Centurion Corporation OU8 has announced that its wholly-owned subsidiary Centurion Dormitories has entered into a share sale agreement to acquire the remaining 51% equity interest in the share capital of Oriental Amber for a purchase consideration of RM2.6 million ($742,000).
Oriental Amber is a company incorporated in Malaysia principally engaged in the business of property investment and provision of dormitory accommodation, management and services. It owns 7.6 acres of freehold land in Johor Bahru, Malaysia, which was originally zoned for agricultural use and now converted and zoned for industrial use.
The land has been independently valued at RM18.5 million, and was accounted for in negotiations of the purchase consideration.
Centurion says the acquisition is in line with its plan to develop the land into a workers’ accommodation of approximately 7,000 beds.
The acquisition is scheduled to be completed on Dec 21, following which Oriental Amber will become an indirect 100%-owned subsidiary of Centurion.
Shares in Centurion closed 0.5 cents lower or 1.24% down at 40 cents on Dec 15.
