TAKE OVER: Boustead has announced that its recent acquisition is a corporate exercise that presents an opportunity for the group to increase its land bank.
KUALA LUMPUR: Boustead Holdings Bhd (Boustead) announced that its recent acquisitions regarding shares in Astacanggih Sdn Bhd (Astacanggih) was a corporate exercise that presents an opportunity for the group to increase its land bank.
In a filing to Bursa Malaysia yesterday, Boustead said economies of scale could be achieved by combining the 80.9371 hectare (ha.) development land at Bukit Raja with the adjacent 283.28 ha. land held under Jendela Hikmat Sdn Bhd (Jendela Hikmat).
Jendela Hikmat is a company in which the Boustead Group and Lembaga Tabung Angkatan Tentera (LTAT) jointly hold a 60 per cent equity interest.
Based on its experience, Boustead said it was confident the acquisition of the development land would be able to generate a return on development cost of 25 per cent from the RM160 million investment. On December 27, 2012, Boustead announced its wholly-owned subsidiary Bakti Wira Development Sdn Bhd was acquiring an 80 per cent stake in Astacanggih.
The acquisition formed part of the corporate exercise to acquire an 80 per cent interest in the 80.9371 ha. development land in Bukit Raja at a total price of RM160 million or RM18.37 per square feet.
Boustead and Bakti Wira Development had started negotiations with Awan Megah Sdn Bhd on their proposed sale of the Bukit Raja land on April 11, 2005.
Boustead received an offer letter from the shareholders of Astacanggih on their proposed sale of Astacanggih on June 15, 2012.
However, the group was only able to conclude the final agreements in the third week of December 2012 after a prolonged negotiation with the respective parties. — Bernama