Land & General to buy four firms for RM298 mil; proposes rights issue

KUALA LUMPUR (Nov 16): Land & General Bhd (L&G) is acquiring four companies for a total of RM298.32 million, saying it will allow the group to replenish its landbank for immediate and future developments.

In a filing yesterday, L&G said it will acquire the four companies from Malaysia Land Properties Sdn Bhd, namely Primal Milestone Sdn Bhd valued at RM128.47 million, Triumph Bliss Sdn Bhd at RM118.5 million, Forward Esteem Sdn Bhd at RM45.73 million and Quantum Bonus Sdn Bhd at RM5.97 million.

L&G said the acquisitions will allow the group to purchase sizeable strategically located landbank in the Greater Klang Valley area in an expeditious manner to take advantage of the current property market slowdown.

It will also “enlarge and strengthen the current earnings base of the group with future contributions from the ongoing and future developments on the land banks and investments to be acquired”.

Meanwhile, L&G also proposed a renounceable rights issue of up to 1.914 billion shares at an issue price to be determined later, on the basis of eight rights shares for every five existing shares held, based on a minimum subscription level of 820 million rights shares.

This article first appeared in The Edge Financial Daily, on Nov 16, 2016. Subscribe to The Edge Financial Daily here.