KUALA LUMPUR: Iris Corp Bhd is acquiring 3.33 million shares or a 50% stake in Palau Peleliu Resorts Ltd from UK Investment Holdings Ltd for US$5 million (RM16.4 million) or US$1.50 per share.
In a filing with Bursa Malaysia yesterday, Iris said its 60%-owned subsidiary Iris Land Sdn Bhd had signed an agreement with UK Investment for the proposed acquisition.
The share purchase will increase Iris’ stake in Palau Peleliu Resorts to 80%, making it a subsidiary.
Iris on Feb 20, 2014 bought a 30% stake or two million shares in Palau Peleliu Resorts for US$2 million or US$1 per share. Palau Peleliu Resorts is involved in the development, management and construction of resorts, villas, residential and commercial buildings in Palau, an island state in the western Pacific Ocean.
Iris said the acquisition will enable the group to have greater control and supervision of the development in Palau, adding that it will contribute positively to its earnings in the long run.
Under the agreement, Iris will make payment — via internal funds and bank borrowings — in four tranches, with the deposit of 5% or US$250,000 to be made to UK Investment upon the execution of the agreement.
Iris said the subsequent three payments of US$750,000, US$1 million and US$3 million will be paid to UK Investments in six, 12 and 24 months, respectively, from the date of the execution of the agreement.
This article first appeared in The Edge Financial Daily, on October 29, 2014.