Kanger acquires RM143m hillside property with funding from rights issue

KANGER International Bhd through its wholly owned subsidiary, Kanger Ventures Sdn Bhd, has proposed to acquire 126 units of service apartments developed by Aset Kayamas Sdn Bhd in Genting Highlands for RM142.9 mil.

The apartment units are part of the Antara @ Genting Highlands project which comprises four blocks of 44- to 46-storey freehold serviced apartments totalling 1,460 units.

Built on 5.345 acres of freehold land, Antara @ Genting Highlands is strategically located about 850 meters away from SkyAvenue, a shopping mall in Genting Highlands.

Antara @ Genting Highlands

Construction of Antara @ Genting Highlands is currently 10% completed and the entire development is expected to be completed within 54 months.

“By expanding our property investment portfolio to Genting Highlands, this would put the group in a strong position to capitalise on the future growth prospects and increase in visitor traffic there,” Kanger’s executive director Steven Kuah Choon Ching pointed out.

“Kanger intends to convert the service apartments into a comprehensive wellness centre facility offering stem cell treatments that enhance people’s health and well-being. “

The company said the purchase consideration will be fully or partially funded by the its rights issue with warrants exercise.

The exercise will involve the issuance of 2.86 billion rights shares on the basis of one rights share for every one share held on an entitlement date to be determined later.

Additionally, up to 2.86 billion Warrants B will be issued on the basis of one Warrant B for every one rights shares subscribed for by shareholders.

Based on an indicative issue price of 10 sen per rights share, Kanger expects the group to raise up to RM286.2 mil.

Elsewhere, the group also announced the proposed diversification of its principal activities to include construction business, notably building construction, civil engineering and project management contracts as main contractor or subcontractor.

The proposed purchase of service apartment units in Genting Highlands marks Kanger’s  first property investment in Malaysia, complementing the group’s two other investment properties in China.

On March 9 last year, Kanger entered into 10-year lease agreements for two commercial buildings located in Ganzhou City in the Jiangxi Province.

Kanger closed 0.5 sen or 4.35 sen lower today at 11 sen with 89.16 million shares traded, thus valuing the company at RM254 mil. – Feb 24, 2021

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