Y&G buys Ikramin for RM13.4m

PETALING JAYA: Y&G Corp Bhd's wholly-owned indirect subsidiary Rukun Warisan Sdn Bhd is acquiring the entire issued share capital of Ikramin Sdn Bhd, which owns 10.8 acres of land in Sepang, for RM13.4 million.
In a filing with Bursa Malaysia yesterday, Y&G said Rukun Warisan has entered into a share sale agreement with two individuals Ang Ah Buay and Zuraidi Aziz to acquire 25,000 ordinary shares of RM1 each, representing the entire issued share capital of Ikramin.
The acquisition will result in Ikramin becoming a wholly-owned subsidiary of Rukun Warisan.
Y&G said the proposed acquisition is part of its objective of concentrating on its core businesses of property development by further increasing its land bank size and is expected to contribute positively to its revenue, profit and cash flow from the financial year ending Dec 31, 2016 onwards.
Ikramin is a private limited company with an authorised share capital of RM100,000. It has 10.8 acres of leasehold land in Sepang, which is currently vacant. Y&G plans to develop the land into a mixed development.
"However, the proposed development is still in its preliminary stages and is still subject to the planning, conversion of land use and the development approvals from the relevant authorities upon the completion of the proposed acquisition. Therefore, it is too preliminary to ascertain the indicative gross development value at this juncture," it said.
Y&G expects to fund the proposed acquisition via internally generated funds arising from the recently completed proposed private placement with warrants and proposed rights issue with warrants as announced on Nov 21, 2014.
It expects to complete the proposed acquisition by the fourth quarter of the current financial year ending Dec 31, 2015.