Pavillon Holdings to buy 107 lots in City Plaza, JB, and adjoining vacant land for RM52m

SINGAPORE - Mainboard-listed Pavillon Holdings said its subsidiary, Fengchi Real Estate Sdn Bhd, had entered into a conditional sale and purchase agreement on Sept 16, 2017, to acquire a total of 107 lots and adjoining vacant land in City Plaza in Johor Bahru for RM52 million (S$16.7 million).

Pavillon, for formerly known as Thai Village Holdings, said the proposed acquisition was for carrying out property investment activities in Malaysia.

Among others, the proposed purchase is subject to obtaining the approval of Pavillon's board of directors and shareholders, the company said in a pre-market filing on Monday (Sept 18).

Pavillion said it will convene an extraordinary general meeting of its shareholders to obtain approval of the proposed acquisition and for the issuance of 70 million new shares in the company at ten Singapore cents apiece, amounting to S$7 million or about RM21.18 million, as part payment of the purchase price.

A total of RM970,000 has been paid as deposits, with the balance to be paid upon completion of the proposed acquisition, which is Jan 16, 2018.

Assuming the proposed acquisition had been completed on July 1, 2016, the company said its net tangible asset per share would fall to 10.38 cents after the acquisition from 10.62 cents before it, while net loss would widen to S$1.06 million from S$649,000.

Shares of Pavillon, which has been on the Singapore Exchange's watch-list since June 5 this year, last traded at 4.9 cents.