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LBS Bina to dispose of 20% stake in JVcos for RM93m

KUALA LUMPUR: LBS Bina Group Bhd, via two of its Hong Kong-based units, have signed a letter of intent (LOI) with Zhuhai Special Economic Zone Long Yi Enterprises Company to dispose of their respective 10% stakes in two joint-venture (JV) companies for 200 million yuan (RM93.3 million). 

Under the terms of the LOI, LBS Bina units Lamdeal Consolidated Development Ltd (LCDL) and Lamdeal Golf & Country Club Limited (LGCCL) will dispose of their stakes in Zhuhai International Circuit Consolidated Development Limited (ZIC Property) and Zhuhai International Circuit Golf & Country Club Limited (ZIC Golf), it said in a Bursa filing on Friday, Oct 22.

The price was arrived at following negotiations between all parties.

ZIC Properties and ZIC Golf were formed in 1992 on a JV basis with Long Yi to operate a 36-hole golf course known as Lakewood Golf & Country Club in Zhuhai, and the property development project on the 197-acre lands located in and around the Lakewood Golf Club.

Following the completion of the proposed disposal, LCDL and LGCCL would respectively be entitled to a profit sharing of 50% in ZIC Property and ZIC Golf.

The land premium for the parcels to be developed under ZIC Property will be calculated based on the prevailing rate fixed by the Land Office of Zhuhai City, where the portion calculated based on 270 yuan psm will be borne by Long Yi and the remainder captured as development cost by ZIC Property.

LBS Bina said it was disposing the stakes because it was more beneficial to the group to unlock the value of its 10% investment in these two companies and use the proceeds as working capital.

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