ACME acquires 50% stake land holder for RM22.4m

ACME Holdings Bhd is acquiring one ordinary share, representing 50% equity in Pedoman Canggih Sdn Bhd, for RM22.4 million.

The acquisition agreement was signed today with Bon Holdings Sdn Bhd as the vendor.

The principal asset of Pedoman Canggih is a freehold piece of land in Penang, valued at RM67.3 million, based on an independent valuation.

The acquisition will be financed through a combination of internally generated funds and bank borrowings.

Pedoman Canggih has primarily been an investment holding company, and its financial statements for 2023 show a net loss of RM34,056 and liabilities of RM5.7 million.

The land held by Pedoman Canggih is intended for property development, aligning with ACME’s strategic goal of expanding its property development activities.

While there are some risks associated with the acquisition, including the potential non-fulfillment of acquisition terms and concerns over cash flow, ACME believes that the acquisition will support the company’s long-term growth prospects.

The transaction is not expected to impact ACME’s share capital or earnings in the short term.

However, the future development of the land may contribute to ACME’s earnings. The acquisition is expected to be completed by the first half of 2025. — TMR

RELATED ARTICLES