Malton scales back acquisition of Austin Heights

KUALA LUMPUR: Malton Bhd has scaled back its proposed acquisition of Austin Heights Sdn Bhd from the initial 100% stake costing RM103 million to only 20% for RM20.6 million cash.

Malton said on Tuesday, Sept 29 it had entered into a supplemental agreement with Southcon Builders Sdn Bhd for the acquisition of one million shares in Austin Heights for RM20.6 million.

The earlier agreement, signed on Oct 8 last year, was to acquire the entire five million shares of Austin Heights for RM103 million.

However, the company viewed the market to remain challenging as domestic consumption and investments remain low despite some signs of recovery in the local economy.

"The board believes that Malton group of companies should adopt a more prudent approach in its expansion plan.  The revised proposal will maintain the group's presence in the southern region and also conserve its cashflow during this challenging period," it said.

Malton said the revised proposal would maintain the group's presence in the southern region and also conserve its cashflow during this challenging period.