PETALING JAYA, 7 July: Yong Tai Bhd has extended the period to meet the conditions in the proposed acquisition of Apple 99 Development Bhd for RM15 million and the proposed subscription of a 70% stake in Iconic Paragon Sdn Bhd for RM933,334, for three months, until Oct 6, 2017.
Apple 99 is principally involved in property development and property investment; while Iconic Paragon is involved in investment holding and property development. Yong Tai had entered into agreements for the proposals in April.
In a stock exchange filing, Yong Tai said the conditions in the subscription agreement have yet to be satisfied and that the three months to fulfil the conditions expired yesterday.
The proposed Apple 99 acquisition serves as an opportunity for Yong Tai to gain control of a mixed development project in Malacca comprising a 32-storey block of service apartments, a 16-storey four-star hotel known as “Courtyard by Marriot” and the podium.
The group intends to retain its investment in the hotel for the longer term in view of the increasing number of tourist arrivals in Malacca, which in turn is expected to generate recurring income for the group.
The conditions for the proposed acquisition include Yong Tai’s satisfaction with the results of the due diligence exercise to be conducted on Apple 99 and obtaining the approval of its shareholders in a general meeting for the acquisition.
Meanwhile, the proposed subscription will see the group grow and expand its property development portfolio beyond Malacca and into the Klang Valley, specifically into the strategic and prime locality within the vicinity of the Kuala Lumpur City Centre area of Bukit Bintang.
The conditions in this proposed subscription includes obtaining the approval of its shareholders in an EGM; Yong Tai is satisfied with the outcome of the legal and financial due diligence on Iconic Paragon; there has been no significant material adverse change to the business climate or financial conditions and more.
Yong Tai closed 1.38% higher at RM1.47 yesterday, with 1.07 million shares traded, for a market capitalisation of RM640.457 million.
— THE SUN