KUALA LUMPUR (Jan 14): Ivory Properties Group Bhd’s wholly-owned subsidiary, Ivory Indah Sdn Bhd, has entered into a sale and purchase agreement with Jesselton Peak Sdn Bhd for the disposal of a 21.78 ha land in Jesselton, Penang, for RM150 million.

The property was acquired by Ivory (fundamental score: 1.1; valuation score: 2.1) on Aug 6, 2007, for RM53 million. A gain of approximately RM38 million or 8.53 sen will arise from the disposal of the freehold land.

Datuk Low Eng Hock, group chief executive officer of Ivory, said that the proceeds from the disposal will be used for working capital purposes and also to finance the repayment of its bank borrowings.

“It is anticipated that such move will strengthen the group’s financial position to seek other potential investment and facilitate any expansion plan for its current business activities in line with the group’s business model,” he said.

Ivory closed 2 sen or 4.94% higher at 42.5 sen, bringing its market capitalisation to RM187.12 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.)