Lien Hoe buys 13m Perduren shares for RM11.7m

KUALA LUMPUR: Lien Hoe Corporation Bhd has acquired an additional 13 million shares in Perduren (M) Bhd for RM11.7 million or 90 sen each.

Lien Hoe said yesterday the acquisition raised its stake in Perduren to 20.56% or 28 million shares, making the latter an associated company. This enabled Lien Hoe to equity account the financial results of Perduren in its books.

Lien Hoe said the accumulated cost and book value of its investment in Perduren amounted to RM26.5 million which represented 14.51% of the company’s latest audited consolidated net assets as at Dec 31, 2006.

“The market value of these Perduren shares based on the last traded market price of 78 sen on Oct 22, 2007 is RM21.7 million,” it said. Lien Hoe had emerged as a substantial shareholder in Perduren in August 2007. It said the decision to invest in Perduren was based on the attractive valuation of the shares.

It added Perduren was expected to see further earnings growth from its intended venture into property development, where it had strategically located assets that will provide a steady stream of recurring income.

By The EDGE