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 wholly-owned subsidiary, FBG Land Sdn Bhd, at A$1 per share.
The acquisition represents 49% of BNL’s increased issued share capital, totalling A$5.22mil or RM7.14mil, to be paid entirely in cash.
BNL, incorporated in the state of Victoria in October 2017, is principally engaged in property development.
Aside from FBG Land, its other shareholder is Mayfair Land Holdings Pty Ltd.
In a filing with Bursa Malaysia yesterday, FBG said the proposed subscription in BNL aligned with FBG Land’s intention to subscribe to a specified number of new BNL shares.
This is in line with its objective of maintaining joint control in BNL while supporting the latter’s working capital needs for ongoing development.
Notably, the deal is a related-party transaction as one of BNL’s directors, Chan Jiaheng, is the son of Tan Sri Chan Kong Choy, the group executive chairman of FBG Land.
However, the group stated that the deal would not materially change FBG’s risk profile or adversely affect its business operations and financial performance.
FBG Land was formerly known as Fajarbaru Land (M) Sdn Bhd.
