Atta Global in Rm28mil Penang land buy

PETALING JAYA: Atta Global Group Bhd’s wholly-owned subsidiary, Park Avenue Construction Sdn Bhd, has entered into three separate sales and purchase agreements to acquire three adjoining lots of land amounting to 260,988 sq ft in Barat Daya, Penang, for Rm28mil.

In a filing with Bursa Malaysia, the company said the purchase consideration will be satisfied via the issuance of 114.29 million new shares in Atta at an issue price of 24.5 sen apiece.

The group said it would issue 69.39 million and 44.9 million shares to the vendors – Limbo Ngan Maung Sdn Bhd and Utopia Span Sdn Bhd – respectively.

According to the statement, the proposed acquisition is part of Atta Group’s expansion plan to increase its land bank at strategic locations with growth potential.

The group said it aims to scale up its property development segment portfolio to secure an additional revenue stream in light of falling contribution from its manufacturing segment.

“The property development segment has shown a revenue uptrend in the past three financial years, proving its viability,” it said.