KUALA LUMPUR: Fajarbaru Builder Group Bhd
’s wholly-owned subsidiary, Fajarbaru Land (M) Sdn Bhd (FLM) has entered into a share purchase agreement (SPA) with Mayfair International Investments Pty Ltd (MII) to dispose of 44.44% stake in BFB Project Pty Ltd for A$4.2mil (RM12.1mil).
The principal activity of the Australia-based BFB Project is property development.
Fajarbaru said the disposal consideration is payable in two parts: a deposit of A$420,000, which is 10% of the total and is due within 14 days of signing the SPA, and A$3.78 mil, the remaining 90%, which is due within three months of signing.
The disposal consideration was determined on a willing-buyer, willing-seller basis. It took into account an indicative valuation from KPMG Corporate Advisory Sdn Bhd, which estimated the equity value to be between A$3.97mil and A$4.30 mil using the adjusted net asset value method, after considering the fair value of BFB's assets and liabilities.
“The proposed disposal provides an opportunity for the group to realise the investment in BFB to finance the group’s working capital requirements and as well as any potential future investments, which provide the group flexibility in respect of financial planning,” Fajarbaru said.
The proposed disposal is considered a related party transaction because it involves the interests of related parties. Chan Jiaheng, who is a director and indirect shareholder of MII, and Teh En Yee, who is also an indirect shareholder of MII, are the son and daughter-in-law, respectively, of Tan Sri Chan Kong Choy, Fajarbaru’s executive chairman.
