Talam settles RM241.3m owing to Menteri Besar Selangor Inc.

KUALA LUMPUR: Talam Corp Bhd is settling the RM241.36 million owing to Menteri Besar Selangor (Inc) by disposal of properties and cash payment and it will result in the company recording losses of up to RM21.16 million.

It said on Monday, March 15 the cash payment was RM12.67 million while unencumbered properties were valued at RM44.72 million and encumbered properties at RM183.97 million.

The settlement agreement was entered into on Saturday. Trading was suspended since 9am on Monday and will resume at 2.30pm.

"The settlement will reduce the group’s net assets from 20.25 sen per share (based on audited financial statements as at Jan 31, 2009 and ordinary share capital  adjusted to par value of 20 sen each) to 19.15 sen per share as a result of the losses incurred on the disposal of the properties," it said.

Talam said the settlement, however will reduce group’s  gearing ratio from 1.92 to 1.77.

"The settlement will result in losses amounting to RM21.16 million, thereby reducing the group’s earning per share by 1.10 sen per share," it said.