Sanichi buys Johor-based realty firm for RM8m

KUALA LUMPUR (April 10): Sanichi Technology Bhd is acquiring a 70% stake in a Johor-based realty company for RM8 million for potential profit contribution.

This came on the heels of the precision mould designer and fabricator’s acquisition of a 50% stake in financial technology firm Bina Bicara Sdn Bhd for RM500,000 just last Friday.

In a filing with the stock exchange today, Sanichi said it is buying the 70% stake in Persada Ternama Sdn Bhd, which is involved in the business of land developers, builders, and contractors for construction.

It has in hand a joint housing and commercial development project with Lembaga Kemajuan Johor Tenggara (Kejora), an agency under the Ministry of Rural and Regional Development Malaysia. The development will take place on several parcels of land in Kota Tinggi, Johor, measuring 234 acres.

“The rationale for the proposed acquisition is to bring potential profit contribution by Persada to the Sanichi group,” said Sanichi.

It said the purchase consideration — which was arrived at on a willing-buyer willing-seller basis — will be financed via internally-generated funds.

The acquisition is not subject to shareholders’ approval.

Prior to its latest ventures, Sanichi was principally involved in property investment and development, as well as the manufacturing of precision moulds and tooling for use in automobile, electrical and telecommunication industries.

Its share price rose 1.5 sen or 16.67% to 10.5 sen today, for a market capitalisation of RM38.86 million. — theedgemarkets.com

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