Seacera sells rest of unit to OCR Land

PETALING JAYA: Seacera Group Bhd has disposed of the remaining 51% stake in Seacera Land Sdn Bhd to OCR Land Holdings Sdn Bhd for RM25 million.
“The disposal is timely as the group is able to unlock its investment and record gains on disposal of its investment. During this period of economic slowdown, the cash received from the disposal may be used for any future investments should the opportunity arise,” it said in a filing with Bursa Malaysia last Friday.
Seacera, which is involved in tile manufacturing, property development and construction, said development activities may have to be deferred due to the slowdown in the property market, particularly the commercial segment.
It said the return on investment may take longer than expected should the group choose to continue with its development plans. The group expects to use RM15 million from the proceeds of the disposal for working capital purposes and the balance for future investments.
The group expects to record a gain on disposal of about RM8 million for the financial year ending Dec 31, 2016.
The disposal will not materially affect the gearings of the group as Seacera Land has no bank borrowings. However, the gearing ratio of the group is expected to be lower as a result from the gain on disposal.
Seacera Land was acquired by Seacera on Nov 26, 2007 for RM2.25 million cash and subsequently on Feb 14, 2014, the paid-up capital of Seacera Land was increased to RM15 million. On March 31, 2014, it disposed of its 49% stake in Seacera Land to OCR for RM20 million.