SENDAI

0.520

-0.035 (-6.3%)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS DISPOSAL OF TWO (2) PARCELS OF FREEHOLD LAND IN MUKIM SUNGAI BULOH

EVERSENDAI CORPORATION BERHAD

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description
DISPOSAL OF TWO (2) PARCELS OF FREEHOLD LAND IN MUKIM SUNGAI BULOH

EVERSENDAI CORPORATION BERHAD (“ECB” OR “COMPANY”)

DISPOSAL OF TWO (2) PARCELS OF FREEHOLD LAND IN MUKIM SUNGAI BULOH

 

 

1.     INTRODUCTION

 

The Board of Directors of ECB wishes to announce that ECB’s wholly owned subsidiary, ECB PROPERTIES SDN. BHD. [Registration No.: 201301013422 (1043260-D)] (“ECBPSB”), had on 5 January 2024 entered into a Sale and Purchase Agreement with PELANGI TULUS SDN. BHD. [Registration No: 202301006009 (1499928-T)] (“PTSB”) for the proposed sale of its Two (2) parcels of freehold land held under Geran 111868, Lot 67331 and Geran 111869, Lot 67332, both of Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor (“the Property”) for a total cash consideration of Ringgit Malaysia Sixty-Three Million (RM63,000,000.00) only (the “Disposal”).

 

2.     INFORMATION OF THE PROPERTY

 

Following is the detailed descriptions of the Property:

  

Description of Property

:

Two (2) parcels of freehold land held under Geran 111868, Lot 67331 and Geran 111869, Lot 67332, both of Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor

 

Title Nos.

:

  1. Geran 111868, Lot No. 67331, Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor; and
  2. Geran 111869, Lot No. 67332, Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor

 

Registered owner

:

ECBPSB

 

Land area

 

1) Lot 67331 - Approximately 4088 square metres.

2) Lot 67332 - Approximately 4065 square metres

 

Land status

 

Freehold

 

Existing use

 

Vacant lots

 

Original cost of investment &

date

 

RM61,290,000.00 (Audited Financial Statements as at 31.12.2022)

Age of building

 

Empty lots for 10 years

 

Encumbrances

 

1st party charge to Pacific Trustees Berhad

 

 

 

 

 

 

 

 

 

 

3.     INFORMATION ON PURCHASER

 

PTSB is a company incorporated in Malaysia having its address at 6-2-3A, Sinaran TTDI Shop Office, Jalan Tun Mohd Faud 3, Taman Tun Dr Ismail, 60000 Kuala Lumpur, W.P. Kuala Lumpur.

 

 

4.     RATIONALE FOR THE DISPOSAL

 

The Property has been vacant since 2013. The proposed disposal is to enable the Company to monetize the underutilized assets whereby the proceeds will be utilised towards payment of bank borrowing.

 

5.     BASIS OF DETERMINING OF THE CONSIDERATION

 

The price was determined based on the best price offered by the interested buyers and was agreed after taking into consideration the NBV of the Property as at 31 December 2022 of RM61,290,000.00.

 

The Board is of the opinion that the Disposal Consideration is justifiable considering the Property has been vacant for 10 years since June 2013.

 

6.     FINANCIAL EFFECT OF THE DISPOSAL

 

6.1    Earnings

 

The Disposal has no material effect on the earnings of ECB for the financial year ending 31 December 2023.

 

6.2    Net Assets

 

The Disposal has no material effect on the Net Assets of ECB for the financial year ending 31 December 2023.

 

 

6.3  Gearing, Share Capital and Substantial Shareholder’s shareholdings

 

The proceeds from the disposal will be fully utilised towards repayment of outstanding banking facility. Therefore it will improve the Company’s gearing ratio by 6.18% from 3.61 to 3.39 based on proforma balance sheet as at 30 September 2023.

 

There is no effect on the share capital and the substantial shareholders’ direct and/or indirect shareholdings of the Company.

 

 

7.     PROPOSED UTILISATION OF PROCEEDS

 

The gross proceeds of RM63,000,000 arising from the Proposed Disposal of Property shall be utilised in the manner as set out below:-

 

 

Proposed utilisation

Expected utilisation time frame

 

RM

Repayment to bank, agent fees, RPGT, solicitors’ fees

Immediate

63,000,000

Total

 

63,000,000

 

 

8.     DIRECTORS AND MAJOR SHAREHOLDERS INTEREST

 

None of the Directors, or major shareholders of the Company and/or persons connected with them have any direct or indirect interest in the Disposal.

 

9.     THE HIGHEST PERCENTAGE RATIO

 

The highest percentage ratio applicable to the Proposed Disposal of  Property as per Paragraph 10.02(g), Chapter 10 of the Main Market Listing Requirements of Bursa Securities, based on the latest audited consolidated financial statements of ECB for the financial year ended 31 December 2022 is the transaction value of the Property compared with the Net Assets of ECB which amounts to approximately 21.4%.

 

10.   APPROVALS REQUIRED

 

The Disposal is not subject to the approval of the shareholders.

 

11.   DIRECTORS’ STATEMENT

 

The Board of Directors is of the opinion that the Disposal is in the best interest of the Company.

 

 

This announcement is dated 5 January 2024.






Announcement Info

Company Name EVERSENDAI CORPORATION BERHAD
Stock Name SENDAI
Date Announced 05 Jan 2024
Category General Announcement for PLC
Reference Number GA1-05012024-00066