Hua Yang acquires 10.8% equity stake in Magna Prima

KUALA LUMPUR (Jan 25): Hua Yang Bhd announced it has acquired 36 million shares in Magna Prima Bhd, equivalent to a 10.84% stake, for a purchase consideration of RM66.6 million, via an off-market direct business transaction.

The group said the acquisition is part of its objective to invest in strategic landbank, noting Magna Prima’s landbanks in Klang Valley which presents an opportunity for further collaboration between the two developers.

According to Hua Yang’s bourse filing, some 18.63 million shares were acquired from Chun Yee Ying, and the balance 17.37 million shares were acquired from Chun Mei Ngor, at a consideration of RM1.85 per share.

The price tag offers a 13% premium over Magna Prima’s closing price of RM1.63 today.

“The purchase consideration of RM1.85 per purchase share was arrived at on a willing buyer-willing seller basis, after taking into consideration Hua Yang’s evaluation on Magna Prima’s landbank and development potentials on such landbank,” it said.

Hua Yang closed 2 sen or 1.82% lower at RM1.08 today, giving it a market capitalisation of RM380.16 million.— theedgemarkets.com