Greenyield enters into SPA with MKH Bhd to acquire property

KUALA LUMPUR (Jan 23): Greenyield Bhd today entered into a sale and purchase agreement (SPA) with Serba Sentosa Sdn Bhd to acquire a six-storey shop office in Kajang for a total cash consideration of RM5.7 million through its wholly-owned subsidiary, Gim Triple Seven Sdn Bhd.

Principally engaged in property development, Serba Sentosa is a wholly-owned subsidiary of MKH Bhd.

In a filing with Bursa Malaysia today, the group said the property is intended to be used as a new corporate head office for the company and its subsidiaries.

The property has a total build-up of approximately 10,421 sq ft, and is situated close to an existing KTM station and an upcoming MRT station, it said.

The property is expected to generate a better image for the Greenyield Group and satisfy Greenyield’s growing need for talent and headcount, it added.

In addition, the company said the board believes the property has potential for value appreciation given its strategic location and accessibility.

The company said that barring any unforeseen circumstances, the proposed acquisition is expected to be completed within four months from the date of the SPA.

“The proposed acquisition will not have any material effect on the earnings per share, net assets per share and gearing of Greenyield for the financial year ending July 31, 2017,” the company said.

The group said that the Board of Directors of Greenyield, after having considered the proposed acquisition, opined that it is in the company’s best interest.

MKH’s shares closed up five sen up or 1.71% at RM2.98, giving it a market capitalisation of RM1.25 billion.

Meanwhile, shares in Greenyield closed up one sen or 4.55% at 23 sen, bringing it to a market capitalisation of RM76.76 million. — theedgemarkets.com