PETALING JAYA: Ewein Bhd is acquiring a further 16% equity interest in Ewein Zenith Sdn Bhd for RM160,000 cash, which will increase its stake in the company from 73% to 89%.
In a filing with Bursa Malaysia today, Ewein’s wholly owned subsidiary Ewein Land Sdn Bhd said it had entered into a share sale agreement with Consortium Zenith Construction Sdn Bhd for the proposed acquisition.
Upon completion of the acquisition, Ewein Zenith will become an 89%-owned subsidiary of Ewein while Consortium Zenith Construction shall own the remaining 11% equity interest.
Post-acquisition, Ewein will be able to capture 89% of the profit generated by Ewein Zenith for the financial year ending Dec 31 compared with 60% in the previous financial year.
“With the increased ownership of Ewein Zenith, Ewein will have even more control of Ewein Zenith, which forms the development arm of the group. This will maximise the profits of the development division attributable to Ewein and benefit the shareholders of Ewein,” it said.
Pursuant to the increase in Ewein Land’s equity interest in Ewein Zenith, Ewein Land will also advance RM21.28 million to Ewein Zenith, which will be used to settle part of the balance amount owed by Ewein Zenith to Consortium Zenith Construction for a plot of land in Penang.
The land, measuring 3.67 acres, was previously acquired from Consortium Zenith Construction at RM133 million. The advancement will reduce the sum owed by Ewein Zenith to RM14.63 million.
Ewein Zenith is currently constructing its maiden property development project in Penang, the RM800 million luxury sea-front development known as City of Dreams in Bandar Tanjong Pinang, which is expected to be completed by end 2019.
Ewein’s share price fell 12.98% or 8.5 sen to close at 57 sen today with 11.37 million shares done.