Friday 29 Mar 2024
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KUALA LUMPUR (Apr 28): Muar Ban Lee Group Bhd has entered into a memorandum of understanding (MoU) to dispose of its oil palm plantation unit Sokor Gemilang Ladang Sdn Bhd to Kenali Berkat Sdn Bhd for RM35.1 million.

In a filing with Bursa Malaysia today, Muar Ban Lee (fundamental: 1.95; valuation: 1.4) said its wholly-owned subsidiary MBL Plantation Sdn Bhd has entered into an MoU with Kenali Berkat to outline the basic principles for the disposal of entire issued and pail-up stake of Sokor Gemilang.

“The Proposed Disposal shall have no binding effect until the entering into a definite agreement (DA),” Muar Ban Lee said.

The group added that the DA is expected to be executed within six months from the date of the MoU.

Muar Ban Lee said the disposal represents a strategic opportunity for it to realise its investment.

“The proceeds from the disposal would provide future cash flow for the group’s working capital purposes, reduce its borrowings and/or contribute towards expansion of its core business,” it said.

The group also noted that the disposal is subject to due diligence exercise and prior approval from its shareholders.

Muar Ban Lee settled unchanged at 79 sen today, with a market capitalisation of RM72.68 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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