Friday 29 Mar 2024
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KUALA LUMPUR (March 9): Benalec Holdings Bhd’s subsidiaries today entered into three separate Sale and Purchase Agreements (SPAs) with Arena Progresif Sdn Bhd to dispose nine parcels of reclaimed leasehold land for a total cash consideration of RM128.91 million.

These lands are located in Pekan Klebang Seksyen II, Melaka, measuring about 70.46 acres, according to Benalec (fundamental: 1.15; valuation: 0.60)’s filing with Bursa Malaysia this evening.

Benalec’s subsidiaries that entered into these SPAs are Strategic Land Sdn Bhd and Heritage Land Realty Sdn Bhd, both wholly-owned subsidiaries of Benalec Sdn Bhd, which in turn is wholly-owned by Benalec.

“The land disposal is in line with the Benalec group’s business model to dispose the reclaimed land received from reclamation projects in Melaka which involve settlement in kind for cash in a timely manner either through disposals or joint ventures,” the marine construction group said in the filing.

Benalec also said the disposal gave it an avenue to raise funds to repay its debt and finance on-going and future reclamation projects.

“By selling lands, it provides Benalec the opportunity to immediately crystallise the value of its landbank, which will improve the operating cash flow of the company in the future,” it added.

According to Benalec’s second quarter financial report ended Dec 31, 2014 (2QFY15), the group has cash and bank balances of RM6.05 million as at end of last year, down from RM17.58 million as at June 30, 2014.

Benalec’s counter fell half a sen or 0.6% to 83 sen today, giving it a market capitalisation of RM667.28 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.)

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