Masterskill disposes of land for RM59m

KUALA LUMPUR: Masterskill Education Group Bhd (MEGB) is set to gain RM14.3 million from the sale of 10 parcels of contiguous vacant freehold land to Layaran Pintas Sdn Bhd (LPSB) for a total RM59 million.

In a filing with Bursa Malaysia yesterday, the group said the 10 parcels are located in Kajang, Selangor, and were originally acquired by MEGB's wholly owned subsidiary Masterskill (M) Sdn Bhd (MMSB) in 2010 for a total RM33.2 million.

"The disposal consideration was arrived after negotiations between MMSB and LPSB, taking into consideration the location of the property based on the prevailing market value of the surrounding properties. No independent valuation was carried out for the purpose of the disposal," said the group in its filing.

"The proposed disposal is in line with MEGB's group strategy to divest its non-core assets," it added.

MEGB will recognise a gain of RM14.3 million, after netting off incidental costs of RM10.2 million, from the disposal based on the properties' net book value of RM34.4 million.

Of the RM58.9 million arising from the sale, about RM3 million of the proceeds from the sale will go towards the incidental cost of the disposal and property tax, while the remaining RM55.9 million will be allocated as working capital.

The disposal is expected to be completed by the fourth quarter of this year, and is to be satisfied by cash. It will also raise the group's net assets to RM1.07 per share and reduce its net gearing.

The 10 parcels are thought to have been originally slated to be used for the education group's flagship Bandar Baru Bangi campus.  — by Shalini Kumar

This article first appeared in The Edge Financial Daily, on July 3, 2013.

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