Ho Hup wanted to sell the land to Permata Juang (M) Sdn Bhd, a unit of Magna Prima Bhd, in a related party transaction for RM19.4 million.
Its deputy executive chairman Datuk Lye Ek Seang is also a director of Magna, while its current managing director Lim Ching Choy was a former executive director in Magna up to May 14.
The freehold land in Bandar Bukit Jalil cost Ho Hup RM11.82 million, and a sale would have brought in a gain of RM7.58 million.
Ho Hup, bleeding red ink since 2006, had proposed the sale to help pare down RM104.52 million debts.
"We withdrew (the resolution) because we did not have enough shareholders' support. We need time to pass (the resolution). We will look for options ... sell the land or find a joint-venture partner to develop the land," Lim said after Ho Hup's extraordinary general meeting in Petaling Jaya yesterday.
Shareholders, however, approved another resolution to sell 2.2ha of land in Bukit Jalil to Santari Sdn Bhd for RM9.8 million.
Lim also said that in the next six months, the company expects to generate revenue by asset sales as well as developing the remaining 24ha of land it still has in Bukit Jalil.
"This 24ha land is earmarked for a mixed development, comprising shop apartments, lifestyle piazza and office blocks. We expect to launch the development by next year," he said.
Lim declined to disclose the gross development value of the project, but it was learnt that it is valued at RM1.6 billion.
Elsewhere, Ho Hup is also looking to build some 20 units of semi-detached houses in Bukit Jalil, valued at RM30 million. The project is expected to be launched in September this year.
"We are also active in Madagascar, whereby we have got back our machinery, valued at RM21 million. We are now pursuing machinery rental to get income from there.
"We have started negotiations with interested parties. Once contracts are finalise, we will make an announcement," he said.
Moving forward, he said Ho Hup will focus on its core businesses of construction, property and trading, including the rental business in Madagascar.
He said the company expects its property business to contribute between 70 per cent and 80 per cent to the group's revenue.
By Business Times (by Kamarul Yunus)
The freehold land in Bandar Bukit Jalil cost Ho Hup RM11.82 million, and a sale would have brought in a gain of RM7.58 million.
Ho Hup, bleeding red ink since 2006, had proposed the sale to help pare down RM104.52 million debts.
"We withdrew (the resolution) because we did not have enough shareholders' support. We need time to pass (the resolution). We will look for options ... sell the land or find a joint-venture partner to develop the land," Lim said after Ho Hup's extraordinary general meeting in Petaling Jaya yesterday.
Shareholders, however, approved another resolution to sell 2.2ha of land in Bukit Jalil to Santari Sdn Bhd for RM9.8 million.
Lim also said that in the next six months, the company expects to generate revenue by asset sales as well as developing the remaining 24ha of land it still has in Bukit Jalil.
"This 24ha land is earmarked for a mixed development, comprising shop apartments, lifestyle piazza and office blocks. We expect to launch the development by next year," he said.
Lim declined to disclose the gross development value of the project, but it was learnt that it is valued at RM1.6 billion.
Elsewhere, Ho Hup is also looking to build some 20 units of semi-detached houses in Bukit Jalil, valued at RM30 million. The project is expected to be launched in September this year.
"We are also active in Madagascar, whereby we have got back our machinery, valued at RM21 million. We are now pursuing machinery rental to get income from there.
"We have started negotiations with interested parties. Once contracts are finalise, we will make an announcement," he said.
Moving forward, he said Ho Hup will focus on its core businesses of construction, property and trading, including the rental business in Madagascar.
He said the company expects its property business to contribute between 70 per cent and 80 per cent to the group's revenue.
By Business Times (by Kamarul Yunus)
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