EcoFirst to acquire 70 per cent stake in Geo Valley

KUCHING: EcoFirst Consolidated Bhd is proposing to team up with Penang-based property development Lone Pine group to develop a RM1.25 billion gross development value (GDV) mixed residential and commercial project in Paya Terubong.

EcoFirst on Thursday proposed to acquire a 70 percent stake in a member of the Lone Pine group, Geo Valley Sdn Bhd, for RM44 million cash.

EcoFirst will first subscribe for a 20 percent stake in Geo Valley for RM13,333.46. It will then acquire another 3.3 million shares for RM44 million from Geo Valley shareholders.

Geo Valley is planning to develop three blocks of medium cost apartment with one block of controlled price apartment and commercial shop lots on 21.73 acres of land strategically located about 7.8 kilometres south of Penang’s Georgetown city centre in Paya Terubong.

“We are excited to be teaming up with the Lone Pine group, a partner which is well-established in Penang and has a number of completed projects under its belt,” said Datuk Tiong Kwing Hee, group chief executive officer in a statement.

“This is part of EcoFirst’s long-term growth strategy, to partner with reputable and wellknown brands and combine our strengths for a better competitive edge.”

The Lone Pine group developed the award- winning seafront luxury condominium One Tanjong in Tanjung Bungah, Penang, as well as the Pine Residence and Pine Valley in Paya Terubong.

The proposed acquisition is expected to be completed in the fourth quarter of FYE 31 May 2019 and is not expected to have any material effect on EcoFirst’s earnings and earnings per share ( EPS) for the financial year ending May 31, 2019.