Grand-Flo diversifies into construction

PETALING JAYA: Grand-Flo Bhd, which is acquiring the remaining 49.9% stake in property firm Innoceria Sdn Bhd for RM21.9 million, is looking to diversify into the construction business.

The group said in a filing with the stock exchange that it had on April 10 entered into a conditional share sale agreement with Chuah Chew Hai for the acquisition. Chuah is the director and shareholder of Innoceria and Grand-Flo, hence it is deemed a related party transaction.

The purchase consideration will be satisfied in cash via internally generated funds.

Innoceria currently owns the development rights and interests in the Vortex Business Park Project, Penang. Phase 1 of the project was completed in July 2017, while Phase 2 entails the development of semi-detached shop-offices and light industrial factories with an estimated gross development value of RM88.17 million and gross development profit of RM13.67 million to be realised over a development period of two-and-a-half years.

Separately, Grand-Flo, is currently involved in the enterprise data collection and collation system business as well as property development, said its plan to diversify into the construction industry will complement its property development business.

Its wholly owned subsidiary Grandcon Sdn Bhd has been identified to carry out the construction activities and tender for new construction projects in the near term.