No immediate plans to develop land in Pahang amid uncertainties, says Mitrajaya

TheEdge Fri, Feb 18, 2022 08:59pm - 2 years View Original


KUALA LUMPUR (Feb 18): Construction and property group Mitrajaya Holdings Bhd said there are no immediate plans to develop the five pieces of land in Bentong, Pahang, that it is in the midst of purchasing in view of uncertainties in the speed of economic recovery post-Covid-19.

"As the acquisitions are funded by internal funds, the group will not be exposed to credit risk. There are on-going projects undertaken by Mitrajaya Group to enable it to meet its financial obligations, hence the non-development of the properties will not pose a risk in cash flow management," Mitrajaya said in a bourse filing on Friday (Feb 18).

On Wednesday (Feb 16), Mitrajaya's 60%-owned subsidiary Premier Discovery Sdn Bhd had entered into sale and purchase agreements with three related parties for the purchase of five pieces of land in Bentong, Pahang measuring a total of 213 acres for a combined RM16.2 million.

Mitrajaya said its portion for the proposed acquisition is RM9.72 million, which will be progressively paid over six months. As at end-December 2021, the group had RM4.91 million in cash.

The related parties are Nova Systems Sdn Bhd, Optima Melangit Sdn Bhd and Globemax Holdings Sdn Bhd. The three companies are connected to Premier Discovery's director and major shareholder Ng Jer Yiing. The shareholders of Premier Discovery are Mitrajaya, with a 60% equity interest, and Nouveau World Sdn Bhd, holding the balance 40% stake.

In the filing, Mitrajaya also clarified that the three companies, Nouveau World and Ng do not hold any shares in Mitrajaya nor does Ng have any directorship in Mitrajaya.

On the reason for the proposed land purchases, Mitrajaya said Premier Discovery currently owns four plots of land in Bentong, measuring a total of 264 acres. The proposed land buy will enable the group to expand its land bank in the Bentong area to 477 acres.

The proposed deal is expected to be completed by the second quarter of this year.

Mitrajaya shares closed up 0.5 sen or 2% at 25.5 sen, giving it a market capitalisation of RM213.22 million.

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