KUALA LUMPUR (July 1): OCB Bhd wants to diversify into property development and reduce its reliance on the existing business under its consumer foods, bedding products and building materials divisions.

“The group intends to undertake its first foray in the property development business through Enigma Sinar Sdn Bhd (ESSB), an 80%-owned subsidiary of OCB, which would eventually form the fourth business division of OCB Group,” the group said in a bourse filing.
 
OCB added that it also intends to embark on other viable property development ventures in the future, including through strategic businesses or investments, joint ventures, collaborative arrangements, business agreements, and mergers and acquisitions.

“Barring any unforeseen circumstances, the property development business may contribute to 25% or more of the net profits or net assets (NA) of the group and/or result in a diversion of more than 25% of the NA of OCB Group, moving forward,” the group said.
 
On May 30, OCB announced that it is partnering with WorldKlang Group Property Development Sdn Bhd (WKGPD) to undertake a property development in Klang, with a gross development value of RM247.6 million.

The freehold land, measuring 149,410 square metres and owned by ESSB, will be developed into an industrial park with 34 units of semi-detached factory. ESSB and WKGPD share a common major shareholder, Greenspan Resources Sdn Bhd.

In its filing, OCB said the proposed diversification will take immediate effect upon obtaining approval from its shareholders at an extraordinary general meeting to be convened.

OCB’s shares closed at an adjusted price of 75 sen on Friday (July 1), bringing it a market capitalisation of RM77.1 million.