MyEG's acquisition of strata offices in Empire City delayed

KUALA LUMPUR (Dec 30): The completion of My E.G. Services Bhd (MyEG)'s acquisition of 22 storeys of stratified parcels in the 45-storey Iconic Office Block at Empire City, Damansara, has been set back by the incompletion of the building.

In a filing with Bursa Malaysia, MyEG said today the completion of the acquisition has been pushed back to the first quarter of 2016 as Cosmopolitan Avenue Sdn Bhd, the vendor, has not completed the construction of the building.

"(Cosmopolitan Avenue) will not be able to obtain the CCC (Certificate of Completion and Compliance) by Dec 31, 2015 in accordance with the SPA (sale and purchase agreement) dated May 8, 2015," the filing read.

The group had initially expected to complete the acquisition in the fourth quarter of 2015.

On May 8, MyEG had proposed to acquire the property for a total consideration of RM155.3 million.

MyEG said the proposed acquisition will increase its gearing ratio to 72% from 10%, based on its audited financial results as at June 30, 2014.

However, the company said the proposed acquisition facilitates the company's plans to centralise its operations to improve efficiency and operational productivity.

MyEG shares closed 23 sen or 5.56% higher at RM4.37 yesterday, with a market capitalisation of RM5.28 billion.