Our website is made possible by displaying online advertisements to our visitors.
Please consider supporting us by disabling your ad blocker.

ECOHLDS

0.200

-0.02 (-9.1%)

DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP SHARE CAPITAL IN M-MODE MOBILE SDN. BHD. (MMM), MOBILE MULITIMEDIA SDN. BHD. AND TAMEKO SDN. BHD. (TSB) FOR A TOTAL CASH CONSIDERATION OF RM12,000,000 (DISPOSAL)

ECOBUILT HOLDINGS BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-31072019-00001
Subject DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP SHARE CAPITAL IN M-MODE MOBILE SDN. BHD. (MMM), MOBILE MULITIMEDIA SDN. BHD. AND TAMEKO SDN. BHD. (TSB) FOR A TOTAL CASH CONSIDERATION OF RM12,000,000 (DISPOSAL)
Description
REPLY TO THE QUERY FROM BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES") DATED 1 AUGUST 2019 (IQL-31072019-00001)
Query Letter Contents

We refer to your Company’s announcement dated 29 July 2019 in respect of the aforesaid matter.
 

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

 

1.         The respective age of the MMM Properties and TSB Property.

2.         Whether any valuation was carried out on MMM Properties and TSB Property respectively. If so, the respective name of the independent registered valuer, date and method of valuation and quantification of the market value, and the time and place where the valuation(s) report may be inspected.

3.         The net book values of the MMM Properties and TSB Property based on the latest audited financial statements of each company.

4.         Examples of working capital for which the Disposal proceeds will be utilized.

5.         The timeframe for full utilisation of the Disposal proceeds.

6.         The brief details of the existing projects and future projects for which the Disposal proceeds will be utilized.

7.         The breakdown of the utilization of the Disposal proceeds between working capital, existing projects and future projects.

 

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

Yours faithfully

TAN YEW ENG
Vice President, Issuers
Listing, Regulation


TYE/NMA

 

Cc : Market Surveillance Dept., Securities Commission (via fax)

We refer to our announcement made on 29 July 2019 in relation to the Disposal (“Announcement”) and the query from Bursa Securities dated 1 August 2019 (“Query”) in relation to the Disposal. Unless otherwise defined, the definitions set out in this reply shall carry the same meanings as defined in the Announcement.

 

Further to the Announcement, the Board of Directors of ECOBUILT wishes to provide the following additional information pursuant to the Query:-

 

1. The respective age of the MMM Properties and TSB Property.

 

Reply

 

The age of the MMM Properties and TSB Property are set out below:-

 

No.

Proprietor

Title/Location

Description

Approximate age of offices

1

MMM

Geran 37731/M1B/19/307, No. Petak 307, Tingkat 19, Bangunan M1 for Lot No. 144, Seksyen 44, Bandar Kuala Lumpur, Daerah Wilayah Persekutuan. (“MMM Property 1”)

A parcel of office

25 Years

2

MMM

Geran 37731/M1B/4/126, No. Petak 126, Tingkat 4, Bangunan M1B for Lot No. 144, Seksyen 44, Bandar Kuala Lumpur, Daerah Wilayah Persekutuan.  (“MMM Property 2”)

A parcel of office

25 Years

3

TSB

Strata title GM1889/M1/4/14, Lot No. 30996, No. Bangunan M1, No. Tingkat 4, No. Petak 14, Pekan Cheras, District of Hulu Langat and State of Negeri Selangor. Parcel No. 35-3-F. (“TSB Property”)

A parcel of office

21 Years

 

 

2. Whether any valuation was carried out on MMM Properties and TSB Property respectively. If so, the respective name of the independent registered valuer, date and method of valuation and quantification of the market value, and the time and place where the valuation(s) report may be inspected.

 

Reply

 

There were no valuation was carried out on the MMM Properties and TSB Property by an independent valuer. However, internal assessment and market survey were carried out on the market values of the properties in the vicinity to the MMM Properties and TSB Property based on the references from www.brickz.my and www.propertyguru.com.my. Based on the abovementioned internal assessment and market survey, the Board is of the view that the current market value of the MMM Properties and TSB Property are approximately RM4.09 million and RM211,000, respectively.

 

 

3. The net book values of the MMM Properties and TSB Property based on the latest audited financial statements of each company.

 

Reply

 

The latest audited net book values of the MMM Properties and TSB Property are set out below:-

 

No.

Property

Audited

Net book value as at 31 May 2018

(RM’000)

1.

MMM Property 1

1,592

2.

MMM Property 2

1,071

3.

TSB Property

64

 

 

4. Examples of working capital for which the Disposal proceeds will be utilized.

 

Reply

 

The working capital for which the Disposal proceeds will be utilized for, among others, the payment of salaries and defrayment of operational and administrative expenses such as professional fees, utilities and sundry expenses.

 

 

5. The timeframe for full utilisation of the Disposal proceeds.

 

Reply

 

The Disposal proceeds is expected to be fully utilised within 24 months from receipt of payment.

 

 

6. The brief details of the existing projects and future projects for which the Disposal proceeds will be utilized.

 

Reply

 

(i) The Group intends to utilise RM5.0 million of the Disposal proceeds as working capital for its existing on-going projects comprising, among others, the pre-development costs, building structural works, infrastructure works, material costs, labour costs, professional fees and authorities’ fees.

 

The existing on-going major projects currently undertaken by the Group with an aggregate contract sum of approximately RM464.6 million, are as follows:-

 

(a) the construction works for the proposed development of 2 apartment blocks (1320 units) comprising block A-32 Storeys Apartment PPAIM (660 units), block B-34 Storeys Apartment (440 units) and affordable home (220 units), 8 Storeys podium car park, 1 unit TNB substation, 1 unit of refuse chamber and common facilities on Lot PT15250, Kampung Muhibbah, Bukit OUG, Mukim Petaling, Kuala Lumpur; and

 

(b) the construction works for the proposed 25-Storey Mixed Commercial Development (with subsidiary titles to be applied for) on TL. 017526475 at Jalan Tun Fuad Stephens, Kota Kinabalu, Sabah.

 

The above said projects is expected to be completed in year 2021.

 

(ii) The Group is sourcing for other potential construction, development and/or any other projects. The Group intends to utilise RM5.0 million of the Disposal proceeds as initial outlays and/or working capital for future construction, development and/or any other projects as and when the opportunities arise. Any surplus or shortfall to the proceeds allocated for the future projects of the Group will be adjusted against the proceeds allocated for working capital of the Group depending on their respective funding requirements.

 

 

7. The breakdown of the utilisation of the Disposal proceeds between working capital, existing projects and future projects.

 

Reply

 

The Group intends to utilise the proceeds from Disposal of RM12,000,000 in the following manner:-

 

Intended purposes

Amount

(RM’000)

Working capital

2,000

Funding of existing projects

5,000

Future projects

5,000

Total

12,000

 

Any surplus or shortfall for the amount allocated for the funding of existing projects and future construction, development and/or other projects will be adjusted against proceeds allocated for working capital of the Group depending on funding requirements.

 

 

This announcement is dated 2 August 2019.

 





Announcement Info

Company Name ECOBUILT HOLDINGS BERHAD
Stock Name ECOHLDS
Date Announced 02 Aug 2019
Category General Announcement for PLC
Reference Number GA1-02082019-00034