KUALA LUMPUR (January 6): Lion Industries Bhd has offered to acquire a subdivided leasehold agricultural land in Sepang for RM 23 million or RM 6.60 per square foot in a related party transaction.
The group reached an agreement on Thursday, January 6 with Granprop Sdn Bhd and Premier Land Resources Sdn Bhd to acquire the 80-acre (3.48 square foot) land.
Premier Land is the primary land title holder of 1,287 acres of land which includes the 80-acre subdivided parcel.
As of December 2020, Premier Land had reached an agreement to sell the 1,287 acres of land to Grandprop Sdn Bhd for RM 27.88 million or RM 8 per square foot.
Grandprop is a 100% subsidiary of Serbaniaga Holdings Sdn Bhd, which in turn is owned by Liew Choon Yick (51%) and Lee Whay Keong (49%), as candidates for Tan Sri Cheng Heng Jem, a major shareholder by Lion Industries.
Cheng held a 32.72% direct stake and an indirect 1.87% stake in the group as of September 30, 2020.
Lion Industries said its proposed acquisition offers a strategic investment opportunity and is in line with the group’s plan to expand its land reserve for its real estate division.
He added that the planned conversion of land use of existing agricultural land to mixed development / industrial development should provide the group with the opportunity to create potential economic value and contribute to its income in the near future.
Shares of Lion Industries closed down 1.5 sen or 2.48% at 59 sen on Thursday, giving the group a market cap of RM 424 million.