SEGi to sell land in Sarawak

KUALA LUMPUR: SEG International Bhd (SEGi) will sell two pieces of land in Kuching, Sarawak, to Kenbest Sdn Bhd for cash consideration of RM10.5 million.

In a filing to Bursa Malaysia on Oct 19, the company said the proposed disposal is being undertaken in view of the fair price offered by Kenbest.

“The proposed disposal will enable the group to unlock capital resources from being tied up in long-term assets and allow the group to better focus on the existing campuses,” it said. 

Barring unforeseen circumstances, the exercise is expected to be completed by end-2009 or 1Q2010.

The land was acquired on Oct 19, 2004 for a total consideration of RM4.8 million to build SEGi’s branch campus in Kuching.

The net book value of the land, together with the additional costs incurred on the land as at Aug 31, 2009 was RM8 million.

The net proceeds after deducting the estimated and other ancillary expenses relating to the proposed disposal (estimated at approximately RM2 million) will be used for the repayment of bank borrowings of approximately RM3.2 million, with the balance being used for working capital purposes.

The repayment of the bank borrowings with the proceeds will reduce the group’s gearing to 0.17 times from 0.19 times based on the audited consolidated financial statements for the financial year ended Dec 31, 2008.

The proposed disposal is not expected to result in the company becoming a Cash Company or a PN17 Company.

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