Glomac to sell Selangor land to PR1MA for RM145.59 mil

KUALA LUMPUR (Oct 13): Glomac Bhd plans to dispose of a piece of freehold land measuring about 16.9ha in Ulu Langat, Selangor, to Perbadanan PR1MA Malaysia (PR1MA) for RM145.59 million cash.

The disposal is expected to bring Glomac an estimated net gain of about RM83.6 million or 12 sen per share, according to the group’s filing with Bursa Malaysia yesterday.

Glomac’s wholly-owned subsidiary Glomac Maju Sdn Bhd (GMSB) entered into a sale and purchase agreement with PR1MA for the disposal last Friday, which it said would allow GMSB to unlock the potential value of its land bank, generate income and increase opportunities for immediate and/or future acquisitions of more strategic landbank.

The land, bought by Glomac in 2004, originally cost it RM18.04 million. Its net book value is RM35.53 million.

The deal, not subject to shareholders’ approval, is expected to be completed on March 31, 2016.

Proceeds from the disposal are expected to be utilised for future acquisitions of landbank, and to finance payment of bank borrowings, working capital and land-related expenses of GMSB.

Glomac closed unchanged at 89.5 sen yesterday, with a market capitalisation of RM649.72 million.

This article first appeared in The Edge Financial Daily, on Oct 13, 2015.