Robert Kuok’s firm to buy armed forces fund’s stake in Hillcrest

Reuters pic

KUALA LUMPUR: Robert Kuok-controlled PPB Group Bhd has agreed to acquire the Armed Forces Fund Board’s (LTAT) entire 16.8% stake in property developer Hillcrest Gardens Sdn Bhd for RM59 million cash.

The Star reported that the purchase price was a 76% premium over Hillcrest’s audited consolidated net assets as at Dec 31, 2017.

LTAT’s original cost of investment in the company was RM1.2 million in 1976.

PPB Group, in a filing with Bursa Malaysia, said the premium was deemed “reasonable” after considering the location, as well as the prospects and development potential of the parcels of land owned by Hillcrest.

According to the report in The Star, Hillcrest owns 147.78 acres of freehold land in Taman Seri Gombak and Taman Puchong Utama, both in Selangor.

PPB Group said the proposed acquisition of the shares from LTAT would enable the company to expand its investments in property-based activities and continue diversifying its source of earnings.

PPB Group Berhad is an investment holding and property investment company listed on the main board of Bursa Malaysia. Incorporated in Malaysia in 1968, the PPB Group today is a conglomerate with total assets and market capitalisation of RM22.9 billion and RM20.6 billion respectively as at Dec 31, 2017.