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Genting Malaysia to dispose land to Genting Plantations for RM65 million


Genting Malaysia Bhd’s (Genting) wholly owned subsidiary Genting Highlands Tours and Promotion Sdn Bhd will dispose two parcels of leasehold land at Jalan Segambut, Kuala Lumpur to a unit of Genting Plantations Bhd for RM65.76 million cash.

In a filing with Bursa Malaysia, Genting said Genting Highlands Tours had entered into a conditional sale and purchase (SPA) agreement with Esprit Icon Sdn Bhd, a wholly-owned subsidiary of Genting Plantations, for the disposal of the land.

The two pieces of adjoining land, measuring 3.54ha, houses a single storey office building, store, workshop and parking yard or garage, with a net book value of RM7.9 million, free of encumbrances, the filing stated.

Upon execution of the SPA, Esprit will pay RM6.58 million in deposit, of which RM1.97 million will be paid as real property gain tax to Esprit’s solicitors, as stakeholders and another RM4.603 million to Genting Highlands Tours.

The remaining RM59.18 million will be paid to Genting Highlands Tours, immediately after the transfer of the properties is finalised.

Genting Malaysia said the disposal provides an opportunity to unlock the value of the properties.

The group also intends to use the cash proceeds as working capital, it added.

On the completion date of the agreement, Esprit will execute a tenancy agreement for Genting Highlands Tours to lease 0.93ha for two years, immediately from the completion date for RM750,000, with an extension on the tenancy for a further one year, upon expiry of the rental term.

The market value of the properties was determined by Raine & Horne International Zaki and Partners Sdn Bhd at RM68.5 million on July 26, the filing stated.

Genting Malaysia had acquired the properties on Dec 8, 2009, which were then valued at RM24.5 million.

Currently, the properties are occupied by Genting Malaysia to house its transport operations, and are leased to a third party tenant.

Genting Malaysia will continue to remain at the properties until 2017 to not disrupt its operations, and will progressively relocate to another site.

It also said the group expects to realise a gain from the disposal for the financial year, when the disposal is finalised, but the actual gain will depend on the net book value of the properties at the time of finalised disposal.

“Based on its results for the financial year ended Dec 31, 2014 and assuming that the Proposed Disposal had taken place on Dec 31, 2014, the proposed disposal is expected to realise a gain of RM43.3 million to the Genting Malaysia Group,” the filing stated.

Genting Malaysia’s shares closed four sen or 0.91% higher at RM4.44 today, for a market capitalisation of RM5.67 billion.


News source: (The Malaysian Insider)

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