MQ Technology Bhd (MQ Tech) is expanding into real estate and tourism development by purchasing a share in a property firm in order to diversify its revenue streams.

According to the firm, it plans to market property development projects.

MQ Tech notified Bursa Malaysia that on September 24, 2021, it had entered into a Share Sale Agreement (SSA) with Lee Khoon Eng to buy 3.06 million shares, or a 51 percent investment in Oriental Link Properties (M) Sdn Bhd, for RM3.65 million.

Oriental Link, situated in Butterworth, Penang, is a property developer and construction company.

MQ Tech stated that the purchase price for the offered Oriental Link shares was determined after taking into account the fair market value of the company's 1,494 square metre land in Penang.

In response to an enquiry from Bursa Malaysia yesterday, it stated that the property's market worth is RM3.9 million.

According to MQ Tech, the market value was agreed upon, based on the approval given by Jabatan Perancang Bandar dan Desa Negeri Pulau Pinang in September 2018 to allow Oriental Link to construct a 31-story hotel building on the property.

According to the company, the three-star hotel has 198 rooms and a gross development value (GDV) of RM81 million, with a gross development cost (GDC) of roughly RM43 million.

MQ Tech further stated that Oriental Link's most recent audited records for the year ended August 31, 2019, revealed a deficit of RM28,341.00 and net assets of RM131,140.00.

"Upon completion of the proposed construction, MQ Tech will diversify into tourism and service industry," it said.

MQ Tech did not say whether the 198-room hotel project would be continued or if a new development will be built on the site.

The proposed acquisition is expected to be finalised by the second quarter of 2022, barring unforeseen circumstances, according to the company.