See Hup raises stake in Kimsar

PETALING JAYA: See Hup Consolidated Bhd is acquiring an additional 32.9% stake in Kimsar Sdn Bhd for RM1.80 million, raising its stake in the property developer from 14.47% to 47.37%.
The group told the stock exchange that it will be purchasing 31.41% equity interest, representing 1.14 million shares, from Seven Success Sdn Bhd for RM1.72 million cash and 1.49% equity interest representing 54,587 ordinary shares from LHG Holdings Sdn Bhd for RM81,880.50 cash.
The funds for the purchase will be sourced internally.
The group said the acquisition is part of its plan to diversify its revenue sources to reduce dependency on its existing core business of providing transportation and logistics services.
"The group believes that investing in Kimsar, which has access to a large land bank, will allow it to leverage on its business options to include property development, which has strong growth prospects, into its revenue base. This will be beneficial to the group’s future earnings,” said its board of directors.
Kimsar has 41.54% equity interest in Kim Ma Supertiles Sdn Bhd via its wholly owned subsidiary Iping United Development Sdn Bhd, which in turn owns 10 parcels of freehold vacant land in Seberang Perai Utara, Penang.
See Hup's shares were untraded on Friday.