Minox seeks Bursa listing for new shares in RM15m Johor developer buy
Minox International Group has applied to Bursa Malaysia for the listing of new shares to fund its RM15 million acquisition of Johor residential developer Pembinaan Dragon Point. The purchase will be paid partly in cash and partly via new shares, as Minox diversifies into property development.
PETALING JAYA (Oct 16): Minox International Group Bhd has submitted an application to Bursa Malaysia Securities Bhd for the listing and quotation of new shares to be issued under its proposed RM15 million acquisition of Johor residential developer Pembinaan Dragon Point Sdn Bhd (PDP).
In a Bursa filing on Thursday (Oct 15), Minox said its adviser, UOB Kay Hian (M) Sdn Bhd, submitted the application on the same day. The acquisition, first announced on Aug 21, forms part of the stainless steel valves, tubes and fittings distributor’s proposed diversification into property development.
Under the conditional sale and purchase agreement, Minox agreed to acquire all 300,000 shares in PDP from Koh Kun Chuan and Jason Koh Jian Hui. The purchase consideration comprises RM6.72 million in cash and RM8.28 million through the issuance of 36 million new Minox shares at 23 sen apiece.
According to the August announcement, PDP had two ongoing residential projects in Tangkak, Johor, with a combined gross development value (GDV) of approximately RM14.8 million. These comprised 16 units on Lot 1451 and 21 units on Lot 12149. Both projects were 75% completed as at Aug 3, with completion then expected in the third quarter of 2026.
The same announcement identified five future projects with an estimated combined GDV of RM55.2 million, secured through joint venture arrangements. These were expected to commence progressively between the first quarter of 2027 and the second quarter of 2029. As at Aug 3, the projects were at various stages of obtaining development approvals. PDP had also completed three residential projects in Muar and Tangkak with a combined GDV of approximately RM19 million.
The vendors have provided a profit guarantee of at least RM2.5 million in profit after tax for each of the financial years ending Dec 31, 2027, 2028 and 2029, totalling RM7.5 million. Shortfalls for the first two years are subject to final cumulative reconciliation at the end of the guarantee period. The vendors’ guarantee obligations would also be deemed fulfilled if cumulative profit after tax reaches at least RM7.5 million at the end of any year during that period.
Minox said the proposed acquisition would broaden its earnings base beyond its distribution business, which serves customers primarily in the food and beverage, pharmaceutical and semiconductor industries. The acquisition and diversification are interconditional. In August, Minox said the proposals required, among other things, Bursa Securities’ approval for the listing and quotation of the consideration shares and shareholders’ approval for the diversification.
The acquisition itself does not require shareholder approval. The consideration shares would be issued under a general mandate approved by shareholders on June 5. In its August announcement, Minox targeted completion of the proposals in the fourth quarter of 2026, subject to fulfilment of the agreement’s conditions.
