Friday 29 Mar 2024
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KUALA LUMPUR (Dec 2): Benalec Holdings Bhd is disposing nine pieces of reclaimed land in Pekan Klebang, Melaka, for RM107.2 million, which will enable it to repay outstanding debts, as well as finance ongoing and future reclamation projects.

In a filing with Bursa Malaysia today, the group said its wholly- owned unit Sentosacove Development Sdn Bhd (SDSB), had entered into a sale and purchase agreement with Jadex Land Sdn Bhd (JLSB) and its subsidiary Quality Paradise Sdn Bhd (QPSB) to dispose of the lands.

Six of those tracts measure about 39.27 acres and will be sold to QPSB for RM71.8 million.

“Benalec is expected to realise an estimated gain of RM18.82 million (after taxation), which translates into a gain of RM0.02 per share against the estimated net book value of approximately RM46.75 million,” said Benalec on the sale of the six.

The remaining three pieces of land measuring 19.36 acres will be sold to JLSB for RM35.4 million. The group expects an estimated gain of RM9.28 million or 1 sen per share from the disposal, against the land’s net book value of RM23.05 million.

“The land disposal is in line with the Benalec group’s business model to dispose the reclaimed land received from reclamation projects in Melaka, which involve settlement in kind for cash in a timely manner either through disposals or joint ventures,” said Benalec.

It said it will be able to repay its outstanding debts, as well as finance ongoing and future reclamation projects via the proceeds from the disposal.

The group expects to complete the disposal by the end of the fourth quarter of 2015.

Benalec closed the day 2.5 sen or 3.76% higher at 69 sen, for a market capitalisation of RM539.3 million.

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