Lien Hoe sells Johor land for RM100.54 million

PETALING JAYA: Lien Hoe Corp Bhd is disposing of a piece of land measuring 36.4 acres in Masai, Johor for RM100.54 million.

The company said in a filing with the stock exchange that its wholly owned subsidiary Christine Resort Sdn Bhd had entered into a sale and purchase agreement with Plato Assets (M) Sdn Bhd for the disposal.

Lien Hoe said the disposal is to realise the value of the land after attaining substantial capital appreciation.

"It is also in line with the company's plan to generate immediate cash flow for the working capital requirements of the group. In addition, the sale proceeds will provide the needed capital funding for business expansion and new investment as and when such opportunity arises," it explained.

Based on Lien Hoe's latest audited financial statements as at December 31, 2016, the proposed disposal is expected to improve its gearing from 0.11 times to 0.10 times.

At 2.43pm, the stock rose one sen to 43 sen with some 1.18 million shares traded, bringing it a market capitalisation of RM155.55 million.