KUALA LUMPUR: PN17 outfit Pan Malaysian Industries Bhd (PMI) may be looking to sell its last property — a vacant piece of land situated in Jalan Mayang, near KLCC, to sister company Malayan United Industries Bhd (MUI) for some RM32 million cash, said a source.
According to PMI’s 2013 annual report, the freehold land measures 1,478 sq metres and was carried at a net book value of RM23.86 million. At RM32 million, the price translates into RM2,011 per square foot.
“The land has good development potential as it is located in the golden triangle,” she told The Edge Financial Daily, adding that MUI is still finalising the development of the land.
PMI is left without a business and its only property asset left is the Jalan Mayang land, after it sold the 15-storey Menara PMI in Jalan Changkat Ceylon to third party Admiral Gateway Sdn Bhd for RM60 million in February this year.
The company had been deriving rental income from Menara PMI, apart from its interests in MUI.
MUI and PMI are controlled by Tan Sri Khoo Kay Peng, who owns a 47.67% stake in the former and 68.27% stake in the latter. PMI owns a 13.23% stake in MUI.
It is worth noting that PMI acquired the Jalan Mayang land in 2007 from MUI’s subsidiary, MUI Properties Bhd, for RM9.3 million cash. The company also in 2007 acquired Menara PMI from sister company Pan Malaysia Holdings Bhd for RM39 million.
Recently on May 30, PMI submitted an application to Bursa Malaysia to seek an extension of time to submit its regularisation plan after being slapped with PN17 by the authority in May last year. It said in an announcement dated June 2 that it was still awaiting the decision from Bursa with regard to the application.
PMI has been bleeding for five consecutive quarters with hefty borrowings of RM86.82 million as at March 31 this year.
For its financial year ended March 31, the firm’s net losses widened to RM34.53 million from net loss of RM24.97 million. Revenue came in 15.88% lower at RM3.62 million from RM4.3 million.
In a filing with Bursa on May 30, PMI explained that the higher loss was due to the impairment of the carrying value of investment in an associate to market value. The associate mentioned could be MUI.
PMI said in the same announcement that it expected the business environment in the financial year ending Mar 31, 2015 to remain challenging. “The associate will continue to assess potential investment opportunities to enhance its shareholders value.”
This article first appeared in The Edge Financial Daily, on June 9, 2014.
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