PETALING JAYA: Fajarbaru Builder Group Bhd
(FBG) is proposing to subscribe to another 2.56 million ordinary shares of Australia-based Beulah Northcote Land Pty Ltd (BNL) through its full subsidiary FBG Land Sdn Bhd, at a consideration of A$1 per share.
The acquisition represents 49% of the total increased issued share capital of BNL for a total of A$5.22mil, which means the deal is worth approximately RM7.14mil, to be satisfied entirely in cash.
BNL was incorporated in the state of Victoria in October 2017, and is principally engaged in property development. Aside from FBG Land, its other shareholder is Mayfair Land Holdings Pty Ltd.
In a statement to Bursa Malaysia, FBG said the proposed subscription in BNL aligns with FBG Land’s intention to subscribe to a specified number of new BNL shares, in line with its objective to maintain joint control in BNL while supporting the latter’s working capital needs for current development progress.
Notably, the deal is a related party transaction as one of the directors of BNL is Chan Jiaheng, who is a son of Tan Sri Chan Kong Choy, group executive chairman of FBG, although the group said the deal will not materially change the risk profile of FBG and/ or adversely affect the group’s business operations and financial performance, it is nonetheless a related party.
FBG Land Sdn Bhd is formerly known as Fajarbaru Land (M) Sdn Bhd.
