PPB buys stake in property firm from LTAT for RM59m

PETALING JAYA: PPB Group Bhd is acquiring a 16.8% stake in Hillcrest Gardens Sdn Bhd from Lembaga Tabung Angkatan Tentera (LTAT) for RM59.06 million cash.
PPB told Bursa Malaysia that it had on April 26 entered into a sale and purchase agreement with LTAT for the proposed acquisition, which will be funded through internal funds.
Hillcrest, which is involved in property development and property management, reported audited net assets and net profit of RM199.55 million and RM5.72 million for the financial year ended Dec 31, 2017.
LTAT’s original cost of investment in the sale shares, which was incurred in 1976, is RM1.2 million.
PPB said the proposed acquisition will enable the group to expand its investments in property-based activities and to continue diversifying its source of earnings.
In addition, it noted that the 147.78 acres of land owned by Hillcrest is strategically located in Taman Puchong Utama and Taman Sri Gombak. The land is expected to contribute positively to PPB’s future earnings.
PPB’s major shareholder Kuok Brothers Sdn Bhd has a direct and indirect interest of 51.9% in Hillcrest, hence is deemed interested in the proposed acquisition.
Other interested parties include PPB managing director Lim Soon Huat, chairman Tan Sri Oh Siew Nam and director Datuk Ong Hung Hock.
PPB shares gained 2 sen or 0.1% to close at RM19.20 today on some 957,400 shares changing hands.