IJM unit to buy 50% stake in Larut Leisure Enterprise

28/06/2007 The Star

PETALING JAYA: IJM Corp Bhd's subsidiary IJM Properties Sdn Bhd (IJMP) agreed to buy a 50% stake in Larut Leisure Enterprise (HK) Ltd.

Larut owns a partially completed commercial cum residential complex in Changchun, Northeast China's Jilin province.

In a statement to Bursa Malaysia, IJM Corp said IJMP had entered into a share sales agreement with Larut Overseas Ventures Sdn Bhd to acquire 1.515 million shares in Larut Leisure.

IJMP would pay HK$1 plus the assumption of RM25.63mil loan from Talam Group to Larut Leisure for the acquisition, it said.

Larut Leisure holds a 60% stake in Jilin Dingtai Enterprise Development Co Ltd, which owns the partially completed Yin Hai Complex.

The statement said the gross sales value of the 35-storey complex was estimated at 745 million yuan (RM340mil).

Larut Leisure is a wholly owned subsidiary of Larut Overseas -- a subsidiary of Talam Corp Bhd.

IJM Corp said the acquisition was not expected to have significant effect on its earnings or net asset per share for the financial year ending March 31, 2008.