Friday, December 20, 2013


It is bullish about delivering stronger results ahead, having proposed land banking exercises that will boost its GDV pipeline to rm1.8 billion.

The first acquisition involves 267 acres of agricultural land in the district of Klang for rm100 million. The second acquisition of three property development companies from related parties for rm25.82 million.

To fund the purchase it will borrow rm60 million and use rm25 million from a 2:10 rights issue exercise that also comes with a 1 for 10 free warrant issue. The remaining rm15 million will be raised through a private placement exercise.

It will not only have larger asset base but also be able to address its current (Dec 2013) narrow public spread of 13.32%.

Its net gearing will be about rm55 million making its enterprise value of rm276.4 million.

The proposed acquisition will boost its development landbank to 382.1 acres.

It was in a net cash position as at 3QFY2013 with cash and bank balances of rm5.37 million against long term borrowings of rm363000. With the acquisition, its net borrowings will jump to about rm55 million.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.