KSL Holdings Bhd has proposed to acquire two parcels of development freehold land measuring 92.2 ha in Johor Baru, Johor from Ho Hup Construction Co Bhd for RM97mil cash.

''The land to be acquired is ready for development since it has been sub-divided and the layout and building plans have already been approved,'' KSL told the KLSE.

KSL said the land formed part of Bandar Nusajaya in Johor, and was situated within the vicinity of its current ongoing project.

The acquisition, to be partly financed by bank borrowings and internal generated funds, is to be completed by the 1st quarter of 2004.

According to KSL, the deal is not expected to have any material impact on the KSL earnings for the financial year ending Dec 31 this year. The acquisition is expected to contribute positively to the group's medium and long-term earnings.

Ho Hup said in a separate statement that it would use the proceeds from the disposal to repay borrowings and for working capital purposes.

''The proposed disposal would allow the group to redeploy resources, which would otherwise be tied down to the project and thus improving cash flow of the group,'' Ho Hup said.

Source : The Star  23/4/2003