While IOI Corp Bhd is the registered owner of the 263.8-hectare (ha) freehold agricultural land, GLM EIPJ is the beneficial owner as it had acquired the land from IOI Corp in 1996, after which IOI Corp granted the power of attorney to GLM EIPJ to deal with the property, as if it is the registered proprietor.
Yesterday, GLM EIPJ inked an agreement with Parkland Avenue Sdn Bhd (PASB) and IOI Corp Bhd for the proposed disposal, Guocoland said in a stock exchange filing yesterday. The plot was valued at RM99.4 million by CH WIlliams Talhar & Wong Sdn Bhd, according to a valuation certificate dated Jan 2.
The disposal is expected to generate an estimated net gain of approximately RM35.35 million for Guocoland.
“The proposed disposal will enable Guocoland group to realise its investment in the property and to focus on its core business of property development,” it said.
Of the total proceeds, Guocoland said RM98.07 million will be used for general working capital and/or be distributed to shareholders of GLM EIPJ, while RM21.19 million will be used to defray estimated tax and expenses related to the proposed disposal.
“The proposed disposal is subject to the approval of the Estate Land Board for the transfer of the property from the proprietor to the purchaser,” it added.
The group expects the proposed disposal to be completed in the first half of 2020.
Guocoland shares closed unchanged at 72 sen yesterday, giving it a market capitalisation of RM504.33 million.