PETALING JAYA: The Employees Provident Fund (EPF) has exited from the developer of the Eco Grandeur township in Puncak Alam by disposing of its 40% stake for RM184.08mil.
The sale took place after the EPF, via its unit Tanjung Wibawa Sdn Bhd, exercised its put option in Paragon Pinnacle Sdn Bhd, which is developing Eco Grandeur and Eco Business Park V.
Eco World Development Group Bhd
, which owns 60% of Paragon Pinnacle, acquired the EPF’s 40% stake.
Tanjung Wibawa was granted a put option at the time of its subscription into Paragon Pinnacle in 2016, after the former provided shareholders' advances of RM367mil to fund the developments.
The put option can be exercised by the company after eight years from the date of Paragon Pinnacle’s first utilisation of the shareholders’ advances from Tanjung Wibawa.
With Paragon Pinnacle fully under Eco World’s control, it can now recognise the former’s full financial results.
“The acquisition is thus akin to acquiring two new projects that can immediately contribute to the group’s profit and cash generation, without the usual pre-launch market uncertainties or execution risks,” stated Eco World in a bourse filing.
