KUALA LUMPUR, Jan 3 – Boustead Holdings Bhd (BHB) has said Increasing its landbank is the reason
to buy 80 per cent of Astacanggih Sdn Bhd, adding today it was purely commercial decision.
Pakatan Rakyat (PR) officials have called the RM30 million paid for the Astacanggih stake and another RM130 million for 80.9371ha of Bukit Raja land in Selangor as a bailout for Selangor Wanita Umno chief Senator Datuk Seri Raja Ropiaah Abdullah.
Carpet dealer Deepak Jaikishan had dropped his suit against Raja Ropiaah over the land sale earlier, although he has lamented that the deal benefited the politician.
In a filing to Bursa Malaysia today, BHB said economies of scale can be achieved by combining the land with the adjacent 283.28 ha. land held under Jendela Hikmat Sdn Bhd, which the Boustead Group and Lembaga Tabung Angkatan Tentera (LTAT) jointly hold a 60 per cent equity interest.
Based on its experience, BHB said it is confident the acquisition of the development land will be able to generate a return on development cost of 25 per cent from the RM160 million investment.
On Dec 27, 2012, BHB announced its wholly-owned subsidiary Bakti Wira Development Sdn Bhd was acquiring an 80 per cent stake in Astacanggih Sdn Bhd.
The acquisition formed part of the corporate exercise to acquire an 80 per cent interest in the 80.9371 ha. development land in Bukit Raja at a total price of RM160 million or RM18.37 per square feet.
In the filing, BHB and Bakti Wira Development had started negotiations with Awan Megah Sdn Bhd on their proposed sale of the Bukit Raja land on April 11, 2005.
BHB received an offer letter from the shareholders of Astacanggih on their proposed sale of Astacanggih on June 15, 2012.
However, the group was only able to conclude the final agreements in the third week of December 2012 after a prolonged negotiation with the respective parties.
In a media statement, LTAT said it did not play a role in the commercial decision made by BHB.
LTAT chairman Admiral ® Tan Sri Mohd Anwar Mohd Nor also reiterated it was to expand the company’s landbank.
“Astacanggih currently does not have any bank loan, and will make a loan to finance the acquisition and land development in Bukit Raja,” he said.
Mohd Anwar said LTAT will closely monitor all its investments including in Boustead to ensure they bring the best returns for LTAT’s contributors, who are Malaysian Armed Forces (ATM) personnel.
“LTAT has full confidence that the land development project will be successful, like other Boustead land development projects, besides providing affordable houses for purchase by ATM personnel,” he added.
to buy 80 per cent of Astacanggih Sdn Bhd, adding today it was purely commercial decision.Pakatan Rakyat (PR) officials have called the RM30 million paid for the Astacanggih stake and another RM130 million for 80.9371ha of Bukit Raja land in Selangor as a bailout for Selangor Wanita Umno chief Senator Datuk Seri Raja Ropiaah Abdullah.
Carpet dealer Deepak Jaikishan had dropped his suit against Raja Ropiaah over the land sale earlier, although he has lamented that the deal benefited the politician.
In a filing to Bursa Malaysia today, BHB said economies of scale can be achieved by combining the land with the adjacent 283.28 ha. land held under Jendela Hikmat Sdn Bhd, which the Boustead Group and Lembaga Tabung Angkatan Tentera (LTAT) jointly hold a 60 per cent equity interest.
Based on its experience, BHB said it is confident the acquisition of the development land will be able to generate a return on development cost of 25 per cent from the RM160 million investment.
On Dec 27, 2012, BHB announced its wholly-owned subsidiary Bakti Wira Development Sdn Bhd was acquiring an 80 per cent stake in Astacanggih Sdn Bhd.
The acquisition formed part of the corporate exercise to acquire an 80 per cent interest in the 80.9371 ha. development land in Bukit Raja at a total price of RM160 million or RM18.37 per square feet.
In the filing, BHB and Bakti Wira Development had started negotiations with Awan Megah Sdn Bhd on their proposed sale of the Bukit Raja land on April 11, 2005.
BHB received an offer letter from the shareholders of Astacanggih on their proposed sale of Astacanggih on June 15, 2012.
However, the group was only able to conclude the final agreements in the third week of December 2012 after a prolonged negotiation with the respective parties.
In a media statement, LTAT said it did not play a role in the commercial decision made by BHB.
LTAT chairman Admiral ® Tan Sri Mohd Anwar Mohd Nor also reiterated it was to expand the company’s landbank.
“Astacanggih currently does not have any bank loan, and will make a loan to finance the acquisition and land development in Bukit Raja,” he said.
Mohd Anwar said LTAT will closely monitor all its investments including in Boustead to ensure they bring the best returns for LTAT’s contributors, who are Malaysian Armed Forces (ATM) personnel.
“LTAT has full confidence that the land development project will be successful, like other Boustead land development projects, besides providing affordable houses for purchase by ATM personnel,” he added.
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