Malaysia's UBG pays $141 mln for stakes in builders

KUALA LUMPUR, Feb 4 (Reuters) - Malaysia's UBG Bhd (UBGB.KL: Quote, Profile, Research, Stock Buzz), a cash shell looking for a business, ventured into the construction industry on Monday, agreeing to buy stakes in two local builders for 457 million ringgit ($141.3 million).

UBG, which last year sold its only real asset, an interest in RHB banking group (RHBC.KL: Quote, Profile, Research, Stock Buzz), 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).

Formerly known as Utama Banking Group, UBG is controlled by the family of the chief minister of eastern Sarawak state.

It had cash of 14 million ringgit as of March 2007, when it issued its last set of accounts. In May last year, it was given eight months to find a busines or be delisted. ($1=3.235 Malaysian Ringgit) (Reporting by Clarence Fernandez; Editing by Syed Azman)