GuocoLand to spend RM30m on acquisitions

KUALA LUMPUR (Nov 9): GuocoLand Malaysia Bhd (GLM) is planning to acquire the entire equity interest in PJ City Development Sdn Bhd and PJ Corporate Park Sdn Bhd for RM30.04 million.

"The proposed acquisitions are not expected to have any material effect on the earnings of the GLM group for the financial year ending June 30, 2012. However, the proposed acquisitions are expected to contribute positively to the earnings of the GLM group in future years," GLM told Bursa Malaysia on Tuesday.

GLM also said it would spend RM29.79 million for the proposed acquisition of the entire equity interest of five million shares in PJ City from GuoLine Asset Sdn Bhd. GuoLine initially spent RM5 million on its investment in PJ City.

The group will spend RM258,000 to acquire the entire equity interest of 20 million shares  in PJ Corporate from MPI Holdings Sdn Bhd (MPIH). The original cost of investment in PJ Corp by MPIH was RM265,000.

PJ City, which deals primarily in property development and property investment, recorded a net profit of RM4.75 million for FY11 ended June 30, and its net assets was RM38.62 million. PJ Corp posted a net loss in FY11 ended June 30 of RM9,648 while its net assets was at RM249,303.

GLM's major shareholder is Hong Leong Co (M) Bhd (HLB) through GLL (M) Pte Ltd. HLB is also a major shareholder of GuoLine and MPIH. Tan Sri Quek Leng Chan, a director of GLM and a name well associated with HLB, is deemed a major shareholder of GLM, GuoLine and MPIH.

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