GAMUDA TO EXPAND VIETNAM OPERATION VIA RM1.47 BLN ACQUISITION
KUALA LUMPUR, July 20 (Bernama) -- Gamuda Bhd announced that its property arm, Gamuda Land Sdn Bhd, has proposed to acquire a 100 per cent stake in Tam Luc Real Estate Corporation for 7.2 trillion Vietnamese dong (about RM1.47 billion) as part of its expansion plan in Vietnam.
For this purpose, Gamuda Land's wholly-owned foreign sub-subsidiaries, namely Van Lam Investment Limited (Ltd) Company, Truong Tin Construction and Housing Trading Company Ltd and Gamuda Land Nam Viet Investment Company Ltd have entered into a share transfer agreement with vendors, Nguyen Hong Giang, Nguyen Van Viet and Dang Thi Dung, who collectively owns the company.
In a filing to Bursa Malaysia today, Gamuda said the acquisition will be funded via internally generated funds (42 per cent ) and borrowings (58 per cent).
Tam Luc Real Estate is the holding company which owns a 3.7-hectare project land in Tam Luc City. The project land is for residential and commercial purposes.
"The proposed acquisition is in line with Gamuda Land’s emphasis on international projects in its portfolio, which accounted for two-thirds of its property sales in financial year 2022.
"This strategy has seen the group through the challenging economic outlook of recent quarters, providing stable lines of revenue amid weaker sentiment and currency fluctuations in the domestic market," it said.
With a gross development value of RM5.1 billion, the proposed acquisition is set to contribute to the earnings of the group over the next five years.
-- BERNAMA
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