KUALA LUMPUR (April 20): See Hup Consolidated Bhd's wholly-owned unit See Hup Transport Sdn Bhd has entered into a conditional sale and purchase agreement with Loh Gim Ean Holdings Sdn Bhd (LGE) for the proposed disposal of three adjoining lots of development land in Seberang Prai, Penang for RM17.6 million cash.
The three plots of freehold land measure a total of 146,143 square feet.
"The land is presently being used as a lorry depot and truck servicing area. With the proposed disposal, See Hup Transport will move its lorry depot and truck servicing to a new depot and service area," said See Hup in a Bursa Malaysia filing this evening.
The disposal consideration of RM17.56 million represents a premium of about 46.33% to the market value of the land of RM12 million — based on the valuation report dated April 10, 2015 by Messrs Knight Frank Malaysia Sdn Bhd.
The proposed disposal is expected to result in a gain on disposal of RM12.22 million, based on the audited net book value of the land of about RM5.08 million as at March 31, 2014.
Meanwhile, LGE entered into a sale and purchase agreement with T.T. Trading Sdn Bhd to purchase two lots of land (TT Trading land) measuring 72,113 square feet for RM10.8 million cash.
"The proposed disposal will enable the See Hup Group to unlock its capital resources from being tied up in long term assets. The land which is presently being used as lorry depot and truck servicing by the See Hup Group, is land-locked and access is only available through the TT Trading land with the proposed disposal," said See Hup in its filing.
See Hup's share price closed unchanged at RM1.10 today, for a market capitalisation of RM56.25 million.
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