Talam Corp to dispose of land to settle debt

KUALA LUMPUR: Talam Corp Bhd announced on Bursa Malaysia on April 12 that it proposes to dispose of land, subject to shareholder approval, to settle its balance of debt with Menteri Besar Selangor Incorporated (MBI) amounting to about RM150.62 million.

The land comprises of five lots located in Bukit Beruntung 2. Two lots are in Mukim Serendah, Daerah Ulu Selangor, Selangor and are freehold, while the rest are in Mukim Ulu Yam, also in Selangor, with two lots being freehold and one lot measuring 20 acres being leasehold, expiring Feb 2, 2061.

The total land area of the five lots is 1,322.44 acres and is described as “converted development land”, states the report. The lots are registered under Europlus Corp Sdn Bhd, a wholly-owned subsidiary of Talam Corp.

The price of the land amount to about RM345.63 million, based on RM4.70 psf for the development land and RM1.30 psf for contribution towards costs and expenses of the main infrastructure. The original cost of investment of the lots is close to RM342 million.

The consideration price will be utilised to settle the RM150.62 million debt; RM164.5 million is to be settled by MBI to Talam Corp’s financiers to release the encumbrances on the land; and the excess of RM30.5 million will be used to set off the costs and expenses rightfully payable by Talam Corp to ensure transfer and registration of the land to MBI or its nominees.

Originally owing close to RM392 million, Talam Corp has settled RM241.37 million so far as announced on Bursa Malaysia on March 12.