KUALA LUMPUR: Priceworth International Bhd
(PWI) and its wholly-owned subsidiary Maxland Energy Sdn Bhd will purchase the entire 100% equity interest in forest and plantations maintenance works company Meluz Azim Sdn Bhd for RM46.67mil.
In a filing with Bursa Malaysia, PWI said Melur Azim and and its subsidiaries are the owners of seven parcels of lands in Seguntor in Sandakan, Sabah, with a total area of 96.01 acres.
The vendors are Chu Vui Khat and Hayati Laada, who are disposing of their respective 50% stakes in the company.
PWI said the acquisition will not result in any cash outflow from the group as the purchase price will be satisfied via a settlement agreement with logs suppliers for monies owed to the group.
The logs suppliers will settle its RM54.58mil sum owing to PWI by causing the transfer of 100,000 Melur Azim shares to PWI for a total consideration of RM46.67mil, while the remaining balance of RM7.91mil owed will be waived.
According to Priceworth, the properties owned by Melur Azim are located next to PWI's existing timber complex and shipyard, making it suitable for the expansion of the group's existing businesses and shipyard operations.
"The properties are located at the special industrial area as per the Jabatan Perancang Bandar dan Desa Negeri Sabah and within an established Palm Oil Industrial Cluster Sandakan area with complete facilities and infrastructure.
"The lands form a reasonably large size of land mass enabling industrial development to be carried out on an economic scale," it added.
Based on the latest audited financial statements for the financial year ended March 31, 2023, Melur Azim has fixed assets of RM12.93mil and current assets of RM16.311.86.
Its current liabilities stand at RM18.42mil while shareholder's funds are in deficit of RM5.47mil.
For the financial year, the company posted a loss before tax of RM349,242.86.
