KUALA LUMPUR: Compugates Holdings Bhd (Compugates) recently announced its proposed acquisition of 20,000 ordinary shares of RM1 each, which represented 40 per cent of the entire equity-interest in Selama Muda Jaya Sdn Bhd (SMJSB) for a total cash consideration of RM10 million.
In a recent note to Bursa Malaysia, the proposed acquisition would enable Compugates to own the entire equity capital in SMJSB, including its landbank.
SMJSB owns a piece of vacant land in the Kuala Kangsar district of Perak that is held under 282 titles known as HS (D) 1464-1744 PT 952-1232 and HS (D) 9651 PT 2263.
The said land a leasehold land, expiring on 24th January 2093 according to the land office on Perak and thus far, has remained free from any development and related encumbrances.
Additionally, the lands are strategically located adjacent to the Kuala Kangsar Malay College.
On the prospects of the acquisition, Compugates’ ownership of SMJSB would be in line with its objective of acquiring land for future development, by which the potential mixed development of residential and commercial properties to be undertaken on SMJSB’s lands will provide a new source to its income stream.
Compugates is engaged in providing consumer electrical and electronics products through its subsidiary and associated companies, with notable expertise in coatings and cleantech technologies.
Compugates commenced its business operation since 1997, focusing on providing efficient and prompts after-sales services to its dealers. In 2003, it expanded its business into both Penang and Singapore driven by business growth by 500 folds and new products distribution portfolio.