KUCHING: Bonia Corporation Bhd (BON) announced that its wholly-owned subsidiary, CRG Incorporated Sdn Bhd (CRG), has entered into seven sales and purchases agreements (SPAs) with Platinum Starhill SB for the purpose of acquiring an office block known as Block C, for a total purchase consideration of RM20.9 million was generally seen by analysts as positive.
“The office block, located in Ulu Langat in Selangor, comprises seven parcels under the project named “Platinum Starhill Business Centre”, which sits on a total area of about 41,873 square feet,” outlined RHB Research Institute Sdn Bhd (RHB Research) in a research report yesterday.
The research firm noted that the deal was sealed on a willing buyer willing seller basis.
This is the third office block purchased by the group, which will utilise it for CRG’s Carlo Rino operation.
“We deem the acquisition fair as the prices of similar project developments in the surrounding areas are changing hands at about RM500 to RM570 per square feet.
“Bonia will settle 30 per cent of the purchase price with internally-generated funds and the remainder by borrowings.
As of December 2012, the group has net debts of RM16.1 million and 5.7 per cent net gearing.
“Upon completion of the transaction, the company’s net debt will increase to RM37 million, which will bump up its net gearing to 13 per cent, a level that is still acceptable.”
The acquisition is expected to be completed by FY14.” From this move, RHB Research maintained a buy call on Bonia, pegging a fair value of RM2.62 per share.