Ewein Bhd’s unit Ewein Zenith (EZ) Sdn Bhd has entered into a Memorandum of Agreement (MOA) with Consortium Zenith BUCG Sdn Bhd (CZBUCG) to grant EZ the right to purchase three land parcels totalling about 20.23 hectares in Bandar Tanjong Pinang, Penang for RM2.83 billion.
EZ, which is involved in property development, construction and property investment, is a 60%-owned subsidiary of Ewein, with the remaining 40% of the issued and paid-up shares in EZ held by CZBUCG.
EZ is expected to develop a project dubbed “Wellness City of Dreams”, comprising the Wellness Resort, wellness apartments, resort, retirement and healthcare wellness residential suites, serviced apartments with wellness facilities, SOHO and ambulatory services, on the land.
“EZ and CZBUCG have agreed for the said land to be further divided into 10 parcels of land and both companies will enter into a separate sale and purchase agreement for each parcel,” Ewein said in a filing to Bursa Malaysia.
Ewein is also expected to hold an Extraordinary General Meeting within 12 months from the date to obtain shareholders’ approval of the proposed acquisition, which will be funded entirely by internally generated funds.
Ewein also noted that the proposal is in line with the group’s strategy to increase its land bank in order to expand the group’s revenue base particularly in the property development division.