Citaglobal Berhad said it has obtained shareholders’ approval at its Extraordinary General Meeting for two previously announced corporate proposals, mainly on a private placement of 46,768,000 new ordinary shares to Berjaya Securities Sdn Bhd at a subscription price of RM0.90 per share, which is expected to raise gross proceeds of approximately RM42.1 million.
The proceeds will support the Group’s funding requirements, including the cash consideration relating to the completed Gebeng Land Acquisition, expansion and investment in existing businesses, including renewable energy and bioenergy initiatives, alongside working capital and placement-related expenses.
Concurrently, shareholders approved the proposed joint venture between Citaglobal Property Development Sdn Bhd, an indirect wholly-owned subsidiary of the Group, and Varia Crest Sdn Bhd, an indirect wholly-ownedsubsidiary of Varia Berhad. The mandate allows the Group to proceed with a mixed development on a 1.58-acre leasehold parcel along Jalan Tun Razak, to be known as the Citaglobal Tower Development.
With an estimated gross development value of approximately RM657 million, the development comprises a Grade A office tower, serviced apartments, commercial shop lots, and a multi-level podium parking facility. Under the joint venture structure, Varia Crest will be responsible for the planning, development, construction, marketing, and funding of the development. In consideration of the land contribution, Citaglobal Property Development is entitled to a package estimated at approximately RM118.0 million, comprising cash, repayment by Varia Crest to BIMB in accordance with the land acquisition loan repayment schedule, office space entitlement
and consideration in-kind, together with a potential profit uplift
The Proposed JV it added is expected to generate an estimated gain of approximately RM26.7 million for the Group, subject to the fulfilment of the relevant conditions precedent.
