Talam Transform unit sells two plots of land for RM106.86m to repay debt

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KUALA LUMPUR (Mar 20): Talam Transform Bhd's wholly owned subsidiary Europlus Corp Bhd has disposed of two adjacent plots of freehold land in Serendah, Selangor, to Metro Ingenious Sdn Bhd for RM106.86 million to repay the group's debts.

In a filing to Bursa Malaysia today, Talam Transform (fundamental: 0.45; valuation: 1.2) said the initial cost of investment in the two plots of land are RM15.06 million (27.8ha) and RM28.01 million (49.02ha).

The lands, slated for commercial use, are under a caveat lodged by IJM Construction Sdn Bhd and part of the purchase consideration - RM24.96 million - would be paid directly to the caveator.

"The proposed land disposal will enable Talam Transform to improve its liquidity position and reduce the group's debts," said Talam Transform.

The disposal would bring it a net gain of RM48.48 million or 1.17 sen per share, increase its net assets by 1.19 sen to 0.15 sen per share and improve its gearing ratio to 0.3 from 0.51.

Europlus Corporation and Metro Ingenious, a wholly owned subsidiary of TA Global Bhd (fundamental: 1.05; valuation: 2.4), entered into a sales and purchase agreement over the disposal today.

The disposal is expected to be completed within seven days of the SPA signing or one month after the expiry of the completion date.

Talam Transform closed half a sen or 5.88% lower at 8 sen, with a market capitalisation of RM358.5 million.

TA Global shares closed unchanged at 32 sen, with a market capitalisation of RM1.703 billion.

(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.)