The founders of EXSIM, the Lim brothers, are acquiring a 65.9 per cent stake in Pan Malaysia Holdings Bhd (PM Holdings) for RM36.73 million, or six sen per share, to expand their short-term accommodation business.

The acquisition price of RM36.73 million represents a 45 per cent discount to PM Holdings' closing price of 11 sen on Thursday, valuing the group at RM102.17 million. 

PM Holdings, linked to businessman Tan Sri Khoo Kay Peng, has attracted takeover interest since its divestment of stockbroking and asset management businesses in November 2023, fetching RM90 million collectively. 

The company presently owns the 10-storey Corus Paradise Resort in Port Dickson and its adjacent land, with the hotel holding a book value of RM34.83 million as per last year's annual report. 

According to a spokesperson from EXSIM, the share acquisition in PM Holdings is part of a larger strategy to expand its hospitality business. 

The property developer has been venturing into short-term accommodations in the KLCC area since 2018/2019, the spokesperson said. 

"EXSIM aims to grow its short-term stay business, seeing significant potential in this real estate segment. The group plans to refurbish Corus Paradise Resort later this year and convert its rooms into Airbnb-style accommodation. Port Dickson has the potential to provide this kind of accommodation," he told Business Times. 

In a filing with the stock exchange today, PM Holdings disclosed that Exsim Hospitality Holdings Sdn Bhd has inked agreements to purchase a 38.59 per cent stake from Loyal Design Sdn Bhd, an 18.4 per cent stake from MUI Media Ltd, and an 8.91 per cent stake from Megawise Sdn Bhd. 

Loyal Design and MUI Media are wholly-owned subsidiaries of Malayan United Industries Bhd (MUI), while Megawise is wholly-owned by cocoa-based biscuit maker Pan Malaysia Corp Bhd (PM Corp), which itself is 51 per cent owned by MUI. 

Khoo holds an indirect interest of 41 per cent in MUI through Cherubim Investment (HK) Ltd, Norcross Ltd, Bonham Industries Ltd, and KKP Enterprises Sdn Bhd. 

Exsim Hospitality is 25 per cent owned by Lim Aik Fu, with the remaining stake equally divided between his elder brothers, Lim Aik Hoe and Lim Aik Kiat. 

PM Holdings' listing status will be retained on Bursa Malaysia.