ECM Libra subsidiary to dispose of Tune Hotel in Penang for RM51.89 mil

• The company disclosed that its wholly owned subsidiary, ECML Hotels Sdn Bhd, executed a conditional sale and purchase agreement with Wealthpro Holdings Sdn Bhd for the disposal of the 258-room hotel.

KUALA LUMPUR (Aug 18): ECM Libra Group Bhd entered into an agreement to dispose of the 11-storey Tune Hotel in George Town, Penang, together with adjoining freehold land, for a total cash consideration of RM51.89 millioon Aug 15 (Friday).

In a bourse filing on Friday, the group expected to generate a gain of RM24.72 million for the group.

The company disclosed that its wholly owned subsidiary, ECML Hotels Sdn Bhd, executed a conditional sale and purchase agreement with Wealthpro Holdings Sdn Bhd for the disposal of the 258-room hotel.

The property occupies 2,053 sq m of land and was originally acquired in 2018 for RM21 million. As at Dec 31, 2024, the asset carried a book value of RM22.87 million, while an independent valuer has assessed its current market value at RM51.5 million.

Proceeds from the transaction will be allocated towards funding new projects (RM32.29 million), partial repayment of borrowings (RM10 million), working capital requirements (RM5.3 million), and estimated expenses related to the disposal (RM4.3 million).

The divestment forms part of the group’s ongoing strategy to unlock investment value while further strengthening its financial position.

The proposed transaction is subject to shareholder approval and is expected to be completed by the first quarter of 2026.

For context, ECM Libra started as a boutique financial services group in 2002 before its principal activities were diversified to hotel ownership and management in 2017. The group operates as a listed hospitality holding company that provides, through its subsidiaries, the requisite resources, expertise, and strategic guidance to build and grow businesses from the ground up.

At the time of writing on Monday, ECM’s share price remained unchanged at 18.5 sen valuing the group at RM92 million.

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