Ho Hup expects restructuring exercise to be completed by 3Q 2011

KUALA LUMPUR: Ho Hup Construction Company Bhd, expects to complete its restructuring exercise by the third quarter of this year, executive director Derek Wong said.

He also said the company is still awaiting the outcome of the court case on the joint development agreement between its subsidiary, Bukit Jalil Development Sdn Bhd and Pioneer Haven Sdn Bhd, relating to a 24.3 hectare (60 acre) piece of land in Bukit Jalil, Kuala Lumpur.

Speaking to reporters after the company's extraordinary general meeting (EGM) here on Thursday, Feb 10, Wong said the company plans to focus on property development going forward.

"It is hoped the property development will be a major contributor to the company's business going forward," he added.

On November last year, Ho Hup had proposed to acquire a 100 per cent stake in property developers Fivestar Development (Puchong) Sdn Bhd and Kolektra Recreation Sdn Bhd for RM46.804 million via the issuance of new shares.

The acquisition is part of Ho Hup's initiative to put the company on a stronger financial footing through, among others, the injection of new viable businesses.

Ho Hup is also in the midst of seeking a three-month extension to May 4, from Bursa Malaysia Securities, for its PN17 regularisation plan.

At the EGM, the company received approval from its shareholders for the proposed disposal of 1.34 hectares (3.32 acres) of land in Bukit Jalil for RM9.55 million. — Bernama