Bernama, Photo Credit to
clock 15-08-2019
hit 655

GSB Proposes to Acquire Property Development Companies

GSB Group Bhd is planning to boost its property development business through the proposed acquisition of four property development companies for RM714.71 million.

Executive chairman Datin Toh Siew Chuon said the company has entered into conditional share sale agreements to acquire the entire interest in Aeon Frontier Sdn Bhd (AFSB), Kerjaya Prospek Property Sdn Bhd (KPP) and Kerjaya Hotel Sdn Bhd (KHSB) for RM672.04 million.

The company has also entered into a conditional share subscription agreement for the proposed subscription of 99.4 per cent equity interest in Desanda Property Sdn Bhd (DPSB) for RM42.67 million.

Toh said the proposed acquisitions are subject to shareholders approval and are likely to be completed in first quarter of 2020.

AFSB, KPP and DPSB are jointly owned by Datuk Tee Eng Ho and GSBs executive director Tee Eng Seng.

Meanwhile, KHSB is jointly owned by Toh, Tee and Tee, with Javawana Sdn Bhd having a 40.8 per cent interest in the company.

Toh added that the acquisitions will give GSB immediate access to on-going property development projects with a total remaining gross development value of RM1.74 billion in strategic locations in Kuala Lumpur and Penang.

"We are honored to be part of this transaction to transform GSB into a sizable property development player," she told reporters here, today.

She said the acquisition also serves as a platform to increase the company's landbank and expand its footprint to Melaka and other parts of Selangor such as Gombak.

To facilitate the acquisitions, GSB plans to undertake a fund-raising exercise of up to 125 million consolidated shares (at an issue price to be determined later), share consolidation (every five existing shares into one share) and amendments to its constitution.

The acquisition of AFSB, KPP and KHSB will be satisfied via RM100 million in cash, issuance of 196.9 million new GSB ordinary shares at an issue price of 17 sen per share (RM33.47 million) and issuance of 3.168 billion redeemable convertible preference shares (RCPS) at an issue price of RM0.17 per RCPS.

Meanwhile, the subscription consideration of DPSB will be via a settlement arrangement which include, among others, the reinvestment of 251 million new GSB shares by Tee and Tee at an issue price of RM0.17 per share, totalling RM42.67 million.

Tags / Keywords:



Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.


Monthly Column
The staple of your property-related materials. It's all about being ahead of the game and with The Column, you get carefully selected information that will keep you informed and running with the pack. The best news, articles and properties on the market from the Property Hunter portal, conveniently wrapped and ready, just for you.