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Mulpha to sell unit at RM21m loss

KUALA LUMPUR (Sept 11): Mulpha International Bhd will sell its wholly-owned subsidiary Bestari Sepang Sdn Bhd at a loss of RM21 million.

In a statement to Bursa Malaysia on Monday, Mulpha said following the sale to Mulia Holdings Sdn Bhd for RM1 million cash, the group would recognise a net loss of RM21 million.

Bestari Sepang through its wholly-owned subsidiary Spanstead Sdn Bhd holds a 65% equity interest in Seri Ehsan (Sepang) Sdn Bhd, the registered owner of the land covering about 939.04 acres (Sepang Land) in Mukim Tanjung 12 in Kuala Langat.

Mulpha, whose focus is on property development and investment, infrastructure and civil construction, said the group has discontinued the development and sale of residential and/or commercial units on Sepang Land, which is in line with its strategic decision to focus on upmarket projects.

"In view of this, Sepang Land has become a non-core asset to Mulpha and as Mulpha does not intend to recommence any development in the near future, it has decided to dispose of the Bestari Sepang group in line with its ongoing strategy to dispose of its non-core assets and to redeploy the funds to developing its other property development projects and/or ongoing share buyback programme," said the group.

According to Mulpha, as part of the transaction, Mulia will pay a settlement sum of RM104 million on or before Dec 15, 2012 as the full and final settlement of the advances that Mulpha had made to Bestari Sepang and its subsidiaries.

This story appeared in The Edge Financial Daily on Sept 11, 2012.

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