Major shareholder of Yong Tai increases stake

PETALING JAYA: Hong Kong-listed Co-Prosperity Holdings Ltd has upped its stake in tourism and property developer Yong Tai Bhd to 31.34% for RM54.18 million.

The interest was acquired through subsidiary Full Winning Developments Limited (FWDL) subscribing to 43 million new Yong Tai shares, via a placement, at RM1.26 a share.

The monies raised through the placement is to part finance the purchase of the 1.08 acres of land in Bukit Bintang, Kuala Lumpur.

Yong Tai yesterday entered into a conditional share subscription agreement (SSA) with FWDL in relation to the corporate exercise.

The indicative price of RM1.26 a share represents a 10% discount to the five-day weighted average market price of Yong Tai’s shares immediately preceding the date of the SSA.

Yong Tai group CEO Datuk Wira Boo Kuang Loon said the decision to increase its equity participation in the company demonstrates Co-Prosperity’s commitment and confidence in the group’s business direction.

“The decision is also in line with Co-Prosperity’s business plan to expedite its development and diversification into the media, cultural and entertainment business as Yong Tai group is involved in tourism and cultural related developments,” he added.

The proposed private placement is subject to the approval of relevant authorities and the shareholders of Yong Tai at an EGM.

Yong Tai had also announced the termination of memorandum of understanding with Terrawest Resources Sdn Bhd for the proposed acquisition of 1.5 acres land in Puchong to focus on the development within the Impression City project, especially the Impression Melaka theatre.

Yong Tai rose 0.72% to RM1.39 yesterday with 1.03 million shares traded.