KUALA LUMPUR: Coastal Contracts Bhd has purchased an 82 per cent share in owner of a resort project in Pulau Mabul, Sabah, Jewel of Mabul Development Sdn Bhd (JOMD), for RM19.89 million.
The company said the move is a component of its expansion strategy, aiming to broaden its revenue sources by exploring and participating in promising new ventures.
In a statement to Bursa Malaysia, its subsidiary, Coastal Hospitality Holdings Sdn Bhd (CHH), has finalised a share sale agreement and a shareholders agreement to procure 100,000 shares in JOMD from Richard Christopher Barnes.
CHH will additionally subscribe to 1.72 million ordinary shares in JOMD.
After finalising the acquisition, JOMD will issue new shares, and CHH will purchase these new shares for a subscription cost of RM16.02 million.
JOMD is presently involved in constructing a resort project showcasing overwater bungalows on Pulau Mabul in the Semporna District of Sabah.
This development is separated into Phase 1 and Phase 2.
Coastal Contracts said the acquisition presents the group with a chance to enter the tourism sector, anticipated to return to its pre-pandemic levels by 2024.
"The diversification is also in line with its climate transition roadmap which would substantially reduce its carbon footprint in its journey to Net Zero by 2050," it said.
Coastal Contracts closed unchanged at RM1.62 a share yesterday.