KUALA LUMPUR,. PPB Group Berhad which is controlled by tycoon Tan Sri Robert Kuok has bought Lembaga Tabung Angkatan Tentera’s (LTAT) entire 16.8 per cent stake in property development company Hillcrest Gardens Sdn Bhd for RM59 million cash.
The purchase price is a 76 per cent premium over Hillcrest’s audited consolidated net assets as at December 31, 2017.
PPB Group, in a filing with Bursa Malaysia, said the premium was deemed “reasonable” after considering the location, as well as the prospects and development potential of the parcels of land owned by Hillcrest.
Hillcrest owns 147.78 acres of freehold land in Taman Seri Gombak and Taman Puchong Utama, both in Selangor.
“The company understands from the vendor that the plots of land have not been revalued in the past 10 years,” it said.
LTAT’s original cost of investment in the company was RM1.2 million back in 1976.
PPB Group said the proposed acquisition of the shares from LTAT, would enable the company to expand its investments in property-based activities and continue diversifying its source of income.
At 9.37am, PPB Group was thinly traded with 300 shares changing hands at RM19.20.