Ewein Bhd is expanding its portfolio with a RM25.84 million land acquisition in Penang, directly associated with its major shareholder, Ooi Eng Leong.

The move marks a pivot towards diversification, as the company ventures into workers' dormitory accommodation and related manpower management services to bolster its revenue streams.

Through its subsidiary Delight Island Sdn Bhd, the property developer and manufacturer plans to acquire a parcel of vacant industrial land in Seberang Perai Utara, Pulau, intending to develop a 16-storey workers' dormitory to meet the increasing demand for such accommodation in Penang.

In a bid to reduce reliance on its current business operations, Ewein aims to explore further opportunities in workforce management services, leveraging the sector's growth prospects.

Its board anticipates that this diversification will enhance the group's future earnings while concurrently committing to improving profitability in existing operations through strategic enhancements and expanded market presence.

The transaction is classified as a related party deal, given Ooi's directorship in MHSB and major shareholdings in both Ewein and MHSB.

Ewein's ED and CEO, Goh Kiang Teng, and executive chairman, Tay Seng Chew, are associated with Ooi and have abstained from participating in board discussions and voting on the acquisition, including the ordinary resolution at the forthcoming EGM.

These individuals collectively hold approximately 47.39% of Ewein's shares.

Notably, in June 2023, major shareholder Ooi via NationGate Holdings Bhd launched a mandatory takeover offer (MGO) for the balance 49.41% stake in Ewein, following his increased equity interest in the company.