KUALA LUMPUR (Nov 1): Caely Holdings Bhd has proposed to acquire a property development and construction company that owns 7.97 hectares of land in Bentong, Pahang, that is earmarked for a mixed commercial and residential development project with an estimated gross development value of RM233.79 million.

Caely said it has entered into an agreement with Harvest Miracle Capital Bhd (formerly known as Vortex Consolidated Bhd) to acquire 100,000 shares or a 3.4% stake in Kepayang Heights Sdn Bhd (KHSB) for RM17 million.

In addition, Caely has also agreed to subscribe for 100 million shares in KHSB, representing 97.14% of the enlarged issued capital in the company, for RM1.5 million.  

Upon completion of the proposals, KHSB will become a 97.24% owned subsidiary of Caely, the lingerie manufacturer said in a filing with Bursa Malaysia.

“The proposals are in line with Caely group’s objective to expand its property development and construction segment via acquisitions of land banks for potential development in strategic locations with high development value,” added Caely.

The group said the market value of the land was RM18.5 million, based on a land valuation conducted by an independent valuer.

The property development activities on the land are expected to commence in the first quarter of 2023.

The purchase of KHSB shares and share subscription will be satisfied through a combination of internally-generated funds and bank borrowings, said Caely.

The group expects to complete the proposals by the fourth quarter of 2022.

Since February, Caely has been embroiled in a legal case of alleged misappropriation of funds which involves Caely’s founder and former executive director Datin Fong Nyok Yoon, her husband Datuk Alan Chuah Chin Lai and 10 other former directors. Fong and Chuah are alleged to have misappropriated RM30.55 million from Caely (M) Sdn Bhd (CMSB) through 10 questionable related-party transactions.

The Malaysian Anti-Corruption Commission’s investigation is still ongoing, according to Caely’s executive director Francis Leong Seng Wui last month, who added that MACC’s order to freeze the group’s bank accounts has remained in effect since April.

The group’s current directors told a press conference on Oct 21 that the investigation, freezing of bank accounts, as well ongoing lawsuits, would not jeopardise Caely’s operations and future developments.

Caely’s share fell 1.72% to close at 28 sen on Tuesday (Nov 1), giving the group a market capitalisation of RM73.60 million.

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