KUALA LUMPUR: Investment holding company Global Oriental Bhd
(GOB) has proposed to acquire 550,000 ordinary shares or 55 per cent of Edisijuta Parking Sdn Bhd (EPSB) for RM27.5 million cash from Cahaya Impian Sdn Bhd.
In a filing with Bursa Malaysia, the company said the acquisition will enable it to expand its earnings base in the form of a recurrent stable income generated by the car park management and operations business of EPSB.
Presently, GOB's revenue is mainly derived from its property development segment, recording RM373.79 million for the financial year ending March 31, 2023.
Notwithstanding this, Global Oriental's revenue from property development is largely dependent on the sales of units from its respective developments, which depends on several variables.
"By undertaking the proposed acquisition, GOB will obtain a separate and more recurring revenue stream to supplement its property development business,” it said.
For the record, GOB said for the financial year ended Dec 31, 2022, EPSB recorded revenue of RM50.95 million, net profit of RM5.05 million and cash generated from operating activities of RM5.34 million. - Bernama
