Dolphin: Shah Alam land buy done on ‘willing-buyer willing-seller’ basis

KUALA LUMPUR (Dec 29): Dolphin International Bhd has clarified that its purchase of a parcel of land in Shah Alam for RM7.25 million was made on a “willing-buyer willing-seller” basis.
 
In a filing with Bursa Malaysia, the group said there was no formal valuation conducted on the property, which also includes a single-storey detached factory with an integral double-storey office, a guard house, a pump house and a refuse chamber.
 
The property was bought by Dolphin’s wholly-owned subsidiary, Dolphin Applications Sdn Bhd, from Sunlun Corp Sdn Bhd (SCSB).
 
“The disposal price for the proposed disposal was arrived at on a willing-buyer willing-seller basis after the negotiation process, and taking into consideration the current conditions and location of the property, its indicative value of RM7 million by the banks which was the initial offer price by SCSB, the original cost of investment of the property, as well as the average selling price of similar properties that had been sold at RM7.167 million,” said Dolphin.
 
It added that the purchase price is at a premium of 1.16% above the average selling price of similar properties.
 
Proceeds from the proposed disposal amounting to RM5.05 million will be allocated for working capital to finance the group’s day-to-day operations, which include the procurement of materials and parts and operating expenses.
 
Of that, RM2 million will be used to purchase of materials and parts, including steel sheets and plates, metal bars, hydraulic parts, control panels and system enclosures, whereas the remaining RM3.05 million will be used for operating expenses.
 
Dolphin’s shares traded unchanged to close at 37 sen yesterday, valuing the group at RM82.14 million. — theedgemarkets.com