PETALING JAYA: Angkasa Indah Sdn Bhd has entered into a conditional Sale and Purchase Agreement with Perniagaan Sanjung Sdn Bhd for a piece of leasehold land.

The over nine-acre piece of land, situated in Pekan Penaga, Selangor, was sold at an agreed price of RM56 million, said the Bursa Malaysia announcement on Nov 23.

Under the agreement, Angkasa Indah paid Perniagaan Sanjung 10% of the purchase consideration (RM5.6 million), while the balance of 90% amounting to RM50.4 million is to be paid within three months, with an automatic extension of one month upon consent from the State Authority by the Angkasa Indah lawyers.

The land tenure is a 99-year lease expiring on March 21, 2093. Angkasa Indah is a subsidiary of Nikmat Jaya Sdn Bhd, which in turn is a subsidiary of DNP Holdings.

The proposed acquisition will increase the DNP Group’s landbank and it falls within the normal course of the group’s business, which includes property development and investment.

There will be no changes in the company’s share capital and substantial shareholders’ shareholding as the purchase is to be satisfied entirely by cash (financed by bank borrowings and/or internally generated funds). The acquisition will also not have any material effect on the net tangible assets of the DNP Group.

It is also not expected to impact on the earnings of the group for the financial year ending June 30, 2010. However, earnings are expected to be enhanced in the long term from the development projects on the land to be acquired.