LBS Bina Disposes All Equity Interests in Zhuhai Holdings for RM86 million
LBS Bina Group Berhad (LBS Bina) recently announced that its indirect wholly-owned subsidiary, Dragon Hill Corporation Ltd (Dragon Hill), has disposed all 9.7% of it’s equity stake in Zhuhai Holdings Investment Group Ltd, a Hong Kong-based investment holding company, for HK$164.5 million (RM86.05 million).
In the filing to Bursa Malaysia, LBS says the 9.7% stake in the Company amounts to 138,929,909 ordinary shares (sale shares), formed part of the consideration received in November 2013 in relation to the disposal of the Company’s investment in Zhuhai, China, comprising a 36-hole golf course and a property development project in Zhuhai in 2013.
“The gross proceeds from the disposal of HK$164.5 million – RM86.4 million representing 6.4% of the Company’s latest audited consolidated net assets – after deducting relevant expenses for the disposal, will be utilised for repayment of bank borrowings and working capital purposes,” it said in the filing.
The company adds, “The disposal provides an opportunity for the company to realise its non-core capital investment to better relocate its capital resources”.
The filing further stated that the disposal was carried out in two tranches, the first tranche comprising 60 million shares were sold on the open market of Hong Kong Stock Exchange on 5 December 2019 at HK$1.15 per share while the second comprises the remaining 78.93 million shares, which was sold today at HK$1.21 per share.
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