KUALA LUMPUR (Oct 18): Selangor Dredging Bhd, a property developer, is disposing of 16 pieces of freehold land at Damansara Heights, which collectively measures 15,751 sq m, for RM71 million cash.

In a filing with Bursa Malaysia today, Selangor Dredging said its wholly-owned subsidiary SDB Damansara Sdn Bhd has entered into an agreement with Bukit Selesa Development Sdn Bhd for the disposal.

Selangor Dredging said the disposal consideration will be solely used for the repayment of intercompany borrowings.

"The disposal enables Selangor Dredging to unlock its capital from being tied up in the said lands and to translate it into cash resources for working capital purpose and also to improve the cash flow position of the group," it said.

The group also noted that the disposal is expected to result in a gain on disposal of RM93,901.

The transaction is not subject to shareholders' approval, and Selangor Dredging expects to complete the disposal by the third quarter of 2022.

This is because Bukit Selesa intends to apply to relevant authorities for approval to amend or modify the existing development order (DO) of these lands.

Bukit Selesa is to obtain the amended DO from authorities within 24 months before the agreement entered into by both parties becomes unconditional.

Selangor Dredging closed unchanged at 86 sen today, giving it a market capitalisation of RM366.47 million. — theedgemarkets.com

Want to know the price trends of a development? Click here.

SHARE
SPONSORED CONTENT
SJCC East One—a landmark address in the heart of Subang Jaya city centre

Nestled within the city’s vibrant pulse, SJCC East One keeps you perpetually connected to a world of convenience that includes shopping, recreation, education and healthcare.

read more