UPDATE 1-Malaysia's UBG to buy stakes in builders

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KUALA LUMPUR, Feb 4 (Reuters) - Malaysia's UBG Bhd (UBGB.KL: Quote, Profile, Research, Stock Buzz) agreed to buy stakes in two local builders for 457 million ringgit ($141.3 million) and plans to buy up the remaining shares.

UBG, formerly known as Utama Banking Group, said it would buy 49.2 percent of Putrajaya Perdana Bhd (PUTA.KL: Quote, Profile, Research, Stock Buzz) and 37.6 percent of Loh & Loh Corp Bhd (LOHC.KL: Quote, Profile, Research, Stock Buzz).

UBG also plans to buy the remaining shares in Putrajaya Perdana and Loh & Loh at 4.85 ringgit each.

Shares of Putrajaya Perdana last traded at 4.24 ringgit and Loh & Loh at 4.34 ringgit. UBG is controlled by the family of the chief minister of eastern Sarawak state.

It had cash of 2.2 billion ringgit as at end-September 2007. In May last year, it was given eight months to find a business or be delisted.

UBG also said it would buy two road builders from its controlling shareholder, Cahya Mata Sarawak Bhd (CMSM.KL: Quote, Profile, Research, Stock Buzz), for 135 million ringgit.

Trading in the shares of UBG, Putrajaya Perdana and Loh & Loh has been suspended until Monday for the announcement. ($1=3.235 Malaysian Ringgit) (Reporting by Clarence Fernandez and Syed Azman; editing by Louise Heavens)