ATTA Global Group Bhd is to subscribe to a 80% stake in property developer Sunrise Manner Sdn Bhd (SMSB) to fuel its expansion into the property business.
Under the subscription agreement reached with sole shareholders Tang Tiam Hok and Wan Nyuk Ming, SMSB will further allot and issue two million ordinary shares in the company to ATTA for RM20 million. The Penang based developer is currently undertaking a 7.84 ha mixed development in Bukit Mertajam in Seberang Perai Tengah which has an estimated RM544.17 million development value.
ATTA, which is primarily engaged in the iron and steel industries, noted in an exchange filing yesterday, the share subscription will serve as another entry point into the proper development, construction and investment sectors. This will give the group a larger revenue base and create greater value for shareholders in the long term, it said. The proposed exercise is expected to be completed within the next six months.