KUALA LUMPUR (Nov 3): Lion Diversified Holdings Bhd has proposed to sell 63.4 hectares of freehold land in Selangor for RM36.5 million cash.

In a filing to Bursa Malaysia today, Lion Diversified said its wholly-owned subsidiary LDH Trading Sdn Bhd had on Nov 2 entered into a sale and purchase agreement with KLC Agro Sdn Bhd for the land disposal.

"The proposed disposal is expected to record a gain of RM19.8 million, which will translate to an increase in earnings per share (EPS) by approximately one sen to the group for the financial year ending June 30, 2016 (FY16)," it said.

Lion Diversified also said part of the proceeds arising from the proposed disposal will be used to repay borrowings amounting to RM20 million while the balance will be used as working capital.

According to the filing, the vacant land is located at Kuala Langat, Selangor, and the original cost of the investment was RM14.7 million

The disposal consideration of RM36.5 million was arrived at on a willing buyer-willing seller basis after taking into consideration the net book value of the land of RM15.1 million based on the audited account of LDH Trading as at June 30, 2015; and the market value of the land is RM37.5 million as appraised by independent professional valuer PPC International Sdn Bhd.

Lion Diversified's share price closed 0.5 sen or 6.25% higher at 8.5 sen today, for a market capitalisation of RM118.33 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.)