PETALING JAYA (July 6): Daya Land & Development Sdn Bhd, an indirect subsidiary of Daya Materials Bhd, has proposed to dispose of its 51% stake in Semangat Global Sdn Bhd to Highstar Realty Sdn Bhd for RM3.84 million.
In a filing with Bursa Malaysia today, Daya Materials (fundamental: 0.55; valuation: 0.9) said Highstar Realty had offered to buy Daya Land & Development's 102,000 shares in Semangat Global via a letter dated today.
Daya Materials said upon disposal of the stake, Semangat Global will cease to be a joint venture (JV) company of Daya Land & Development.
Daya Land & Development is a subsidiary of Daya CMT Sdn Bhd, which is a 70%-owned subsidiary of Daya Materials.
Daya Materials said Semangat Global had entered into a shareholders agreement with Chang Cheng Realty Sdn Bhd on November 20, 2012 to jointly develop and construct one block of 28-storey retail/showroom/service suites, 40 blocks of four-storey shop lots and eight blocks of three-storey shops on four parcels of empty land located at Jalan Pintas in Penampang, Sabah.
However, Daya Materials said the disposal of Semangat Global, a JV company formed to undertake construction and property development projects, was “in the best interest” for the group and in-line with the group’s overall objective to focus resources in the core business of oil and gas.
Daya Materials said the disposal would yield a gain of RM1.09 million on the group level and payment will be settled in three tranches.
The disposal is not expected to have any effect on the earnings and earnings per share of the group for the financial year ending Dec 31, 2015, it added.
Daya Materials shares closed unchanged at 12 sen today, with a market capitalisation of RM198.22 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)