Atis to raise stake in Mutiara to 30.28%

KUALA LUMPUR: Atis Corporation Bhd is raising its stake in property developer Mutiara Goodyear Development Bhd to 30.28% with the proposed acquisition of an additional 9.26% at 97 sen per share for a total of RM20.74 million cash, in a related-party transaction.

Atis said yesterday it had entered into an agreement with Laman Arif Sdn Bhd and Lim Beng Guan to acquire their 9.26% stake comprising 21.38 million shares in Mutiara.

“The proposed acquisition is in tandem with our corporate vision, as we view the investment in Mutiara as strategic to our core business.

“Atis would be able to synergise the business of both companies, and enable us to tap into Mutiara’s business presence, network and expertise to derive business opportunities of providing electrical and engineering products required by future development projects,” said Atis.

Lim is a non-independent non-executive director and shareholder of Atis. The transaction is deemend a related-party transaction as Lim is also the executive director of Mutiara and a major shareholder by virtue of his direct interest in the company and indirect interest via Laman Ariff.

Prior to the disposal, Lim owns 6.28 million Mutiara shares or 2.72% and Laman Arif 15.1 million shares or 6.54%.

Cumulatively, the two vendors’ total cost of investment in the 21.38 million Mutiara shares from October 2007 to October 2008 was about RM21.27 million or 99.46 sen per Mutiara share.

Mutiara yesterday closed two sen lower at 83 sen, with 263,000 shares done.

Recently, Atis proposed to acquire an 8.66% stake comprising 20 million shares in Mutiara from WEIDA (M) BHD, also at 97 sen per share for a total of RM19.4 million, bringing its stake in the property developer to 21.02%.

Weida, which holds a 17% stake or 39.09 million shares in Mutiara, had then said it would also seek a general mandate from its shareholders to sell its remaining holding of 19.09 million Mutiara shares (8.27% stake), either via the open market or placements for no lower than 97 sen per share.

The latest acquisition would push up Atis’ net asset per share to RM1.60 from RM1.45, and increase its net borrowings to RM74.65 million from RM34.5 million, while its net gearing ratio would rise to 0.29 times from 0.15 times based on its consolidated results as of March 31, 2009.

Mutiara Group develops residential and commercial properties in Klang Valley and Penang and has strategic landbank in these two areas.

By The EDGE Malaysia (by Tony C H Goh)