ENRA SHAREHOLDERS APPROVE ASSET SALE
Company to dispose of retail units in Holiday Plaza and basement car park, among others, for RM85.15m
ENRA Group Bhd’s shareholders yesterday approved the sale of lowyielding assets to Tan Sri David Law Tien Seng for RM85.15 million.
“Shareholders voted in favour of selling the low-yielding assets and using the proceeds to pare down debt,” said Enra deputy chairman Tan Sri Kamaluddin Abdullah.
The assets include 40 retail units in Holiday Plaza for RM51.85 million, the basement car park for RM28 million, three subsidiaries for RM133,921 and six office units in Taman Shamelin Perkasa, here, for RM5.16 million.
Kamaluddin was speaking after the company’s shareholders meeting, here, yesterday.
Also present was executive director KC Kok.
Kamaluddin said Enra planned to use RM36.96 million from the sale proceeds to repay bank borrowings and RM38.69 million to invest in or develop assets yet to be identified.
The remainder is to be used for working capital and expenses for the proposed asset disposal.
“When we repay the borrowings, Enra’s gearing will be brought down to 0.1 times from the current 0.4 times,” he said.
Kamaluddin noted that in the past two years, Enra had gone through considerable consolidation.
“Although it has taken a while, timing is in our favour. Our balance sheet is looking better as we dispose of legacy assets.
“I would say we are now in a strong position to take advantage of anticipated upturn in the market,” he added.
Last year, its subsidiary Enra Labuan Sdn Bhd entered into a conditional sale and purchase agreement with Perbadanan Labuan to buy 60ha of leasehold land in Labuan for RM7.5 million.
The agreement included an up to a five-year call option to acquire a further 140ha of connecting leasehold land.
Last month, Prime Minister Datuk Seri Najib Tun Razak announced plans to build a bridge connecting Labuan and Menumbok town in Sabah.
Kamaluddin said Enra welcomed the news as this would benefit its future developments in Labuan.
When asked on dividends, Kamaluddin replied there was no fixed policy as the company, whose core activities are in property development and oil and gas, was still growing and the management needed to ensure there was an adequate liquidity.