British American Tobacco to dispose of property in Sabah

PETALING JAYA: British American Tobacco (Malaysia) Bhd (BAT) has agreed to sell an 1.99-acre industrial plot in Keningau, Sabah, to Wahid Adbul Hamid for RM1.95 million, according to a Bursa Malaysia announcement on Nov 24.

The sale also includes the buildings already on the land, which consist of a 1-storey leaf store with an attached 2-storey office; a 1-storey tobacco store; an agriculture fertiliser store; and a 2-storey bungalow house, states the announcement.

The rationale for the sale was that the property was not in use and has remained unoccupied since Jan 1, 2009. The sale will not affect the issued and paid-up share capital of BAT and the shareholdings of the substantial shareholders in BAT.

Based on the audited financial statements for the year ended Dec 31,2008, the sale will also have no material impact on the earnings per share, net assets per share and gearing of BAT. Moreover, the sale of the land will not result in any material gains or loss to the company.

Barring any delays, the sale should be completed in 4Q2009.