Grand-Flo > announcement > proposed acquisition 52% JBSB for RM 2.44 million

This announcement is dated 1 August 2013

The Board of Directors of Grand-Flo wishes to announce that Grand-Flo Capital Sdn Bhd ("GCSB" or the "Puchaser"), a wholly-owned subsidiary of Grand-Flo, had on 1 August 2013, entered into a conditional share acquisition agreement with Loyang Ekuiti Sdn Bhd ("Loyang Ekuiti" or the "Vendor") for the proposed acquisition of 520,000 ordinary shares of RM1.00 each in JBSB ("Sale Shares"), representing 52% of the issued and paid-up share capital of JBSB for a total purchase consideration of RM 2,440,000

Upon completion of the Proposed Acquisition, JBSB will become a 52%-owned subsidiary of Grand-Flo.

Salient points :

1. JBSB
- principally engaged in the business of housing development.
- JBSB has net assets (NA) of RM 1.01 million

2. The Land
- 3.29 hectares, Freehold
- Lot 22993 Seberang Perai Tengah
- land category : Building
- locality : A residential development land beside Taman Villa Impian, Alma, Bukit Mertajam
- Market value : RM15,600,000
- Net book value  : RM13,538,415

3. PROSPECTS OF THE LAND

The Board is of the view that the prospects of the Land will be positive and favourable due to, amongst others, the strategic location of the Land. Based on the Valuation Report, theLand is situated about 2.5 km (1.6 miles) from the Jalan Kulim/ Jalan Rozhan junction and about 7.5 km (4.7 miles) to the south-east of the Bukit Mertajam town centre. The Land is accessible from Jalan Rozhan via Jalan Alma Jaya. Jalan Alma Jaya leads to the Jesselton Hills housing scheme located to the north-east of the Land.

The Land is located beside Taman Villa Impian that is developed with double-storey detached houses, a playground/open space, a retention pond and a Tenaga Nasional Berhad (TNB) sub-station. Within the vicinity, there are double-storey detached houses, doublestorey shop offices, five (5) storey-flats, the Asas Parade, Tesco Hypermarket, proposed AEON Shopping Centre (JUSCO), double-storey terraced and semi-detached light industrial buildings, primary schools, petrol filling stations, kampung houses and rubber and oil palm smallholdings.

In addition, the Land is located nearby other housing and industrial schemes that include Taman Impian Alma, Taman Budiman, Taman Seri Impian, Taman Selamat, Taman Hwa Seng, Taman Nirwana, Taman Megajaya Alma, Taman Selesa, Taman Sri Kijang, Taman Impian Ria, Taman Impian Indah and Taman Industri Alma Jaya. A new housing scheme viz Jesselton Hills is also currently under construction nearby to the north-east of the Land. Another housing scheme viz Permatang Sanctuary is also planned to be
developed/constructed a short distance to the south of the Land.

With the strategic location of the Land, the Board expects that the locality of the Land will fast develop into a preferred neighbourhood and will be in a position to benefit from favourable market demand and selling price, and thereby contributing positively to the future earnings of the Grand-Flo Group.