KUALA LUMPUR (Oct 13): Ibraco Bhd is disposing two pieces of vacant land in Sarawak to its 70%-owned subsidiary, Ibraco HGS Sdn Bhd (Ibraco HGS), for RM3.625 million cash.
Ibraco said the land was owned by its wholly owned units, Syarikat Ibraco-Peremba Sdn Bhd (Ibraco-Peremba) and Greater Tabuan Sdn Bhd (Greater Tabuan), and the proceeds from the sale “will be used for the declaration of dividends to Ibraco, the holding company”.
Ibraco told Bursa Malaysia today that both of its subsidiaries had last Friday (Oct 10) entered into separate sale and purchase agreements (SPAs) with Ibraco HGS in relation to the above transaction.
Ibraco said the two pieces of land measuring approximately 4,775 sq m (lease land) and 9,535 sq m (free hold) are to be disposed at RM955,000 and RM2.67 million respectively.
Ibraco said the disposal, to be completed in 90 days from the date of the SPAs, will allow the group to restructure its land bank while enabling Ibraco-Peremba and Greater Tabuan to monetise their land bank.
Shares of Ibraco inched up 5 sen or 3.38% to close at RM1.53 bringing the market capitalisation of the group to RM193.55 million.