Mulpha's unit completes disposal for RM55m

PETALING JAYA: Mulpha International Bhd's (MIB) sub-subsidiary Mulpha Strategic Limited (MSL) has disposed of its entire 19.9% equity interest in PBD Developments Ltd to Oasis Star Limited, a wholly-owned subsidiary of Tian An China Investments Company Limited for A$19.39 million.

Payment was received in cash in HK dollar equivalent, amounting to HK$112.13 million (RM55.06 million).

MSL, a wholly-owned subsidiary of Mulpha Group Services Sdn Bhd, which in turn is a wholly-owned subsidiary of MIB yesterday disposed of its entire stake in PBD, comprising 1.29 billion shares, at the price of A$0.015 per share to Oasis Star.

Tian An is a 48.66% owned associated company of Allied Properties (Hong Kong) Limited, which in turn is 74.92% owned by Allied Group Limited, all of which are listed on the Hong Kong Stock Exchange.

PBD is listed on the Australian Securities Exchange and its principal activity is residential property development.

Based on the sale consideration, MSL is expected to realise a gain of A$1.85 million from the disposal. After taking foreign exchange losses into account, MSL recorded a net gain of RM3.05 million from the disposal.

The proceeds from the disposal are to be utilised for the working capital requirements of MIB group, within 24 months from the completion of the disposal.

"MIB group originally invested in PBD in 2013 with the intention of using PBD's operations in Western Australia as a platform for the group to expand its property development and investment activities into this region. In view that PBD had not expanded to a size that is significant to the MIB group, the group decided to refocus on its existing core property development and investment assets in the East Coast of Australia," MIB said in a filing with the stock exchange.

The disposal provides MIB group with the opportunity to realise its investment in PBD at a small gain as a part of the MIB group's ongoing streamlining of its assets via the disposal of non-core assets.

The disposal is not expected to have any material effect on the earnings per share, net assets per share and gearing of MIB for the financial year ending Dec 31, 2015.