LBS Bina Group sells entire stake in
China Business
LBS Bina Group Bhd has obtained its
shareholders’ approval in its Emergency General Meeting (EGM) on Friday for the proposed disposal of its
entire stake in Lakewood Golf Club and Zhuhai Development Land in China for a
total consideration of HK$1.65 billion (RM681.81 million).
Its Managing Director Lim
Hock San said the purchaser, Zhuhai Holdings Investment Group Ltd, has also
announced that its shareholders have also approved the resolution on its
proposed acquisition at a special general meeting held recently.
Lim said with the
approvals from the relevant authorities and shareholders at the EGM, both LBS
and Zhuhai Holdings are set to complete the sale and purchase (S&P)
agreement soon.
Under the proposed mode
of settlement, LBS will be receiving cash of HK$500 million (RM204.09 million),
225.56 million new Zhuhai Holdings listed shares issued at HK$1.33 per share
(54 sen) worth HK$300 million (RM122.45 million) and promissory notes for the
sum of HK$850 million (RM356.94 million).
“Once we become a substantial
shareholder in Zhuhai Holdings, LBS will indirectly benefit from the Zhuhai
development project through potential appreciation of Zhuhai Holdings’ share
value and any future dividend payments.
“With all these, I am
very confident that it will enable our group to retain a healthy balance sheet
and thus maintain its strong financial track record,” he told reporters after
the EGM in Kuala Lumpur on Friday.
In line with the terms of
the agreement, LBS will then be a substantial shareholder of Zhuhai Holdings
and will be entitled to appoint its Executive Director (ED) Lim Hock Guan as a
non-ED on Zhuhai Holdings board. Pon completion, LBS is set to reap a hefty pro
forma gain of RM309 million for the financial year ending 2013, Lim said.
He added that the company
has yet to decide on the utilisation of the HK$500 million (RM204.09 million)
of cash proceeds, claiming that some of them will go for settlement of bank
borrowings, other re-investment in the future or dividends to its shareholders.
On another related
development, Integrated Logistics Bhd (ILB) had in June disposed its entire
stake in two of its subsidiaries in China.
The proposed transaction
was done through ILB’s indirect 70 percent subsidiary Integrated Logistics (HK)
Ltd selling SH Logistics (Shenzhen II) Ltd and Integrated Logistics Henan (HK)
Ltd for 998 million Yuan (RM519.79 million) to Winfair International Holdings
Ltd, a wholly-owned subsidiary company of CJH Investment Co Ltd.
CREATED BY TEAM PGC
PROGLOBAL CORP
Proglobalcorp.wordpress.com
Email:proglobalcorp@gmail.com
No comments:
Post a Comment