KANGER TO BUY SERVICE APARTMENTS IN GENTING HIGHLANDS FOR RM142.9 MLN

KUALA LUMPUR, Feb 24 -- Bamboo flooring and furniture maker Kanger International Bhd, which is diversifying into property investment and management, has proposed to acquire 126 units of service apartments in Genting Highlands, Pahang, for RM142.87 million.

In a filing with Bursa Malaysia today, the company also announced a renounceable rights issue with free detachable warrants to raise estimated gross proceeds of up to RM286.19 million, which will partly be used to pay for these units.

Kanger's wholly-owned subsidiary, Kanger Ventures Sdn Bhd, today signed a conditional agreement to acquire the apartment units, located on the 30th to 45th floors of Tower A, Antara@Genting Highlands, from its developer Aset Kayamas Sdn Bhd.

Construction of Antara @ Genting Highlands is expected to be fully completed within 54 months. 

In a media statement, Kanger executive director Steven Kuah Choon Ching said the company planned to convert the service apartments into a comprehensive wellness centre facility offering stem cell treatments that enhance people’s health and well-being.

“We believe the nice cooling weather in the mountains of Genting Highlands would offer a conducive environment for customers to choose our location to undergo their treatment and recovery of stem cell therapy,” he said.

According to him, Kanger is optimistic that Genting Highlands will continue to grow as a vibrant tourist destination in the years to come.

“Expanding our property investment portfolio to Genting Highlands would put the group in a strong position to capitalise on the future growth prospects and increase in visitor traffic there,” he said.

On the proposed rights issue with warrants, Kanger plans to issue up to 2.86 billion rights shares on the basis of one rights share for every one existing Kanger share held, together with one Warrant B for every rights share subscribed.

The company gave the indicative issue price as 10 sen per rights share, which would see it raise between RM20 million and RM286.19 million.

Kanger is also proposing to diversify into construction and related activities. It intends to apply for a G7 contractor licence by the third quarter of 2021.

“The group aims to diversify and expand the group’s source of earnings via generating an additional stream of revenue and income from the construction business, which may include, amongst others, undertaking building construction, civil engineering and project management contracts as main contractor or subcontractor,” it said.

-- BERNAMA