IJM Land disposes unit for RM66m

IJM Land Bhd is selling its 100% stake in property-based Delta Awana Sdn Bhd to Bermuda-incorporated fund ADF Tiger III Ltd for RM66.26 million cash.

The company had signed a sale and purchase agreement yesterday to dispose of 250,000 shares of RM1 each, or 100% equity interest, in Delta Awana to ADF Tiger.

IJM Land said Delta Awana, which is a property investment company, owned two parcels of leasehold land in Melaka measuring 118,827 sq metres in total, together with a newly completed shopping mall Aeon Bandaraya Melaka.

The company said the net book value of the property was RM319.4 million as at March 31, 2010, adding that no valuation was carried out on the property for the proposed disposal.
“The proceeds from the proposed disposal will be used for working capital of the group,” said IJM Land, noting that the proposed disposal was expected to be completed by the last quarter of 2010.

The company said the rationale of the proposed disposal was to enable the group to unlock the value of its investment and that the expected gain from disposal would be about RM64 million.

IJM Land’s share price yesterday shed four sen to close at RM2.16 sen with 1.43 million shares traded.







Written by Kay 
The Edge Malaysia