Benalec to sell four pieces of land for RM53.35m

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KUALA LUMPUR (Nov 21): Benalec Holdings Bhd expects to realise RM9.3 million from the disposal of four pieces of leasehold land in Melaka for RM53.35 million.

In a filing to Bursa Malaysia today, Benalec said its unit Strategic Land Sdn Bhd had entered into a sale and purchase agreement with Innovative Advisory Sdn Bhd for the land parcels in Pekan Klebang, Melaka, measuring a total of 115,246 sq m.

The realised net gain of RM9.31 million from the disposal represents earnings per share of approximately one sen, and would nudge its net asset per share to 77 sen from 75 sen based on its total issued share capital of 819 million ordinary shares but excluding 12.72 million treasury shares, as at June 30.

The proceeds arising from the disposal are to be used to finance the company's ongoing reclamation projects and to meet working capital requirements.

"Proceeds arising from the disposal are expected to be utilised within 12 months from the completion of the disposal," it said, adding the sale would also provide an avenue for Benalec to monetise and crystallise the value of its landbank, while at the same time improve the cash flow of the company.

"The board, after having considered all aspects of the disposal, is of the opinion that the disposal is in the best interest of Benalec and is not detrimental to the interests of the minority shareholders of Benalec," said the group.

Benalec shares closed down 0.5 sen or 2.5% today to 19.5 sen for a market capitalisation of RM165.57 million.