PETALING JAYA: SC Estate Builder Bhd
is proposing to acquire a 25% equity interest in Sentosa Regency Hotel in Alor Setar, Kedah for RM18.79mil from the mother of its chairman, Loh Boon Ginn.
In a filing with Bursa Malaysia, the construction firm said it had entered into a share sale agreement with Koay Seok Chin for the acquisition of 20 million shares in Sentosa Club Hotel Sdn Bhd.
The company said the purchase price will be settled via the issuance of redeemable convertible preference shares.
It added that Sentosa Regency Hotel has ceased operations since 2021.
The company said the proposed acquisition is being undertaken in line with the group's future plans to expand and grow its business operations, reduce reliance on its existing businesses, and establish an additional source of income in addition to its present business operations.
“Sentosa Regency Hotel provides the group with the flexibility to repurpose and convert part of the hotel for its own head office use, while reconfiguring the remaining portions into office space for leasing, thereby enabling the group to venture into the property investment business and generate additional income through rental and leasing activities.
