Ivory to reduce net gearing with land disposal

KUALA LUMPUR: Ivory Properties Group Bhd expects to reduce its net gearing ratio with gains from the disposal of four parcels of land to Aspen Vision Development Sdn Bhd.

Ivory has proposed to dispose of the land for a total cash consideration of RM35 million, which in turn, will enhance the group’s cash flow by RM31 million.

The 4.036ha land parcels held by its investment company, TTG Holdings Sdn Bhd, are situated in Tanjung Tokong, Penang.

In an announcement to Bursa Malaysia yesterday, the group said it would gain RM6.7 million or 1.51 sen per share from the sale. The proceeds from the disposal will be used for repayment of bank borrowings and working capital. The acquisition will be completed in the first half of next year.  

As at end-2012, Ivory had total borrowings of RM287.9 million, cash balances of RM58 million and shareholders’ funds of RM364 million, giving it a net gearing of 0.63 times.

This article first appeared in The Edge Financial Daily, on October 25, 2013.

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