KLANG (Feb 11): Scientex Bhd is eyeing to launch RM1 billion worth of affordable properties during the current financial year (FY19), similar to last year's target.
Its unbilled sales currently stand at RM500 million as at 1QFY19.
The packaging manufacturer and property developer said despite the soft market, its take up rate for its affordable home projects around the Peninsula has consistently been good and will continue to focus on this segment for its property arm.
"We have been increasing our launches every year. We plan to launch around 15 projects this year. We currently have developments in Johor, Melaka, Perak and our latest in Rawang," Scientex Executive Director of Corporate Planning, Jesselyn Chang, told reporters after the group's extraordinary meeting here today.
She added that the group is looking to plan more projects around the Klang Valley, after launching its Rawang project there. The group currently has a total landbank of 3,300 acres.
Earlier at the EGM, Scientex obtained approval from its shareholders for the group's proposed acquisition of a 42.4% controlling stake in Daibochi Bhd, which will be satisfied by the issuance of 25.1 million Scientex shares.
The deal, worth RM221.1 million, will be completely conducted via a share swap, on the basis of 5.5 Daibochi shares for one Scientex share.
Shareholders also approved for the proposed mandatory general offer (MGO) to acquire all remaining shares and warrants in Daibochi, not already owned by Scientex.
With the acquisition, Chang said Scientex will be able to use its research and development knowledge to synergise with Daibochi's market exposure to produce more recycable packing products, which she said has seen an increased demand due to environmental concerns.
At Bursa Malaysia, Scientex closed unchanged to RM8.80 at noon market close today, for a market capitalisation of RM4.28 billion. — theedgemarkets.com