KUALA LUMPUR (March 8): Olympia Industries Bhd is getting a four-storey bungalow in lieu of payment for a RM5.5 million debt owed by a company controlled by its major shareholder and managing director Tan Sri Yap Yong Seong, widely known as Duta Yap.  

The debt is interest incurred from the RM55.3 million that Yap's 100%-controlled City Properties Sdn Bhd (CPSB) owed and was to pay Olympia via the sale of 15 condominium units at 9 Madge in Taman U-Thant.

Olympia said in a stock exchange filing today that its unit United Malaysian Properties Sdn Bhd will get the bungalow located at Taman Sri Hartamas with a built up of 543.9 sqm from Sri Aman Development Sdn Bhd (SADSB), a company in which Yap has an indirect 75% stake, held via his son Yap Wee Sean.

UMP has inked a sale and purchase cum settlement agreement with SADSB and CPSB for the related party transaction.

“The proposed transaction will enable the company to recover most of the outstanding amount due from CPSB, as well as to increase its portfolio of investment properties,” Olympia said, adding that the deal is expected to be completed by the second quarter of this year.

Tan Sri Yap Yong Seong holds a 32.52% stake in Olympia. Yap also controls Dutaland Bhd, where he has a 53.78% stake and is its managing director. 

Barring any unforeseen circumstances, the proposed transaction is expected to be completed by the second quarter of 2019, Olympia said. 

Olympia shares closed 0.5 sen or 4.76% higher at 11 sen today, giving the group a market capitalisation of RM112.58 million.