KUALA LUMPUR (July 20): Y&G Corp Bhd is set to acquire a leasehold tract of 10.828 acres in Dengkil, Selangor, after signing a share sale agreement (SSA) to take over Ikramin Sdn Bhd (ISB) for RM13.428 million cash — as ISB is acquiring the said land from a Selangor government agency.

In a filing with Bursa Malaysia today, Y&G said its wholly-owned direct subsidiary Rukun Warisan Sdn Bhd (RWSB) signed the SSA with Ang Ah Buay and Zuraidi Aziz for the proposed acquisition of ISB today to effect the acquisition of ISB, which is currently inactive.

The land’s registered owner is Perbadanan Kemajuan Pertanian Selangor (PKPS) as it is categorised for agricultural use. As at June 30, 2015, the land’s unaudited net book value was RM978,034.

ISB had entered into a sale and purchase agreement dated July 19, 2002, and a supplemental agreement on March 18, 2015, with PKPS to acquire the tract.

Y&G said RWSB is proposing to construct a mixed development on the land. However, as the development is subject to the planning, conversion of land use and the development approvals from the relevant authorities, Y&G is unable to ascertain the indicative gross development value of the project at this juncture.

It added that no valuation has been carried out on the land.

“The proposed acquisition is part of Y&G Group’s objective of concentrating on its core businesses of property development by further increasing its land bank size,” the group said.

“The proposed acquisition shall be satisfied by cash, which will be funded via internally generated funds arising from the recently completed proposed private placement with warrants and proposed rights issue with warrants,” said Y&G.

The acquisition is expected to be completed by the fourth quarter of the current financial year ending Dec 31, 2015 (4Q15) and to contribute positively to the group’s figures for the financial year ending FY16 onwards.

Y&G's shares closed at RM1.52 today, up 2 sen or 1.33% for a market capitalisation of RM199.38 million.

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