KUALA LUMPUR (May 14): Enra Group Bhd has disposed of its 70% stake in property development firm Landmark Zone Sdn Bhd (LZSB) for RM5.6 million.
"The divestment plan will enable Enra to monetise its investment in LZSB and provide the company with funds to reinvest in other more earnings accretive opportunities and to meet working capital requirements," the group said in a Bursa Malaysia filing.
LZSB completed its sole mixed development project, Shamelin Star, in Taman Shamelin Perkasa, Kuala Lumpur in December 2016.
The purchaser, Law Wai Cheong, is a director of LZSB. He is also the son of Hiap Teck Venture Bhd executive deputy chairman Tan Sri Law Tien Seng.
Enra said proceeds from the disposal will be used for investment or development of new viable businesses or assets and working capital.
The group said there will be a net loss on disposal of about RM820,000.
The transaction will also reduce its earnings per share by one sen for the financial year ending March 31, 2018, it said.
Enra shares were last traded at RM2.60 on May 4, for a market capitalisation of RM350.79 million.