KUALA LUMPUR (June 27): Paragon Globe Bhd is buying three pieces of freehold agriculture plots in Plentong, Johor, for RM38.08 million to be developed into a "well-conceptualised" commercial area that it believes will enhance its future revenue and earnings.
In a bourse filing, the group said the plots — measuring 10.86 ha — are being bought by its wholly-owned Paragon Platinum Sdn Bhd, which has inked the respective sale and purchase agreements with the vendors — Singaporeans Lim Thiam Seng and Lim Yok Sing and two companies linked to them, Eng Foo (Lim) Enterprise Sdn Bhd and Heng Foo Lim Enterprise Sdn Bhd — for the proposed acquisition.
“The board is of the view that the proposed acquisition would provide Paragon Globe the opportunity to create greater economic value and increase the earnings potential of the company over the medium to long term as the lands have promising development potential,” it said.
“The lands are strategically located at the central part of Johor Bahru and surrounded by different types of commercial and industrial properties,” it added.
Paragon Globe plans to fund the purchase via a combination of internally -generated funds, bank borrowings and/or other equity fund raising. The proposed acquisition is expected to be completed within 12 months.
Its shares closed unchanged at 17.5 sen on Friday, giving the group a market capitalisation of RM130.66 million.
Edited by Tan Choe Choe.