Atta Global unit buys two property developers for RM7.5m
PETALING JAYA: Atta Global Group Bhd's wholly owned subsidiary Atta Properties Sdn Bhd (APSB) today entered into share sale agreements with vendors for the acquisition of two property developers for RM7.5 million. The proposed acquisition involves the purchase of the entire stake in Eminent Potential Sdn Bhd for RM4 million cash and Scanrite Sdn Bhd for RM2 million cash. Upon completion of exercise, Eminent and Scanrite will become wholly owned subsidiaries of APSB. Eminent and Scanrite both intend to undertake a property development project on its respective land in Penang and Kedah. "This proposed acquisitions will provide the group with opportunities to obtain additional land banks for future development. The board is optimistic that the proposed acquisitions would generate synergistic benefits to the group in future," Atta said. The exercise will be funded by internally generated funds. The proposed acquisitions are a strategic move in view of the company's proposed diversification into property development. "The board of directors of Atta believes that there will be an opportunity to enjoy the project potential yields, when it is launched and successfully implemented. However, the board has not finalise the plan for the proposed development of the Eminent and Scanrite land." The proposed acquisitions is estimated to be completed within three months from the date of SSA. [...]