KUALA LUMPUR (April 18): ML Global Bhd, which is planning to diversify into property development and investment, says it is in the midst of exploratory talks to buy more lands and to undertake more joint ventures to develop small to medium scale projects.

In a stock exchange filing today, it said it is "exploring, discussing and negotiating with other parties" for that purpose, but did not reveal more.

"In view of this, the board expects ML GLobal's existing business activities to be diversified to include property development and property investment.

"Barring unforeseen circumstances, the board anticipates the net profit from the new businesses may contribute over 25% of the total net profits of ML Global in future financial years," it said.

It intends to seek its shareholders' approval for the proposed diversification at an extraordinary general meeting to be convened.

The announcement today came after the group said on March 23 that it would partner landowner Alaf Cahaya Development Sdn Bhd to develop a leasehold plot in Seri Kembangan, Selangor, into a mixed project with an estimated gross development value of RM270 million.

The project comprises 74 commercial units and 398 service apartments, to be developed over five years on the 18,965.72-sq-metre plot.

“The proposed diversification is expected to contribute positively to MGB Group’s future earnings and improve its financial position, which will enhance shareholders’ value and future prospects of ML Global Group,” it added today.

ML Global’s shares closed up 4 sen or 3.67% higher at RM1.13 today, for a market capitalisation of RM414.2 million.