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Amcorp Properties sells London firm for RM134m

KUALA LUMPUR: Amcorp Properties Bhd is selling London-based real estate investment firm for RM134 million — a divestment that would put the company in net cash position.

In an announcement to Bursa Malaysia, Amcorp said its wholly owned unit Walleng Enterprises Sdn Bhd together with Golden Spectre Ltd had signed a S&P agreement with Brittel Fund Trustees Ltd to dispose of the entire stake in Westlink for a net consideration of RM45.51 million.

Walleng and Golden Spectre own 60% and 40% respectively in Westlink, a property investment firm that owns a commercial property in London.

Based on the sale consideration, Amcorp would be able to realise the capital appreciation of the property and make an immediate gain on disposal of some £15.1 million (RM74.1 million).

The transaction will boost Amcorp's earnings per share by 12.5 sen for FY12 ending March 31. The deal will also boost the company's net assets per share by a similar quantum to RM1.13 a share.

Assuming that the sales proceeds will be used to repay the entire borrowings of the group, Amcorp Properties said it expects to be in net cash position after the disposal. The transaction is expected to be finalised in the third quarter of 2011.

Amcorp shares added one sen to 59 sen on Monday, June 20.

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