KUALA LUMPUR: Glove maker Careplus Group Bhd has entered into a deal to acquire a 90% stake in a hotel in Senawang, Negeri Sembilan.
Careplus is planning to convert the property into a workers' hostel.
"The Proposed Acquisition is part of the Group’s plan to consolidate the workers’ hostels into a central location to enable efficient management and ease of administrative purposes," it said in a filing with Bursa Malaysia today.
Careplus, on Wednesday, entered into a conditional share acquisition agreement to buy Centro Heights Sdn Bhd from its three individual owners for a total of RM3.8mil.
Careplus will take a 90% stake in Centro, while the remaining 10% belongs to Tang Kin San, who will spearhead the management of the hostel.
Careplus has also agreed to grant Tang the option to purchase up to 20% of Centro.
Centro Heights is the owner of the One Garden hotel in Senawang, as well as a double story shop office.
Careplus plans to convert both the hotel and the shoplot to be used as workers’ hostels with permission for a minimum occupancy of 150 workers.