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KUALA LUMPUR, April 5 -- Muar Ban Lee Group Bhd (MBL) has acquired 22 million shares in Symphony Life Bhd, representing 3.5 per cent equity interest from Gajahrimau Capital Sdn Bhd (vendor) for RM20.636 million cash.
In a filing with Bursa Malaysia today, MBL said the acquisition was done via an off-market direct business transaction.
MBL has also entered into a conditional share sale agreement with the vendor for the proposed acquisition of 67 million Symphony shares, representing 10.6 per cent equity interest, for RM62.812 million cash.
"Upon the completion of the proposed acquisition, the net assets of MBL Group will be diversified to include its investment in Symphony which is principally involved in property investment and property development.
"This is in line with MBL Group’s plan to utilise its cash reserves to capitalise on an investment opportunity that may potentially provide the MBL Group with another stream of income through the dividends declared by Symphony, thus diversifying its sources of income to improve shareholders’ value," it said.
In addition to the proposed acquisition, MBL proposes the existing businesses of MBL and its subsidiaries to include its investment in the property investment and property development business of Symphony and its subsidiaries.
It said the board intends to continue with MBL Group’s existing core businesses in the same manner.
"Further, the returns from MBL Group’s investment in Symphony is expected to contribute positively to the earnings of MBL Group if Symphony Group is able to capitalise on the potential upsides from its inventories and investment properties," MBL said.
On prospects, the board expects Symphony to remain resilient amidst the challenging conditions of the property market underpinned by its diverse property development portfolio of residential and commercial projects.
"The diverse property development portfolio of Symphony which are focused on the mid- to high-end property segment that are priced at an affordable value allowing for Symphony to remain competitive among other industry players," it added.