UOA in share subscription agreement for land deal

by **Cals** Wed 29 Jan 2014, 08:20

Published: Wednesday January 29, 2014 MYT 12:00:00 AM
Updated: Wednesday January 29, 2014 MYT 7:41:15 AM
UOA in share subscription agreement for land deal
KUALA LUMPUR: UOA Development Bhd has entered into a share subscription agreement with several parties for a land deal in Jalan Klang Lama.
In a filing with Bursa Malaysia yesterday, UOA Development said the agreement withEureka Equity Sdn Bhd, Regenta Development Sdn Bhd, Lau Soon Woh, Mow Chooi Yoon and Kok Koek Hung involved the subscription of three million ordinary shares of RM1 each in Eureka at par by UOA and Regenta.
Eureka has pieces of land measuring about 1.2ha in Jalan Klang Lama valued at RM63.5mil.
The principal activity of Eureka, which is currently dormant, is property development.
Following the share subscription, UOA holds 59.99% stake in Eureka, Lau (10%), Mow (20%), Kok (10%) and Regenta (0.00002%).
UOA said the land waslocated approximately 1km from the federal highway and was near Mid Valley City and has a prominent frontage to Jalan Klang Lama.
The location of the land is also highly accessible.
“The land is ideal for condominium and commercial development.
“The proposed subscription allows the company to strategically expand its landbank in Kuala Lumpur that matches the fast turnaround strategy,” UOA said.
The company said the proposed subscription was expected to contribute positively to the future earnings of UOA following development of the land.
UOA said its management was optimistic about the prospects of the development of the land.
UOA is the developer of Bangsar South, a RM10bil gross development value integrated development on the former Kampung Kerinchi squatter colony.