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KUALA LUMPUR (May 6): MWE Holdings Bhd intends to sell nine parcels of leasehold lands and its entire stake in MWE Golf & Country Club Bhd to Newfields Land Sdn Bhd’s wholly-owned subsidiaries for RM55 million and RM1 respectively.
“The proposed disposals are in line with MWE Group’s strategy to dispose of noncore businesses and loss-making companies. The cash proceeds arising from the disposal of the lands will be used to pare down the group’s bank borrowings and for working capital requirements,” MWE said in a filing with Bursa Malaysia yesterday.
MWE said it had entered into two separate sale purchase agreements. The first was by its indirect wholly-owned unit Melati Mewah Sdn Bhd that will sell the 48.2ha lands in Mukim Raja, Petaling Jaya, Selangor, to Pristine Primawera Sdn Bhd.
The disposal consideration of the lands that are sold on an “as is where is” basis was arrived at after taking into consideration the lands’ net book value based on MWE’s latest financial statements of RM14.2 million as at March 31, 2015.
In the second deal, MWE plans to dispose of its entire shareholding of 25 million shares in MWE Golf & Country Club to Saujana Setara Sdn Bhd, an investment holding company.
“The proposed disposals are expected to be completed in the third quarter of [the] financial year ending March 31, 2017,” it said.
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This article first appeared in The Edge Financial Daily, on May 6, 2016. Subscribe to The Edge Financial Daily here.
