Magna Prima to acquire the remaining 30% equity in Magna Ecocity Sdn. Bhd. comprising 1,114,286 ordinary shares for a purchase consideration of RM45.5 million.
Upon completion of the Proposed Acquisition, Magna Ecocity shall become 30% owned by Magna and the remaining 70% owned by its direct wholly owned subsidiary of Magna, Magna Prima Development Sdn Bhd.
As of the date of this announcement, the issued share capital of Magna Ecocity is RM3,714,286.00 comprising 3,714,286 ordinary shares.
The group views the proposed acquisition as being in line with Magna Ecocity’s principal activities of property development. It represents a strategic opportunity for the company to unlock the value of its investments for the benefit of the shareholders of Magna. The proposed acquisition will also enable the full consolidation of Magna’s interest in its subsidiary,
Magna Ecocity and will enhance the future profitability of the Group as the Group will be able to fully consolidate the earnings of Magna Ecocity.
The proposed acquisition is expected to contribute positively to Magna Group in the future given the favorable outlook and prospects of the property development industry, thus enhancing Magna’s shareholders’ value in the medium to long term.
