EcoWorld Acquires Remaining 40% Stake in Paragon Pinnacle for RM184mil
Group Now Wholly Owns Paragon Pinnacle Sdn Bhd
EcoWorld Development Group Bhd (EcoWorld Malaysia) has acquired the remaining 40% stake in Paragon Pinnacle Sdn Bhd (PPSB) from Employees Provident Fund (EPF) subsidiary, Tanjung Wibawa Sdn Bhd (TWSB) for RM184.08 million.
Joint Development Project
PPSB, now wholly owned by EcoWorld Malaysia, is undertaking a mixed residential and commercial development known as Eco Grandeur, as well as Eco Business Park V, both located in Puncak Alam, Selangor.
Background of the Acquisition
The acquisition arose from the exercise of a put option by TWSB in accordance with the terms of a subscription and shareholders’ agreement (SSA) signed between EcoWorld Malaysia and EPF in 2016. The SSA was signed on November 15, 2016, for PPSB to participate in joint projects with EcoWorld Malaysia.
Put Option Exercise
TWSB was granted a put option at the time of its subscription to PPSB in 2016, which can be exercised after the expiry of eight years from the date of PPSB’s first utilisation of the shareholders’ advances from TWSB.
Positive Impact on Future Earnings
EcoWorld Malaysia is optimistic that the acquisition will contribute positively to the group’s future earnings and augur well for its prospects for the remaining landbank in PPSB.
Landbank Details
As at October 31, 2024, the undeveloped landbank at Eco Grandeur and Eco Business Park V stood at 310.4 hectares and 111.3 hectares respectively, with a combined remaining gross development value of about RM9.5 billion. Collectively, Eco Grandeur and Eco Business Park V have recorded cumulative sales of RM4.4 billion.
Conclusion
The acquisition of the remaining 40% stake in Paragon Pinnacle Sdn Bhd is a significant step forward for EcoWorld Malaysia, providing a strong foundation for future growth and development. The group’s optimism is reflected in its outlook for future earnings and prospects for its remaining landbank in PPSB.
FAQs
* What is the purpose of the acquisition?
The acquisition is to purchase the remaining 40% stake in Paragon Pinnacle Sdn Bhd (PPSB) from Employees Provident Fund (EPF) subsidiary, Tanjung Wibawa Sdn Bhd (TWSB) for RM184.08 million.
* What is PPSB’s current project status?
PPSB is undertaking a mixed residential and commercial development known as Eco Grandeur and Eco Business Park V, both located in Puncak Alam, Selangor.
* What is the significance of the put option exercise?
The put option exercise allows TWSB to sell its remaining 40% stake in PPSB to EcoWorld Malaysia, resulting in the group’s full ownership of PPSB.