Se­lan­gor Dredg­ing seeks share­holder ap­proval to sell head­quar­ters

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: Se­lan­gor Dredg­ing Bhd will seek share­holder ap­proval for the dis­posal of a piece of free­hold com­mer­cial land in Kuala Lumpur for RM480mil in cash dur­ing its up­com­ing ex­tra­or­di­nary gen­eral meet­ing on Sept 29.

The land would be sold to­gether with its head­quar­ters, Wisma Se­lan­gor Dredg­ing, com­pris­ing four com­mer­cial build­ing blocks and two lev­els of base­ment car parks, the prop­erty de­vel­oper said in a fil­ing to Bursa Malaysia.

“The pro­posed dis­posal pro­vides an op­por­tu­nity for us to un­lock and re­alise our prop­erty in­vest­ment.

“It will en­able our com­pany to re­alise an es­ti­mated net gain of about RM93.9mil upon the dis­posal,” the com­pany said.

Se­lan­gor Dredg­ing said RM103mil from the pro­ceeds would be used to fi­nance its on­go­ing prop­erty de­vel­op­ment projects, namely The Hub, UNA and SqWhere.

It said shift­ing its fo­cus from in­vest­ment ac­tiv­i­ties to prop­erty de­vel­op­ment would con­trib­ute pos­i­tively to the group’s fu­ture earn­ings.

“The pro­posed dis­posal will also en­able our group to raise funds to re­pay part of our group’s bank bor­row­ings, which will re­duce net gear­ing from 0.35 times to 0.1 times.

“This will also re­sult in sav­ings on in­ter­est and pro­vide our group with the fi­nan­cial flex­i­bil­ity to se­cure ad­di­tional bor­row­ings, should new in­vest­ment and de­vel­op­ment op­por­tu­ni­ties arise,” it said.— Ber­nama

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