
LB Aluminium Bhd announced in a filing with Bursa Malaysia that its 51%-owned subsidiary Citajaya Kuasa Sdn Bhd has subscribed for two million new shares, representing an 80% stake in Contras Build Sdn Bhd for RM2 million. The remaining 49% of Citajaya is held by Datuk Seri Gan Yu Chai.
The company announced in January that it would diversify into property development in a bid to increase its income.
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The LB Aluminium Group has been delivering world-class products and services in the aluminium industry since its inception in 1985. Their key expertise is in the manufacturing, marketing and trading of aluminium extrusions, sheets and coils, and ceiling metal tee products
Meanwhile, the remaining 20% of Contras is held by three different individual owners.
Following completion of the share subscription, Contras is now an 80%-owned subsidiary of Citajaya and a sub-subsidiary of LB Aluminium Bhd. Contras’ key business sector is property development and has an issued share capital of RM2.5 million.
LB Aluminium’s share price was down 44 sen today, with a market capitalisation of RM109.33 million. LBA derives 75% of its revenue from domestic sales, while the remaining 25% comes from exports. The company is positive about the long-term prospect for property development, given the positive outlook of the Malaysian economy. Since the company is already a supplier of aluminium products to building and construction sector, the expansion will only support the business further.
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