KUALA LUMPUR: PRG Holdings Bhd plans to buy up to 29.9 per cent stake in Singapore-listed Capital World Ltd to further strengthen its property development segment.
Today, PRG Holdings inked a memorandum of understanding with Capital World to subscribe for new ordinary shares in the company.
The exact terms of the investment are still subject to further negotiations and the satisfaction of conditions, such as both sides finalising and entering into a definitive agreement.
PRG Holdings Group Managing Director Dato’ Lua Choon Hann said, "We look forward to growing hand in hand with Capital World. We can collaborate by introducing the medical and wellness elements in Project Capital City and future development projects which will enhance the appeal of Capital World Limited’s product offering.
"We believe that Capital World Limited’s niche business model of identifying joint venture opportunities in strategic locations to offer unique and innovative products to the market will allow us to stand out from stiff competition,” Lua added.
Capital World had requested to lift its trading halt at 2pm on Singapore stock exchange, today while PRG Holdings' shares on Bursa Malaysia traded unchanged at 77 sen a share.
Capital World, which is based in Johor, is an integrated property developer that focuses on working with landowners on a joint venture basis to enhance the value of landowner's land asset.
Through the joint ventures, Capital World undertakes the concept, design and implementation of integrated property development projects, while minimising capital outlay for the acquisition of land banks.
Capital World is developing Capital 21 mall, which it says will be Johor Bahru's largest shopping mall - as well as a hotel and serviced suites, and serviced apartments.
Capital World executive director and chief executive officer Siow Chien Fu said, “We are delighted to have PRG as an investor and strategic partner who believes in our vision.
"An endorsement from an industry player shortly after the completion and opening of Capital City Mall marks a significant milestone for us. The new financing will be used to fund existing development as well as expedite the launch of new pipeline development projects,” Siow added.