OCR Group Bhd is acquiring a 49% equity interest in Chester Properties Sdn Bhd for RM19.6 million, as it seeks to expand into property marketing.
The developer aid it had entered into a conditional share sale agreement with Dato’ Howard Chew Si Hoo to acquire 245,000 ordinary shares, representing a 49% stake in Chester Properties.
The purchase consideration will be satisfied entirely through the issuance of 478.05 million new OCR shares at an issue price of 4.1 sen per share.
The acquisition follows a heads of agreement first announced in March this year, with both parties extending negotiations until August before finalising the definitive agreement.
Upon completion, Chester Properties will become a 49%-owned associate company of OCR.
OCR believes the partnership will provide direct access to Chester Properties’ extensive sales network, enabling the developer to reach a broader pool of prospective purchasers while improving the sales performance of its future developments.
The company also expects to benefit from Chester Properties’ market intelligence and customer insights, allowing OCR to better align future projects with evolving buyer preferences and market demand.
OCR explained that it is acquiring only a 49% stake because Malaysian regulations governing estate agencies require at least 51% equity ownership to remain with registered estate agents.
