Friday 29 Mar 2024
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KUALA LUMPUR: Ivory Properties Group Bhd (fundamental: 1.1; valuation: 2.1) is disposing of its entire 49% stake in Aspen Vision Land Sdn Bhd (AVL) to Aspen Vision Development Sdn Bhd (AVD) for RM55 million.

The divestment will result in a gain on disposal of about RM35 million or 7.92 sen per share to the Penang-based property group.

In a filing with Bursa Malaysia yesterday, Ivory Properties said the divestment comprises 1.96 million shares of RM1 each and 177,380 redeemable preference shares (RPS) of RM1 each at an issue price of RM100 per RPS.

“Following the execution of the agreement, the sale shares will be transferred from Ivory to AVD, and AVL will cease to be part of Ivory Group,” it said. The principal activity of AVL is property development.

Ivory Properties said the divestment will enable Ivory Group to unlock the value of its investment immediately as the management opted to focus on projects located on the island of  Penang and other states that can generate returns over a shorter gestation period. 

The disposal price, which is a substantial premium over its original cost of investment, will also raise funds to strengthen Ivory Group’s financial position to facilitate any expansion plans for its current business activities, it added.

The divestment is expected to be completed by June 2016, and is not expected to result in Ivory Properties becoming a cash company or a Practice Note 17 company, it added.

 

 

This article first appeared in The Edge Financial Daily, on January 23, 2015.

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