Iskandar Waterfront rises 11.38% on land disposal

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KUALA LUMPUR (April 6): Shares in Iskandar Waterfront City Bhd jumped as much as 11.38% or 14 sen in the morning trades after the group announced its plan to dispose three freehold lands in Johor for RM2.37 billion. 
As at 10.06am, the counter was traded at RM1.33, up 10 sen or 8.13%, bringing its market capitalisation to RM823.76 million. It was the fifth largest gainers across the bourse. 
Some 1.32 million units shares changed hands between RM1.30 and RM1.37. 
On last Friday (April 3), Iskandar Waterfront City (fundamental: 1.65;  valuation: 1.5) said it was disposing of three contiguous pieces of freehold land in Plentong, Johor, which collectively measures some 127.92 acres (51.77ha), for RM2.37 billion or approximately RM426 per sq ft.
Upon completion of the proposed land disposal, Iskandar Waterfront expects to recognise a gain of approximately RM1.2 billion (after taxation) or approximately RM1.80 sen per share. 
The deal is also expected to reduced the group's gearing to 0.06 times from 0.13 times presently. 
Iskandar Waterfront estimates the deal to be completed by the first quarter of 2018.

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