KUALA LUMPUR: Eden Inc Bhd yesterday announced that Zil Enterprise Sdn Bhd (ZESB) plans to settle a long standing RM45.6 million debt owed to Eden's subsidiary, Stratavest Sdn Bhd, by transferring a 22.3 hectare land in Kuantan to the company, in a related party transaction (RPT).

Substantial shareholder and executive chairman Tan Sri Abd Rahim Mohamad holds a 100 per cent interest in ZESB, the debtor.

The company's Independent Auditor's Report dated Oct 31, 2023 had highlighted the recoverability of the debt as a key audit matter.

The land was valued at RM50.5 million on Mar 6, 2024 by independent valuer Laurelcap Sdn Bhd.

The proposed land transfer will increase the group's existing land bank from approximately 361.53 acres to approximately 416.63 acres after the transfer of the land from ZESB.

In a filing with Bursa Malaysia Securities, Eden said Vista Legacy Sdn Bhd will make a cash payment of RM4.85 million to ZESB to settle the difference betweent he debt owed and the value of the land.

Meanwhile, Eden also proposes to issue free warrants up to 252.68 million on the basis of one warrant for every two Eden shares held for its shareholders.

It will also set up a five-year employee share option scheme (ESOS) that will involve up to 15 per cent of its total issued shares.

Eden's share price was down three per cent to 16 sen a share as at 9.10am.