The group told the stock exchange today that it has inked a non-binding memorandum of understanding (MoU) with Capital World, which is listed on the Singapore Exchange Securities Trading Limited.
Capital World’s investment in Malaysia includes a 4 million sq ft integrated development comprising a shopping mall, hotel, serviced suites and serviced apartments known as Capital City in Johor Bahru.
Under the MoU, PRG will invest in Capital World by way of capital injection in the form of new ordinary shares subscription.
“The proposed investment is part of PRG’s overall strategy to continue building up our property development and construction division in becoming one of the significant property players in Malaysia. We realise that there is tremendous synergy between both groups and we look forward to growing hand in hand with Capital World,” said PRG group managing director Datuk Lua Choon Hann.
“Immediately, we can collaborate by introducing the medical and wellness elements in Project Capital City and future development projects which will enhance the appeal of Capital World’s product offering. We believe that Capital World’s niche business model of identifying joint venture opportunities in strategic locations to offer unique and innovative products to the market will allow us to stand out from stiff competition,” he added.
The parties are expected to negotiate and execute the subscription agreement within two months from the date of the MoU.
At 2.03pm, the stock remained unchanged at 77 sen with 13,000 shares done.
Source: The Sun Daily