Hua Yang buys 40% stake in Sunny Mode

KUALA LUMPUR (April 18): Hua Yang Bhd has acquired the remaining 40% stake it did not own in Sunny Mode Sdn Bhd (SMSB), a property development company, for a cash consideration of RM3 million from Nestin Sdn Bhd.

In an announcement to Bursa Malaysia, the group said SMSB will now become a wholly-owned subsidiary of Hua Yang.

Hua Yang's rationale was to fully consolidate the company and have full control over the management of SMSB.

"The purchase consideration of the proposed acquisition was arrived at after taking into consideration the unaudited net assets of SMSB of RM3.38 million as at Feb 29 and the earnings potential of the development project," it said, adding that it will finance the acquisition through internally generated funds.

SMSB is a property development company which owns 11.5ha of vacant leasehold land near Seremban, Negri Sembilan. The 99-year lease expires on June 5, 2071.

The company is in the process of developing a mixed commercial and industrial project with a gross development value of RM48 million to be completed by 2016.