LBS Bina declares two sen special dividend for FY2016, proposes six sen for FY2017

KUALA LUMPUR (April 5): LBS Bina Group Bhd has declared a special tax-exempt dividend of two sen per share for the financial year ended Dec 31, 2016 (FY2016).

The property developer said the dividend will be paid out from the receipt of the third tranche of the promissory note payment worth HK$200 million.

It will be paid on June 30 to depositors registered in the record of depositors on June 20, LBS Bina said in a filing with Bursa Malaysia.

The group added that it will also pay a special dividend of six sen per share in FY2017, once it has received the fourth tranche of the promissory notes payment amounting HK$200 million.

“The first payment will be made in the fourth quarter of 2017, while the remaining two payments are to be paid in the calendar year 2018. Relevant dates of entitlement and payment for the special dividend will be announced at a later date,” LBS Bina said.

The group said no tax is payable on these special dividends as they are  paid out of income from a foreign source.

LBS Bina had in August 2013 announced that it has disposed of its 100% equity interest in Lamdeal Consolidated Development Ltd and Lamdeal Golf & Country Club Ltd to Jiuzhou Tourism Property Co Ltd, which in turn is a wholly-owned subsidiary company of Zhuhai Holdings Investment Group Ltd for an aggregate sale consideration of HK$1.65 billion.

The total sale was paid via cash of HK$500 million, new issuance of Zhuhai Holdings shares and deferred cash payment of HK$850 million from the promissory note.

A promissory note is a signed document containing a written promise to pay a stated sum to a specified bearer either at a specified date or on demand.

In its 2016 annual report, LBS Bina said the promissory note has a principal amount of HK$850 million and is secured, interest free and receivable by four annual instalments.

The group said it received the first instalment of HK$250 million  (equivalent to RM112.7 million) in 2014, while the second instalment of HK$200 million (RM107.5 million) was received in 2015.

“The remaining two instalments of HK$200 million each are receivable on or before Dec 31, 2016 and Dec 31, 2017 respectively. The promissory note is carried at amortised cost based on an effective interest rate of 5% per annum,” LBS Bina had said in the annual report.

LBS Bina’s share price rose one sen or 0.49% to RM2.07 today, for a market capitalisation of RM1.36 billion. — theedgemarkets.com

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