KUALA LUMPUR: O&C Resources Bhd (OCR) has received its shareholders' approval for the company's planned diversification into the property business from manufacturing rubber and baby products.
Its chief financial officer Bernard Tan Ban Tatt said the plan to diversify into property development is part of the company's turnaround plan after suffering from profit losses for several quarters.
Tan said the company is now in full force to begin development on its three property projects in Kuala Lumpur, Pahang and Malacca, with a gross development value of RM784 million.
Just two quarters ago, OCR, or previously known as Takaso Resources Bhd, returned to the black after its first venture into the construction business last year, which at the moment contributes to 20 per cent to the group's revenue.
The company has also received its shareholders' approval for the proposed rights issue of up to 735.07 million irredeemable convertible preference shares to raise funds to fulfil the development cost for the three property development and construction projects.
On January 13, 2015, OCR announced that its wholly-owned Takaso Land Sdn Bhd has bagged a RM37.44 million contract to construct a 21-storey commercial building located in Mukim Batu, Kuala Lumpur.
Tan said the construction works commenced in April 2015 and is expected to be completed in January 2017.