Zelan sells IJM shares to pay debts

KUALA LUMPUR: Zelan Bhd announced that it had on June 27 disposed of 3,692,000 shares in IJM Corp Bhd through a direct business transaction off market deal at an average price of RM5.56 per share for RM20.46 million.

IJM is principally involved in construction, property development, manufacturing and quarrying, infrastructure concessions and plantations.

The 3,692,000 ordinary shares represent 0.265% of the total issued and paid-up capital of IJM.

“The rationale for the disposal is to realise funds to repay bank borrowings,” said Zelan in its filing with Bursa Malaysia yesterday.

The original cost of its investment in the shares was approximately RM4.14 per share at group level and RM3.50 per share at company level, it added.

The gain on the disposal at group level was approximately RM5.1 million and about RM7.6 million at the company level.

This article first appeared in The Edge Financial Daily, on July 02, 2013.

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