KUALA LUMPUR (Apr 14): Berjaya Corp Bhd (BCorp) has proposed to dispose of its entire stake in its wholly-owned indirect subsidiaries, Berjaya Bandartex Sdn Bhd (BBandartex) and Berjaya Knitex Sdn Bhd (BKnitex), together with a piece of land in Johor, for RM30 million.

In a filing with the exchange, BCorp said its wholly-owned subsidiary Berjaya Group Bhd (BGroup) has entered into two share sale agreements with Ramatex Bhd yesterday to dispose of its 100% equity interest in BBandartex for RM16.59 million, and 100% holdings in BKnitex for RM11.14 million.

Meanwhile, Berjaya’s wholly-owned unit Berjaya Soutex Sdn Bhd (BSoutex) has entered into a sale and purchase agreement with Ramatex on the same day for the disposal of a piece of land in Johor for RM2.26 million or about RM53.68 per sq ft.

BGroup’s original cost of investment in BBandartex and BKnitex is about RM10.91 million and RM5.10 million respectively, which was incurred since 1989.

As at January 31, 2015, BGroup’s total carrying value in Bbandartex and BKnitex was about RM6.18 million and RM5.10 million, respectively. The total carrying value of the Johor land in the books of BSoutex as at Jan 31, 2015 was about RM0.315 million. The property was acquired by BSoutex in 1974.

“The proposed disposals represent an opportunity for the BCorp group to unlock value and realise its investments in BBandartex, BKnitex and the BSoutex property,” said BCorp (fundamental: 0.9; valuation: 2).

The group said the proceeds from the disposal will be used for working capital purposes.

It expects a gain of approximately RM17.39 million from the proposed disposal, and expects the sale to be completed in mid-2015.

BCorp fell 0.5 sen or 1.06% to close at 46.5 sen today, bringing it a market capitalisation of RM1.93 billion.

(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.)