Bina Darulaman to gain Rm17mil from sale of land

PETALING JAYA: Bina Darulaman Bhd is expected to book a gain of Rm17mil from the proposed disposal of a piece of freehold agriculture land in Baling.

In its filings with Bursa Malaysia, the engineering and construction services company yesterday said its wholly-owned subsidiary BDB Land Sdn Bhd had entered into a conditional sale and purchase agreement (SPA) to dispose of its 96.7ha agriculture land in Kuala Ketil in Baling for Rm48mil.

The group said the proposed disposal was critical to its turnaround effort.

“The proposed disposal will enable Bina Darulaman group to fully unlock and realise the value of its long-held assets in Kuala Ketil as part of the group broad strategic thrust to ensure sustainable value during recovery plan and value creation to the shareholders,” it said.

Bina Darulaman said the net proceeds arising from the proposed disposal, expected to be completed by the end of the second quarter of 2020, would be used for working capital and/or repayment of borrowings.

“The proposed disposal is expected to realise an estimated after-tax gain of approximately Rm17mil to the group, which is expected to improve its consolidated earnings per share by six sen for the financial year ending Dec 31, 2019, subject to the SPA become unconditional,” it said.

It added the group’s net assets was expected to increase by six sen to RM1.57 per ordinary share, while gearing ratio would decrease from 0.34 to 0.32 times.