Ewein buys 50 acres of land in Penang

Ewein Bhd's 60%-owned subsidiary Ewein Zenith Sdn Bhd (EZ) has been granted the right to acquire three parcels of land at Bandar Tanjong Pinang, Penang for a total of RM2.83 billion.

In a filing today, Ewein said EZ had entered into a Memorandum of Agreement (MOA) with Consortium Zenith BUCG Sdn Bhd (CZBUCG) to grant EZ the right to purchase the land, aggregating approximately 50 acres.

Ewein said the plan was in line with its strategy to increase its land bank and expand its revenue base, particularly in the property development division.

It said the acquisition would be funded entirely by internally-generated funds.

On the prospect of the Malaysian property market, Ewein expected it to be positive, given the expected improvement in the global and Malaysian economy, coupled with the implementation of the Economic Transformation Program and Eleventh Malaysia Plan 2016-2020, as well as various measures proposed under the Budget.

"The Board is optimistic that the Proposal will enhance the prospects of the Development in contributing towards profitability of Ewein," it added.

According to the filing, EZ and CZBUCG agree for the said land to be further divided into 10 parcels of land.

Ewein rose as much as 2 sen or 1.33% to RM1.52 this morning, with 972,900 units traded as at 10.45am. -- theedgemarkets.com

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