Shareholders of Goh Ban Huat approve land sale

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KUALA LUMPUR (Sept 30): Shareholders of Goh Ban Huat Bhd today unanimously voted to dispose of 13.93 acres land along Jalan Segambut to Keladi Maju Bhd for a total cash consideration of RM192.4 million.

The group will be realising a net gain of approximately RM71.2 million from the sale.

The proceeds raised from the land disposal was initially to be used to fund the reverse takeover (RTO) that would have transformed the firm into an oil and gas (O&G) services player.

However, GBH announced today that the group and Dynac Sdn Bhd have mutually agreed to terminate their Memorandum of Agreement (MoA) dated July 2, 2014, for the acquisition of the latter’s entire issued and paid up share capital.

No reason was given for the termination of the deal.

Accordingly, GBH has today resolved to withdraw ordinary resolution 2 in respect of the proposed provision of financial assistance as set out in the notice of extraordinary general meeting (EGM) dated Sept 15, from being tabled at its EGM today.

Following this, GBH's largest shareholder and Chairman Tan Sri Robert Tan said the group is looking for new business opportunity and that the money gained from the land disposal will be utilised for this purpose.

“We are also considering to pay some of the proceeds back to shareholders, should we failed to identify new assets,” he said.

Speaking to reporters after chairing the EGM, Tan however said the transaction is still pending the approval of the relevant state authorities.

“The transaction is expected to be completed in the next few months,” he added.

When pressed further on the possible new business for the group, Tan remained tight lipped, saying the group has several options to choose from, but will only make a decision after studying all proposals.

“As a business entity, we must have prepared several options. But it is too early to disclose anything, as nothing was firmed up yet,” he said.

“We will venture into any business that is beneficial to the group,” he said, but did not set any timeline for that.

GBH shares, which was suspended during the morning trading session today, fell 23 sen when it opened at RM2.02 at 2.30 pm. The stock closed at RM2.25 yesterday.