Oxley unit acquires 5% stake in Malaysia land owner

OXLEY Holdings Limited said its wholly owned subsidiary, Oxley Star Sdn Bhd, has acquired a 5 per cent stake in Beverly Heights Properties Sdn Bhd (BHP) for RM22.5 million (S$7.6 million).

The 50,000 ordinary shares are to be acquired from two vendors with whom Oxley Star inked a shares sale agreement on Wednesday. Following this, Oxley Star will hold a 10 per cent stake in BHP and the balance will be held by four other individuals.

This came after Oxley Star was granted the absolute, exclusive and irrevocable authority, power and right in, over and to the development of the land owned by BHP. The sites are both situated in Penang, Malaysia.

BHP is the sole beneficial and registered owner of the land, and intends to develop the land into a township with commercial units and higher density residential units and conduct its business as a housing developer.

Based on the audited financial statements of BHP as at Dec 31, 2017, BHP had a net liability of RM8.4 million. According to a valuation report commissioned by BHP, the market value of the land as at Feb 20, 2017 was RM410 million based on certain assumptions.

The consideration has been funded by internally generated funds and bank borrowings, Oxley said.