Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on October 20, 2015.

 

KUALA LUMPUR: Guocoland (M) Bhd’s associate Vintage Heights Sdn Bhd is selling a 679.2ha piece of land in Sepang, Selangor, to Putrajaya Properties Sdn Bhd for RM474.99 million cash.

Upon completion of the proposed disposal, Vintage Heights is expected to realise a net gain of some RM290 million. About RM116 million is expected to be attributable to Guocoland.

“The net gain attributable to owners of the company represents an increase in earnings per share and net assets per share of the company of 17.31 sen,” said Guocoland in a filing with Bursa Malaysia yesterday.

Guocoland said Vintage Heights last Friday signed a conditional sale and purchase agreement with Putrajaya Properties and Hap Seng Consolidated Bhd for the proposed disposal, which is expected to be completed in the second half of 2016.

Vintage Heights bought the land from its shareholder Hap Seng Consolidated on March 27, 1992 for RM50.48 million. The net book value of the land stood at RM84.16 million as at June 30 this year.

Vintage Heights plans to use the proceeds for its working capital purposes, repayment of borrowings and/or distribution to its shareholders.

Part of the land measuring 0.3ha is to be surrendered by Vintage Heights to the relevant governmental authority in Selangor. As such, Vintage Heights is proposing to sell to Putrajaya Properties the land excluding such portion.

Still, the land disposal is subject to two conditions precedent being fulfilled by Vintage Heights, that is, the completion of the surrender procedure with the title document for the property reissued by the Selangor authorities and the approval of the Estate Land Board for the transfer of the property from Vintage Heights to Putrajaya Properties.

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