UEM Sunrise plans RM372.57m land disposals in Canada

KUALA LUMPUR (March 13): UEM Sunrise Bhd's wholly-owned subsidiary UEM Sunrise (Canada) Alderbridge Ltd (UEMS Alderbridge) plans to sell three parcels of land in the District of New Westminster, Richmond, British Columbia, Canada, with a total area of 4.9 acres to 1107782 B.C. Ltd, a wholly-owned subsidiary of South Street Development Group for RM372.57 million.

In the filling to Bursa Malaysia today, UEM Sunrise said that UEMS Alderbridge has on March 11, 2017 received a non-refundable first deposit of C$50,000 (RM164,855) for the proposed disposal.

"The proposed disposal is in line with the UEM Sunrise Group's strategy to concentrate on the domestic market in Malaysia and to shift its international business focus to Australia where the UEM Sunrise Group has two ongoing projects and a third project currently in the pipeline," UEM Sunrise said.

"The move is expected to allow the UEM Sunrise Group to better focus itself in growing its operations in these countries," the group added.

UEM Sunrise said the proposed disposal will not have any effect on its issued and paid-up share capital and shareholdings of its substantial shareholders, as the proposal does not involve the issue of new shares by UEM Sunrise.

UEM Sunrise said the proposed disposal is expected to contribute about RM72.04 million to the group's earnings, adding that it is also not expected to have a material effect on UEM Sunrise's gearing.

"The proceeds from the proposed disposal will be utilised to meet the UEM Sunrise's working capital requirements, and is expected to be utilised within a period of 12 months," the group said.

The proposed disposal is expected to be completed within the third quarter of year 2017, added the group.

At 2.37pm, shares in UEM Sunrise were up six sen or 5.04% to RM1.25, for a market capitalisation of RM5.49 billion. — theedgemarkets.com

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