Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 26): Paramount Corp Bhd shares rose 2% this morning after the group proposed to dispose of three of its tertiary education campuses in Penang and Selangor to a special purpose vehicle (SPV), for a combination of cash amounting to RM420 million and new cumulative redeemable non-convertible preference shares in the vehicle.

At 9.31am, Paramount rose 4 sen to RM2.04 with 17,000 shares traded.

The proposed sale of the campuses — from its wholly-owned subsidiaries KDU University College (PG) Sdn Bhd (KDUPG) and KDU University College Sdn Bhd (KDUUC) to the SPV, Dynamic Gates Sdn Bhd (DGSB) — also entails a subsequent leaseback of the properties.

KDUPG will be selling its Jalan Anson Campus Properties and Batu Kawan Campus Properties, both in Penang, for RM50 million and RM120 million, respectively, while KDUUC will be disposing of its Utropolis Glenmarie Campus Properties in Selangor for RM250 million.

The original investment cost for the three properties was RM377.64 million.

The proposed exercises will be undertaken via a securitisation exercise and will streamline the assets owned by the group to achieve a more efficient capital structure by better matching the maturity profile of the borrowings to the lease period of the subject campus properties.

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