The Sun Daily
31st October, 2017

PETALING JAYA : Benalec Holdings Bhd’s units Sentosacove Development Sdn Bhd, Oceanview Realty Sdn Bhd and Strategic Cove Sdn Bhd have entered into a sale and purchase agreement with Titanium Hallmark Sdn Bhd to dispose of land measuring 216,427 sq m in Pekan Klebang, Malacca for RM100.17 million.

Sentosacove Development, Oceanview Realty and Strategic Cove are wholly-owned subsidiaries of Benalec Sdn Bhd, which in turn is a wholly-owned subsidiary of the group.

In a filing with Bursa Malaysia today, the group said the total disposal consideration was arrived at after negotiations on a “willing buyer and willing seller” basis, taking into consideration the land’s market value and potential future earnings from development of the area.

Proceeds from the disposal will be used to finance the group’s on-going reclamation projects and to meet its working capital requirements, which are expected to be utilised within 12 months from completion of the land disposal.

“The disposal is in the ordinary course of business of Benalec. The disposal provides an avenue for Benalec to monetise and crystallise the value of its landbank; while at the same time, improve the cash flow of the company,” it added.

The group said the disposal is expected to realise a net gain of RM24.7 million representing earnings per share of approximately RM0.03.

Benalec said its net assets per share will increase from RM0.77 to RM0.80 (after accounting for the gain on the disposal) based on its total issued share capital of 799 million ordinary shares (excluding 12.7 million treasury shares) as at June 30, 2017.

Nonetheless, Benalec said the disposal will not have any effect on its gearing and is not expected to result in the group becoming a cash company or PN17 company. The group closed one sen up to 43 sen today with a total of 4.15 million shares traded.
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