By Arjuna Chandran Shankar
KUALA LUMPUR (April 9): Property developer Tambun Indah Land is expanding its land bank in Seberang Perai Selatan, Penang, with the acquisition of another 27 parcels of land totalling 209.54 acres for RM131 million cash.
A major portion of the land is located adjoining to the southern side of Tambun Indah’s flagship Pearl City township development.
In a filing with Bursa Malaysia today, Tambun Indah said its 70%-owned subsidiary Mustiara Sdn Bhd has acknowledged a letter of acceptance of offer from landowner TPPT Sdn Bhd to buy the parcels of land.
It added that Mustiara had today paid the acceptance deposit of RM2.62 million, via a proposed provision of financial assistance of up to RM3.45 million through shareholder’s advances by Tambun Indah. The shareholder’s advances are subject to an interest rate of 5.12% per year, calculated on a monthly basis.
The remaining balance of the purchase consideration will be funded via bank borrowings and/or additional financial assistance from the shareholders of Mustiara, said Tambun Indah.
The group noted that the proposed provision of financial assistance is deemed as a related party transaction as 30% stake in Mustiara is held by Tambun Indah’s former non-independent non-executive director Taufiq Ahmad @ Ahmad Mustapha Ghazali. In addition, the directors of Mustiara are Taufiq, Tambun Indah’s managing director Teh Kiak Seng and its executive directors Teh Deng Wei and Teh Theng Theng.
A formal sale and purchase agreement will be entered between Mustiara and TPPT soon.
Tambun Indah shares closed unchanged at 78 sen today, with 168,300 shares done, bringing a market capitalisation of RM338.06 million.