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Nilai Resources gets offer to buy land from major shareholder

KUALA LUMPUR (Nov 17): Nilai Resources Group Bhd has received an offer to buy LK Prisma Sdn Bhd, which owns a 418.2-acre piece of land, forming part of the Seremban Utara township development, for RM118.4 million.

The related-party offer was made by Lapangan Kota Sdn Bhd, a company owned by Datuk Dr Gan Kong Seng, who is Nilai Resources executive chairman and major shareholder, with a 54.93% stake.

The consideration was based RM6.50 per square foot (psf) for the land, which has been approved for residential, commercial, institution or industry use.

The sale of LK Prisma is conditional on approval being obtained from Nilai Resources' board of directors and shareholders.

Nilai Resources saw its net loss widen to RM1.06 million in 1HFY11 from RM426,000 a year ago, while revenue fell 7% to RM67.01 million from RM72.2 million.

For its second quarter ended June 30, its net loss shrank to RM954,000 from RM1.98 million a year ago while revenue improved 21% to RM35.3 million.

The company is involved in property development, hospitality, education, landscaping and quarrying.

Its property development segment contributed 35% of its 1HFY11 revenue and held RM409.9 million in assets as of June 30.

As at end-June, it held RM21.2 million in cash and had RM69.9 million of borrowings.

Shares in the company rose to a more than 10-year high when it reached RM1.80 on Nov 3.

It ended 12 sen lower to RM1.38 on Wednesday.

The stock has gained some 56.8% year-to-date, but is trading below its book value of RM3.51.

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