IJM acquires 70% equity interest in Sova Holdings

KUALA LUMPUR: IJM Land Bhd entered into a shares sale agreement with existing shareholders of Sova Holdings Sdn Bhd (SHSB) Ong Yeng Tian @ Ong Weng Tian, Ong Seh Choon, Ong Seh Yew, Ong Chiew Gee and Ong Chiew Lee, to acquire from them a total of 210,000 ordinary shares of RM1 each.

This represents a 70% equity interest in SHSB, for a cash consideration of RM18 million or about RM85.71 per share, according to an announcement on Bursa Malaysia on May 21.

SHSB is currently undertaking a development jointly with Thai Duong Company-Sunco (Sunco), a state-owned company incorporated in Vietnam, comprising four blocks of high-rise residential apartments and retail and commercial components on 2.85ha parcel of land in Phu Hoi commune, Nhon Trach City Center (NTCC), Dong Nai Province, Vietnam.

NTCC is located close to six major industrial parks and is within the vicinity of four international-standard golf clubs. Sunco, being the landowner, is entitled to 15% of the gross development value (GDV) of the project in consideration of land cost.

The development is estimated to generate total GDV of US$150 million (RM498 million). Piling work for the initial phase is currently in progress and the maiden sales launch is expected on 3Q2010.

The transaction will not have any significant effect on the earnings or net assets per share of the company for the financial year ending March 31, 2011.

The group's principal activities are property development and managing properties. Operations are carried out in Malaysia.