Share
PETALING JAYA (Sept 18): Rekatech Capital Bhd has belatedly disclosed agreements by a wholly-owned subsidiary to acquire two Mansion One units in Penang from related parties for a combined RM2.16 million.
In a Bursa Malaysia filing on Friday (Sept 18), the ACE Market-listed company said Rekatech Suites Management Sdn Bhd (RSMSB), formerly known as Mega Sun Consortium Sdn Bhd, entered into the sale and purchase agreements on Jan 19, 2021 with Northern Prominence Sdn Bhd and YMS Corporate Services Sdn Bhd.
Rekatech said the transactions had not previously been announced. Following a subsequent review, the company determined that they were required to be disclosed as related-party transactions under Rule 10.08 of the ACE Market Listing Requirements.
Northern Prominence agreed to sell a 1,200 sq ft unit on Level 29 of Mansion One, Jalan Sultan Ahmad Shah, for RM1.32 million, while YMS Corporate Services agreed to sell a 765 sq ft unit on the same level for RM841,500.
Both units form part of land held under Geran 80387, Lot 1250, Seksyen 13, Bandar Georgetown, Daerah Timur Laut. The filing did not state whether the acquisitions had been completed.
Northern Prominence is equally owned by Rekatech director Datuk Seri Liang Chee Fong and his wife, Datin Sri Komathi Lalitha A/P Veeriah.
YMS Corporate Services is 90%-owned by Rekatech director Datuk Yow Mooi Sin, with the remaining 10% held by his wife, Nguyen Thi Tinh. Rekatech said Liang and Yow were therefore deemed interested in the acquisitions.
The vendors acquired the respective units in March 2015 for RM1.08 million and RM688,500. The purchase prices represented the market values assigned by independent valuer Oregeon Property Consultancy Sdn Bhd in a valuation dated Jan 6, 2021 using the comparison approach, Rekatech said.
Under the agreements, the RM2.16 million consideration was to be paid in cash using internal working capital.
The company said its audit committee considered the acquisitions to be in the company’s best interests, fair and reasonable, on normal commercial terms and not detrimental to minority shareholders.
The board, excluding Liang and Yow, who abstained from deliberation and voting, also considered the acquisitions to be in the group’s best interests.
The highest applicable percentage ratio was 3.8221%, based on Rekatech’s audited consolidated financial statements for the financial year ended June 30, 2020. The transactions did not require shareholder or regulatory approval.
..........
EdgeProp monthly brings you data, insights and solutions for an evolving market. Subscribe now for your free copy!
