Permaju to acquire 70% equity in Hardie Development

KUALA LUMPUR: Permaju Industries Sdn Bhd has entered into a conditional sale and purchase agreement (SPA) with Hardie Development Sdn Bhd (HDSB) and its directors to acquire a 70% equity interest in the company, Permaju Industries announced to Bursa Malaysia on March 8.

Permaju had entered into the SPA to acquire 70 shares of RM1 each representing a 70% stake in HDSB from directors Datin Pang Fook Kyun and Sim Men Kin @ Andrew Sim, for a total purchase consideration of RM33.68 million in cash.

Pang and Sim each hold 50 shares and Permaju has agreed to acquire 35 shares from each of them. Pang is married to Datuk Lim Yen Ngiap, who is a non-independent non-executive director of Permaju and is deemed interested in the proposed acquisition.

According to Permaju, the proposed acquisition will allow it to diversify into property development and enhance the overall profitability of the group via HDSB, which will become a subsidiary company of the former after the completion of the proposed acquisition.