GSB scaling greater heights

GSB Group Bhd, a pioneer in the optical disc industry, will add over RM1.7 billion worth of property projects to its portfolio upon acquiring four Kuala Lumpur and Penang-based companies.

The group has an ongoing mixed development known as “g Residence” in Plentong, Johor Baru. It offers a retail podium and two 25-storey blocks of serviced apartments that are linked via a Sky Bridge Garden.

GSB is investing RM714 million to acquire the four companies which will give the group direct access to ongoing property development projects like Bloomsvale at Jalan Puchong/Jalan Klang Lama, Kaleidoscope in Setiawangsa, and Straits Residence in Seri Tanjung Pinang with total remaining gross development value of RM1.74 billion.

The group has entered into three conditional share sale agreements to acquire Aeon Frontier Sdn Bhd (AFSB), Kerjaya Prospek Property Sdn Bhd (KPP) and Kerjaya Hotel Sdn Bhd (KHSB) for a purchase consideration of RM672 million.

It has also entered a conditional share subscription agreement for the proposed subscription of 99.4 per cent equity interest in Desanda Property Sdn Bhd (DPSB) in exchange for 251.37 million new GSB shares.

AFSB, KPP, KHSB and DPSB are owned by the Tee family, who in turn holds a 40.8 per cent indirect equity interest in GSB via Javawana Sdn Bhd.

The Tee family bought into GSB in May last year through private placement and substantial shareholders for about RM25.3 million. They also control construction firm Kerjaya Prospek Bhd with a 70.26 per cent stake.

AFSB, KPP and DPSB are owned by Datuk Tee Eng Ho, who is Kerjaya Prospek executive chairman, and his brother Tee Eng Seng, GSB’s executive director.

KHSB is owned by GSB executive chairman Datin Toh Siew Chuon, Eng Ho and Eng Seng. Toh is Eng Ho’s spouse.

GSB said the move to acquire the four property companies is to deliver sustainable growth and profitability.

“GSB will significantly scale up its property development business once the acquisitions are completed. It will also increase the landbank size and geographical reach to Melaka and other areas of Selangor such as Gombak,” it said in a statement last week.

The group added that the acquisition will enable it to have access to investment in the four-star 306 room Swiss Garden Hotel in Melaka as well as the new hotel, offices and mall in future.

Source: NST