Hatten Land unit acquires remaining minority interests in two Malacca development sites

MALAYSIAN property developer Hatten Land's wholly owned subsidiary is planning to acquire the remaining minority interests in two development sites in Malacca for about RM28.9 million (S$9.6 million).

The Catalist-listed firm said in a late Singapore Exchange filing last Friday that Sky Win Management Consultancy Pte Ltd had entered into two sale and purchase agreements with Tan Ping Huang Edwin, the holder of the minority interests in Rico Development Sdn Bhd (RDSB) and Rico Ventures Sdn Bhd (RVSB), on Dec 15.

The proposed acquisition will see Sky Win acquiring 15 per cent of the issued and paid-up share capital of RDSB for an aggregate consideration of RM8.25 million.

This is based on the allotment and issuance of 10.6 million new ordinary shares of the company at S$0.25 apiece, representing a premium of about 36.6 per cent to the volume weighted average price of S$0.183 for each share as of Dec 14, 2017, being the full market day preceding the date of the agreement.

Sky Win is also seeking to acquire 25 per cent of the issued and paid-up share capital of RVSB for about RM20.6 million.

This will come from the allotment and issuance of about 26.6 million new shares at S$0.25 apiece, a premium of approximately 36.6 per cent to the volume-weighted average price of S$0.183 for each share as at Dec 14.

The exchange rate applicable to the issuance of shares of both proposed deals is S$1:RM3.10.

Hatten will be seeking shareholders' approval for the allotment and issuance of the shares to Mr Tan at an extraordinary general meeting to be convened, and will not utilise the general share issue mandate of the company.

Last month, Hatten announced that it will acquire a 85 per cent stake in RDSB, which owns the 6.1 acre (2.5 ha) freehold land parcel, for RM46.8 million, as well as a 75 per cent stake in RVSB, which owns the 6.7 acre leasehold land of 99 years expiring in May 2108, for RM61.9 million.

Hatten closed 0.3 Singapore cent higher, or 1.7 per cent, to S$0.182 on Friday.