it added. - Bernama