Some of the products of the ceramics maker

PETALING JAYA: Ceramic products company Goh Ban Huat Bhd (GBH) has proposed to acquire 29 units of 1½-storey semi-detached factory, 15 parcels of vacant industrial land, a parcel of vacant commercial land and vacant hostel land in Pontian, Johor for RM143mil cash.

In a filing with Bursa Malaysia, GBH said the proposed acquisitions was in line with the company’s proposed plans to diversify into the construction and property development business.

Under the multiple proposals, its unit Paragon Bizhub Sdn Bhd (PBSB) had inked a conditional sale and purchase agreement (S&P) with Pekan Nenas Industries Sdn Bhd (PNISB) for the proposed acquisition of 29 units of unsold semi-detached factory that has a built-up area of 340,542 sq ft, seven parcels of vacant industrial land and a parcel of vacant commercial land with an area of about 27 acres in Pontian, Johor for RM117.6mil.

GBH said under the multiple proposals, it inked a second conditional S&P with Pekan Nenas Development Sdn Bhd (PNDSB) which entailed a conditional S&P to buy two parcels of vacant industrial land with an area of approximately 4.95 acres in Pontian for RM8.1mil

The major shareholders of the PNISB, PNDSB and JDSB, which are involved in the property development and property investment business include Datuk Tan Eng Boon, Datuk Seri Edwin Tan, M Sani Mohd Taib and See Choon Gek.

On the proposed diversification, GBH explained that the group was presently involved in the rental of properties, investment holding and trading of ceramic ware and tableware.

“However, due to the limited revenue growth in the ceramic ware and tableware trading business for past financial years, Paragon Adventure Sdn Bhd, undertook a review and evaluation of its operations to develop and implement longer term strategies to improve GBH’s performance,” GBH said.

Recall that Paragon Adventure emerged as GBH’s controlling shareholder on Sept 27 in a takeover offer after it forked out RM145.7mil or RM1.40 per share for a 51% stake in the company. GBH’s major shareholder Tan Sri Robert Tan Hua Choon had disposed of the stake in an off-market transaction.

Then, by the end of October, the minority shareholders of GBH were advised to accept Paragon Adventure’s offer to acquire all the remaining shares for RM1.40 per share.

GBH shares closed unchanged at RM1.50 yesterday. At this price, the company is worth about RM280mil.