LBS Bina Group Berhad which called for a suspension of trading of its securities, has today made a material announcement with regards to a disposal of a business unit based in Hong Kong.
In a Bursa filing, the group announced that its wholly-owned subsidiary, Dragon Hill Corporation Limited had entered into an
equity transfer and debt repayment agreement with Huafa Urban Operation (HK) Limited for the purpose of disposal of all equity interest in Lamdeal Investments Limited. The sale comprising of 2,200,000 ordinary shares epresenting 100% of the
issued share capital owas disposed for RMB192,180,968.21 which is approximately RM124 million.
The deal agreement also includes for the buyer to settle outstanding loan of RMB227,819,031.79 (approximately
RM147,877,333.53) of Lamdeal Investents Limited.
LBS said the disposal gives the group opportunity to monetise its investment which only has a balance of 19 remaining
years and enable it to focus on other opportunities. Furthermore the HK unit has experienced yearly losses mainly caused by the amortization of the land. The group addee that the racing circuit has encountered increasingly tough challenges due to increasing stringent sustainability compliance requirements. These challenges include addressing noise-related issues where compliance with these regulations necessitates significant operational adjustments.
The group is set to gain RM80 million from the disposal.
