KUALA LUMPUR (Jan 7): Lion Industries Bhd has proposed to acquire a sub-divided leasehold agriculture land in Sepang for RM23 million or RM6.60 per sq ft in a related-party transaction.

The group on Thursday (Jan 6) entered into an agreement with Granprop Sdn Bhd and Premier Land Resources Sdn Bhd for the acquisition of the 80-acre (3.48 sq ft) land.

Premier Land is the master land title holder of 1,287 acres of land that includes the 80-acre sub-divided piece.  

Premier Land had in December 2020 entered into an agreement to sell the 1,287 acres of land to Grandprop Sdn Bhd for RM27.88 million or RM8 per sq ft. 

Grandprop is a wholly-owned subsidiary of Serbaniaga Holdings Sdn Bhd, which is in turn held by Liew Choon Yick (51%) and Lee Whay Keong (49%), as nominees for Tan Sri Cheng Heng Jem, a major shareholder of Lion Industries.

Cheng held a 32.72% direct interest and 1.87% indirect stake in the group as of Sept 30, 2020. 

Lion Industries said its proposed acquisition provides a strategic investment opportunity and is in line with the group’s plan to expand its landbank for its property division.

It added that the planned conversion of the usage of land from the existing agricultural land to mixed development/industrial development, is expected to provide the group with the opportunity to create potential economic value and contribute to its earnings in the near future.   

Shares of Lion Industries closed down 1.5 sen or 2.48% at 59 sen on Thursday, giving the group a market capitalisation of RM424 million.

Edited by S Kanagaraju

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