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Masterskill aborts property disposal to major shareholder

KUALA LUMPUR (Dec 16): Masterskill Education Group Bhd has aborted its plan to dispose of its campuses in Cheras, Kuching, Kota Kinabalu and Johor, after its board was unable to mutually agree on a revised sale consideration, based on the property valuation done by independent valuer Cheston International (KL) Sdn Bhd.

Cheston had ascribed an indicative market value of RM110.4 million for the properties, substantially higher than the initial indicative sale consideration of RM75 million offered by the group’s major shareholder, Siva Kumar M Jeyapalan.

In a Bursa Malaysia filing this evening, the board said it would seek alternatives to implementing its asset light strategy and raising funds for the company.

Siva Kumar first proposed to make an offer for the four campuses on Nov 6, and then lease them back to the group for 10 years, with the option to extend for another five years.

Masterskill shares shed 0.5 sen or 0.8% to close at 59.5 sen, with a market capitalisation of RM223.77 million.

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