Chuan Hup Holdings C33 , on May 8, announced that it has completed its acquisition of 51% of the total shares in Homestead Capital.
Homestead Capital is a newly-incorporated investment holding company that holds all the paid-up shares in Homestead KS. Homestead KS is a company that holds, leases, operates and manages properties for the student accommodation business.
Under the terms of the acquisition, Chuan Hup acquired 408 shares, or 7.7% of the total shares in Homestead Properties, Homestead Capital’s sole shareholder, for $800,000. It also subscribed to 2,295 shares, or 43.3% of the total shares in Homestead Capital, for $4.5 million.
According to Chuan Hup, the transaction will enable the company to expand its property-related business and capture the opportunities in the rising demand for student accommodation and leasing. The transaction is considered to be in the ordinary course of the company’s business.
The net tangible asset (NTA) of Homestead KS is $388,528, based on the audited financial statements as at Dec 31, 2022.
The sum was paid in cash and is funded through internal resources. It is not expected to have any material impact on the company’s NTA per share and earnings per share (EPS) for the FY2023 ending June 30.
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As at 11.22am, shares in Chuan Hup are trading flat at 20 cents.
