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Country Heights Holdings, plans to acquire a construction firm in order to enhance its property development business, according to its Founder Tan Sri Lee Kim Yew.

“To develop your business, I find that listed (status) is still very useful, so if there is an opportunity and Country Heights is capable, (we) should start (going) into other businesses, even using the listing status,” he told the media after the company’s annual general meeting on Friday.

The acquisition will likely be carried out via assets and landbank, instead of cold cash, given the current financial position of Country Heights, he explained. Nevertheless, the company is now capable of paying its stockholders’ dividends.

“With Country Heights’ financials getting healthier, I think (the company) should consider paying dividend.”

But when queried on how soon the company will distribute them to its stockholders, Lee responded: “I cannot answer that, I think the board has to make decision, of course I’m the major shareholder, I supported the motion.” Lee and his family collectively own over 60 percent of Country Heights.

Notably, the firm has not given any dividends since 1997, when it accumulated a large amount of debt due to the Asian Financial Crisis.

Its stockholders have been clamouring for their dividends in the past few years, citing the company’s better financial position. In Q4 2014, Country Height’s net profit rose to RM19.22 million from RM18.93 million a year ago.

However, Lee explained that they need to save cash for upcoming projects, particularly the Mines Wellness City.

Moreover, the company still has significant liabilities at present, added Lee’s daughter Diani Lee Cheng Ni, who is also the General Manager for branding & communications. As of December 2013, Country Heights’ total borrowings was at RM234 million, while total assets were RM780 million before the revaluation of its ~6,000acre landbank.

Meanwhile, Country Heights plans to open its Mines Wellness Shopping later this year. It will also roll out four projects in the next 12 months with a combined gross development value of RM938 million.

*source from PropertyGuru Malaysia on 23 June 2014.