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Atta Global to acquire 3 land parcels in Penang for RM28m

Atta Global to acquire 3 land parcels in Penang for RM28m

10 Nov 2022

The proposed purchase will be paid with the issuance of new company ordinary shares

STEEL products manufacturer and trader Atta Global Group Bhd plans to acquire three sea-fronting parcels of land in Batu Maung, Penang, for RM28 million with an eye to scale up its property development segment.

In an exchange filing today, Atta said the proposed purchase will be paid with the issuance of new company ordinary shares.

Its wholly owned subsidiary Park Avenue Construction Sdn Bhd has entered into three separate conditional sale and purchase agreements with Limbo Ngan Batu Maung Sdn Bhd and Utopia Span Sdn Bhd for the three land parcels totalling 260,988 sq ft (24,247.57 sq m). 

The land is situated at the south-eastern portion of Penang Island, which abuts onto the sea (South Channel) in the locality of Batu Maung, providing Atta with the flexibility to undertake a mixed property development project in the future, if it decides to do so, according to the filing. 

To reduce over-relying on the manufacturing segment, the company said the proposed acquisition is part of its expansion plan to increase its landbank at strategic locations with growth potential, to scale up its property development segment portfolio, enhance the segment’s weightage among its existing operating business segment, and securing an additional revenue stream for the future. 

Atta is principally involved in the iron and steel industry in upstream and downstream sectors of the process of shearing, re-shearing, slitting of steel coil, slitted flat bars, steel roofing, wall cladding structural floor decking, manufacturing and marketing of perforated metal, cables support, systems and screen plate, steel furniture and the industrial recycling of scrap metal. 

Its other businesses include the letting of industrial and commercial assets, provision of management consultancy, property development, construction and property investment sector.

The land under consideration is situated about 18km southwest from Komtar in Georgetown, 10km to the south-east of the town centre of Bandar Bayan Baru, 1.8km to the south of Sultan Abdul Halim Muadzam Shah bridge (Second Penang bridge) and 8km east from the Penang International Airport. The immediate neighbourhood is mainly residential in nature with pockets of hilly lands and coastal lands. 

For the financial year ended June 30, 2002 (FY22), Atta posted a net profit of RM800,000 on RM119.78 million in turnover. In the last quarter of FY22, it posted a net loss of RMRM6.16 million, widening about three times from the RM1.9 million net loss in the same preceding quarter. 

The stock closed untraded at 26.5 sen, giving it a market capitalisation of RM66 million.

Source: The Malaysian Reserve