Y&G gets shareholders' nod for acquisitions

KUALA LUMPUR: Property developer, Y&G Corp Bhd, has obtained shareholders' nod to proceed with the proposed KESAS land and related-party acquisitions at its extraordinary general meeting today.

The proposed KESAS land acquisition involves the acquisition of 408.05 hectares (ha) of leasehold land from the Malaysian Agriculture Research and Development Institute for RM100 million cash.

In a statement today, Y&G said the approval, the group;s development landbank would increase four-fold to 154.31 ha from approximately 40 ha.

Its executive director, Datuk Yap Jun Jien, said the KESAS land has the potential to be developed into an integrated township with an estimated gross development value in excess of RM1 billion.

"This will be our new flagship project, showcasing our development ability in innovative designs and concepts to create new communities in affordable homes," he said.

The acquired companies in the proposed related-party acquisitions had 15.26 ha within the respective vicinities of Kapar, Shah Alam and Seri Kembangan which have ongoing development or developments which were expected to commence soon.

Y&G is proposing to acquire these companies for RM25.82 million through the issuance of irredeemable convertible preference shares (ICPS) at an issue price of RM1 per ICPS, together with free warrants on the basis of one warrant for every two ICPS issued, the group said