Landmarks divests stake in MSL Properties for RM87.4 mil

KUALA LUMPUR (July 21): Landmarks Bhd is selling its 20% stake in MSL Properties Sdn Bhd to Singapore's MCL Land Ltd, for RM87.38 million.

In a filing with Bursa Malaysia today, Landmarks said the net proceeds from the proposed disposal of RM82.9 million will be used for the group’s capital expenditure and working capital purposes and is expecting full utilisation within 24 months from its receipt.

“The cash proceeds to be realised from the proposed disposal will allow the Board to direct the resources to finance the capital expenditure for the Group’s project at Treasure Bay Bintan and for working capital purposes,” said Landmarks.

In addition, Landmarks said its indirect wholly-owned subsidiary, Kuala Lumpur Suburban Centre Sdn Bhd (KLSC), Handal Dinamis Holdings Bhd and Permodalan Peremba Sdn Bhd (PPSB) have jointly agreed to dispose of their respective ordinary and preference shares in MSL Properties to MCL.

The share capital of MSL comprises 1 million ordinary shares and 2 million preference shares, whereby KLSC, Handal, MCL and PPSB holds 200,001 ordinary shares, 300,000 ordinary shares, 499,999 ordinary shares, and 2 million preference shares respectively.

“The Landmarks Group’s 20% equity interest in MSL is not strategic and does not accord any management control,” said Landmarks, adding that MCL has offered to purchase KLSC’s equity interest in MSL based on the revalued net asset valuation (RNAV) of MSL as at Dec 31,2016 of RM436.9 million.

Upon completion of the exercise, after netting off relevant estimated expenses and provision for real property gains tax, Landmarks said it will record a gain on disposal of approximately RM12.5 million.

Barring unforeseen circumstances, Landmarks said the exercise is expected to be completed in three months.

Shares in Landmarks were up half a sen or 0.57% at 88.5 sen today for a market capitalisation of RM468.07 million. — theedgemarkets.com

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