DBE pays RM5.4m for Kinta land

PETALING JAYA: DBE Gurney Resources Bhd is buying 11.33ha of land in Kinta, Perak, for RM5.39 million to diversify into the property development industry.
The company said its wholly owned subsidiary DBE Development Sdn Bhd had on June 5 entered into a conditional sale and purchase agreement with Glitter Holdings Sdn Bhd for the purchase.
DBE said the acquisition is in line with its strategy to diversify into property development, with stronger growth prospects instead of depending solely on its existing poultry business.
“With a potential GDV of approximately RM55.6 million, the board believes that the proposed land acquisition will contribute positively to the group’s future earnings and strengthen its financial position.”
The purchase sum and land development cost will be funded via internally generated funds as well as the remaining unutilised proceeds raised from its redeemable convertible notes.
Nonetheless, it will also consider the availability of bank borrowings and the exact mix of the financing structure will be determined at a later stage, after taking into consideration the gearing level, interest costs and internal cash requirements for its business operations.
DBE’s share price gained 16.7% to close at 3.5 sen today with some 468,000 shares changing hands.