Eastland Equity Bhd’s acquisition of 92 commercial units at Bandar Tun Razak Park in Pahang as well as the capital reduction and diversification to improve its financial position is fair and reasonable and not detrimental to the interest of the non-interested shareholders of Eastland.
In a circular to shareholders, TA Securities said that accordingly, it recommends that non-interested shareholders of Eastland vote in favour of the Proposed Acquisition at the Company’s forthcoming EGM.
On March 18 Eastland Equity Bhd announced that is was planning to acquire 92 commercial units at Bandar Tun Razak Business Park in Jengka, Pahang, as well as undertake a capital reduction exercise and business diversification, to improve its financial position.
In a bourse filing, the company said its wholly-owned subsidiary FBO Land (Setapak) Sdn Bhd has inked a conditional sale and purchase agreement with Eastland, Top Land Resources Sdn Bhd, Mentiga Development & Construction Sdn Bhd and Leading Ventures Sdn Bhd for the purchase of the commercial units for RM24.8 million, to be satisfied via the issuance of 381.54 million new shares at 6.5 sen apiece.
It said the move is in line with its investment objectives and growth strategy to provide Eastland with a sustainable and stable income stream, and to grow its net asset value per share by acquiring high quality, earnings accretive properties with strong recurring income.