Benalec rises 4% on RM107m Melaka land sale

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KUALA LUMPUR (Dec 3): Benalec Holdings Bhd rose as much as 2.5 sen or 3.6% to 71.5 sen following news that the construction firm is selling nine pieces of yet-to-be reclaimed land in Melaka for some RM107 cash.

Benalec shares were traded at 71 sen at 11.30am with about 2.1 million shares done. For comparison, the FBM KLCI fell 15.65 points or 0.88%.

Yesterday, Benalec announced it had entered into a sale and purchase agreements with Jadex Land Sdn Bhd to dispose of nine pieces of land in Pekan Klebang, Melaka

The transaction is conditional upon Benalec obtaining the land titles for the tracts.

The land disposal is expected to be completed by the fourth quarter of 2015.

Today, Kenanga Investment Bank Bhd wrote in a note that it was positive on the Benalec's land transactions. Kenanga said the land sale would provide earnings visibility to Benalec for at least two years.

Kenanga maintained its “outperform” recommendation for Benalec shares with sum-of-parts-based target price of RM1.25.