Mulpha International up 2.34% on disposing Cairns resort for RM188m

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KUALA LUMPUR (July 18): Mulpha International Bhd shares rose 2.34% this morning after the group said it is disposing of its Rydges Esplanade Resort in Cairns, Australia to JY Cairns Esplanade Hotel Pty Ltd for A$65 million (approximately RM187.91 million) cash.

At 9.35am, Mulpha added 5 sen to RM2.19 for a market capitalisation of RM699.96 million.

Mulpha said the 31-year-old property is a 4-star hotel with 242 guest rooms, occupying 7,444 sq m. As at Dec 31, 2018, the audited net book value of the property stood at A$35.8 million.

Based on the sale price of the property, the proposed disposal is expected to result in a net gain after tax of A$14.9 million after deducting the performance obligation, agency commission, legal and all incidental costs.