Iris buys a further 50% stake in resort

PETALING JAYA: Iris Corp Bhd is buying a further 3.33 million shares or a 50% stake in Palau Peleliu Resorts Limited from UK Investment Holdings Limited (UKIH) for US$5 million (RM16.39 million) or US$1.50 per share.
Iris told Bursa Malaysia yesterday that its 60%-owned subsidiary, Iris Land Sdn Bhd, had signed a share sale agreement that would increase its stake in Palau Peleliu Resorts to 80%, making it a subsidiary.
In February, Iris Land bought a 30% stake in the owner and developer of a 75ha villa and resort project in the Republic of Palau for US$2 million (RM6.6 million).
The Republic of Palau is a grouping of 250 islands located in the western Pacific Ocean.
"This acquisition is to enable the company to have greater control and supervision over the development project to be implemented in Palau and to contribute positively to the financial results of the Iris group in the long run," Iris said yesterday.
Under the agreement, Iris Land will also pay 5% of any sale for the villas it will construct to UKIH within three years from the execution of the agreement.
The acquisition of the sale shares will be financed through internally generated funds and bank borrowings and is not subject to the approval of the shareholders of the company or any relevant government authorities.