KUALA LUMPUR (Nov 5): Shares of Global Oriental Bhd (GOB) rose in early trade on Wednesday and were among the top gainers after the company announced that its wholly-owned subsidiary Taman Equine Industrial Sdn Bhd has entered into a conditional proposed sale and purchase agreement (SPA) to dispose two parcels of leasehold land measuring 15.56 acres in Taman Equine, Seri Kembangan for RM142.35 million.
At 9.08am, GOB rose 10.27% or 9.5 sen to RM1.02 with 2.01 million shares traded.
In a filing with Bursa Malaysia, GOB said the tracts had an estimated gross development value of RM740 million with estimated development costs of RM557 million, resulting in an estimated gross development profit of RM183 million.
A majority of the disposal proceeds is expected to be utilized for working capital (RM103.85 million) and repay bank borrowings (RM35 million). The company is able to realize a net gain of approximately RM85.22 million upon completion of the disposal.