APB Resources Bhd (APB) intends to invest RM38 million for a leasehold property and a 16-story office building, Menara Serba Dinamik, in Shah Alam, Selangor.
The planned acquisition is part of APB’s plan to use the land for its objectives while generating rental income, and it is subject to the High Court’s approval.
Serba Dinamik Group Bhd (SDGB), which is presently going through liquidation, is the current owner of Menara Serba Dinamik.
Following a letter from the liquidator of SDGB informing APB of the sealed copy of the summons papers for the liquidation’s request for instructions about the sale of the property, the transaction was started.
After discussions between the parties and evaluation of the property’s net book value and market value, as calculated by PPC International Sdn Bhd, the purchase price of RM38 million was decided on a “as-is, where-is” basis.
Following an evaluation of SDGB’s financial results for the fiscal year ending June 30, 2022, this choice was made.
The parties involved must meet particular prerequisite requirements, which include receiving approvals or sanctions from pertinent agencies and courts, in order to move forward with the acquisition.
Prior to November 30, 2023, the transaction is anticipated to close, subject to regulatory approvals and the completion of these requirements.
The acquisition will be paid for by internally generated cash, according to APB Resources, and after it is finished, future earnings are expected to benefit from the transaction’s proceeds.
The share capital, net assets, or profits per share of APB for the fiscal year that ends on September 30, 2023 will not be impacted by the proposed acquisition. Additionally, no additional APB common shares are being issued as a result of this.
In line with the strategic goals of the business, the acquisition seeks to give APB a second source of income through the leasing of real estate. It is also a component of the business’s long-term strategy.
The market capitalization of APB Resources, which is now at RM250.58 million, increased by 4 sen or 1.83% as the company’s shares finished at RM2.22 a share.