Golden Land to return RM190.3m to shareholders after sale of assets

PETALING JAYA: Golden Land Bhd shareholders are in line from a bumper payout with the company planning to distribute cash worth 88 sen per share, which totals RM190.33 million.
The company has proposed a cash distribution that includes a capital reduction and repayment exercise as well as a special cash dividend following the sale of several subsidiaries and a parcel of land in Sabah for RM655 million last month.
Golden Land's proposed capital repayment involves a capital reduction exercise of 75 sen a share equaling to RM167.18 million that will result a reduction of its share par value from RM1.00 to 25 sen each.
"For illustration purposes, based on the existing number of Golden Land shares as at July 21, 2015 of 216.28 million (net of 6.63 million treasury shares), RM162.21 million will be paid to its shareholders pursuant to the proposed capital repayment,"it told Bursa Malaysia yesterday.
The special cash dividend of 13 sen per share amounts to RM28.12 million and shall be paid out of the net proceeds to be received by the company from the proposed disposal. The entitlement date to be determined and announced later.
On June 8, 2015 the company sold its entire equity interests in wholly-owned subsidiaries Yapidmas Plantation Sdn Bhd, Sri Kehuma Sdn Bhd, Ladang Kluang Sdn Bhd and Tanah Emas Oil Palm Processing Sdn Bhd as well as a 836.1ha oil palm plantation land in Beluran, Sabah to Pontian United Plantations Bhd, a wholly-owned subsidiary of Felda Global Ventures Holdings Berhad for RM655 million.
The company plans to use up to 43% of the net sale proceeds of RM444 million for the proposed distribution, 43% for the plantation and property development business, 10% for working capital and 4% for estimated expenses.
Golden Land intends to maintain its listing status after the proposed disposal and will seek Bursa Securities' concurrence to not be deemed a cash company in view of the proposed distribution. It will also apply for a waiver from being classified as an affected listed issuer under Practice Note 17 (PN17) of the listing requirements.
The proposed capital repayment is subject to the approval of shareholders including approval of the regulatory authorities.
The company expects to complete the proposed distribution in the first quarter of 2016.