KUALA LUMPUR (Oct 19): Global Oriental Bhd, whose revenue is mainly derived from property development, is acquiring a 55% stake in a car park management firm to expand its earnings base.

The group is buying the stake in Edisijuta Parking Sdn Bhd (EPSB) for RM27.5 million cash from Cahaya Impian Sdn Bhd. Cahaya Impian currently holds a 70% equity interest in EPSB, while the remaining 30% is owned by Edisijuta Sdn Bhd.

The purchase consideration comes with a price-earnings multiple of 9.9 times, based on the EPSB’s profit after tax of RM5.05 million recorded for the financial year ended Dec 31, 2022, according to Global Oriental’s bourse filing.

The group said it believes the acquisition will potentially augur well for its prospects and may contribute positively to its financial performance by contributing a recurring revenue stream.

Presently, Global Oriental's revenue is mainly derived from its property development segment, which contributed RM373.79 million or 95.2% of the group's total revenue of RM392.63 for the financial year ended March 31, 2023.

The acquisition will be funded by internally-generated funds and it is expected to be completed in the fourth quarter of 2023.

The share price of Global Oriental closed up half a sen or 2.22% at 23 sen, bringing the group a market capitalisation of RM105 million.