LBS Bina gets RM112.9m from first tranche of payment

KUALA LUMPUR (Dec 30): Property developer LBS Bina Group Bhd has received the first tranche of deferred cash payments amounting to HK$250 million (RM112.9 million) for the disposal of its stake in Lamdeal Consolidated Development Ltd (Lamdeal Development) and Lamdeal Golf & Country Club Ltd (Lamdeal Golf).

In a filing with Bursa Malaysia today, LBS Bina said the payment received is the first out of four tranches of a promissory note of HK$850 million (RM383.9 million), which is due on Dec 31.

The group had earlier announced that it plans to use 48% of the first payment to reduce bank borrowings, and 32% to pay special dividend to its shareholders. The balance will be used to cover payments of its payables and operating expenses.

On April 10, 2013, LBS Bina’s wholly-owned unit, Dragon Hill Corp Ltd, signed a conditional sale and purchase agreement with Jiuzhou Tourism Property Co Ltd for the sale of the entire interest in Lamdeal Development and Lamdeal Golf for HK$1.65 billion (RM745.2 million).

The disposal consideration comprised HK$500 million cash, approximately 22.5 million new shares of Hong Kong-listed Zhuhai Holdings Investment Group Ltd and deferred cash payment from the promissory note of HK$850 million, payable from Dec 31, 2014 to Dec 31, 2017.

LBS Bina shares closed 1 sen or 0.63% lower at RM1.59 today, bringing its market capitalisation to RM838.79 million.