KUALA LUMPUR, Sept 23 (Bernama) -- Ecofirst Consolidated Bhd has proposed to acquire the remaining 49 per cent stake in BCM Holdings Sdn Bhd from Tan You Tiong for a cash consideration of RM78.4 million.
Currently, Ecofirst Consolidated owns 51 per cent stake in BCM.
In a filing with Bursa Malaysia today, the property developer said upon the completion of the proposed exercise, which is expected to be in the first quarter of 2023, BCM would become a wholly-owned subsidiary of the company.
“The purchase consideration of RM78.4 million is proposed to be fully funded via a combination of internally generated funds and/or bank borrowings,” it said.
Ecofirst Consolidated said BCM’s current properties comprised two adjoining freehold land measuring a total of 1.69 hectares in Seksyen 92, Kuala Lumpur, about 5.9 kilometres south of Petronas Twin Towers with a market value of RM206.5 million.
It said BCM had also secured a development order from Kuala Lumpur City Hall (DBKL) for a proposed development with a gross development value of about RM1 billion and gross development cost (GDC) of RM620 million.
“Upon completion of the proposed acquisition, the BCM properties will form part of the group’s landbank.
“Barring any unforeseen circumstances, the group is expected to recognise a gross profit of approximately RM380 million across the estimated development period of four years,” it said.
Moving forward, it said notwithstanding the recovering property market, Ecofirst Consolidated expects the prospects of the BCM properties to be positive and improve over time as and when the property market gradually recovers.
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