Johor Corporation Berhad (JCorp) through its special purpose company Absolute Ambient Sdn Bhd (AASB) intends to purchase a 49.57% equity stake in Damansara Holdings Bhd (DHB).
Through the purchase of an equity interest in the facilities management and property development firm, it will cover a total of RM78.91 million.
AASB meanwhile has signed a conditional agreement to execute the purchase of 157.82 million shares from DHB's largest shareholder, Seaview Holdings Bhd at 50 sen per share.
CIMB Investment Bank stated that JCorp has made an assessment that the DHB group's business is complementary to the business it is currently undertaking under the real estate and infrastructure segment.
In addition, the implementation of the proposal is also expected to provide an opportunity for JCorp to strengthen and expand its capabilities as well as existing property management operations.
At 4.05pm, DHB's share price declined 5.10% to 46 sen with a market capitalization of RM148.05 million.
